Financial Crime World

Title: Senegal Caught in the Web of Financial Crimes: Could Cooperation with FATF Be the Solution?

Subtitle

  • Drug trafficking, money laundering, and real estate scams: A closer look at Senegal’s illicit economy

Date: January 20, 2022

Byline: Abdelkader Abderrahmane

Senegal, a small West African nation, has been making headlines for all the wrong reasons. The country, currently ranked 8th in the world for money laundering and terrorist financing risks, has become a hub for drug trafficking and illicit money flows. This economic situation not only threatens the country’s stability but also hampers its economic growth. But is there a way out?

Senegal’s Economy Bewitched by Illicit Finance

Booming in the Wrong Places

  • Real estate scams
  • Drug trafficking, money laundering

Key Transfer and Collection Point

According to the United Nations Office on Drugs and Crime (UNODC):

  • West and Central Africa: critical transit and origin region for cocaine and heroin
  • Senegal: key transfer and collection point

Weak Regulations and Lax Enforcement

  • Financial sector: enabling environment for money laundering
  • Existing gaps: need to be addressed to combat transnational crimes
  • Presence on FATF grey list since 2010

Real Estate Sector Tainted by Money Laundering Schemes

  • Lack of transparency, poor record keeping
  • Properties bought with dirty money

The Power of International Cooperation and FATF

Benefits of FATF Cooperation

  • Lift the country off the grey list
  • Improve transparency, accountability, rule of law
  • Technical assistance, training for financial intelligence unit and law enforcement agencies
  • Enhance international standing as a responsible member of the international community
  • Attract foreign investment, improve trade relations

Criticism of FATF Cooperation

  • Excessive financial regulations, administrative burden

Conclusion

Addressing drug trafficking and money laundering issues is vital not just for international norms but also for Senegal’s economic growth and long-term stability. International cooperation with the FATF could be the key to unlocking the potential of Senegal’s economy and improving the lives of its people. The international community, led by the FATF, must work together with Senegalese authorities to create a more secure and prosperous future for this West African nation.