Financial Crime World

Money Laundering Scourge: Senegal’s Battle Against Drugs, Real Estate, and Financial Crimes

Subtitle: A Look into the Financial Action Task Force’s Role in Senegal’s Bid to Eliminate Illicit Activities

Senegal, a West African economic powerhouse, struggles with pervasive financial crimes that undermine its economy. Despite efforts to curb money laundering and terrorism financing, Senegal has faced international criticism, finding itself on the Financial Action Task Force (FATF) grey list since 2010. In this article, we explore Senegal’s fight against illicit activities and the role of the FATF in this process.

Senegal’s Financial Crimes Landscape

  1. Drug Trafficking: Senegal serves as a transit country for illicit drugs, primarily cocaine bound for Europe.
  2. Real Estate: The real estate sector is a hotbed for money laundering, with prime opportunities in cash-intensive industries like construction and tourism.

The FATF’sAssessment: Identifying the Gaps

In 2012, the FATF published its Mutual Evaluation Report on Senegal, assessing the country’s progress in implementing anti-money laundering and countering the financing of terrorism (AML/CFT) measures. While Senegal’s legal framework was relatively strong, the following deficiencies were identified:

  1. Oversight Mechanisms: Insufficient oversight mechanisms for monitoring financial transactions.
  2. Resources: Inadequate resources allocated to the financial intelligence unit (FIU).
  3. Penalties: Insufficient enforcement of penalties for non-compliance.

Senegal’s Response: Improving Capacity and Collaboration

In 2018, Senegal submitted an action plan to the FATF, outlining corrective measures in several areas. Since then, progress has been made:

  1. Enhancing FIU Capacity: Strengthening the FIU’s ability to monitor and analyze financial transactions.
  2. Oversight: Improving the oversight of designated non-financial businesses and professions.
  3. International Partnership: Developing closer ties with international partners like the FATF and the European Union.

The Stakes: Economic Revival and Reputation

The current FATF review of Senegal’s progress is due to be completed by the end of 2022. If successful, Senegal stands to:

  1. Reap economic benefits: Increased foreign investment and a stronger reputation.
  2. Ensure a more stable and transparent economic environment: Benefiting local businesses and international partners.

Conclusion

The battle against money laundering, drugs, and real estate-related financial crimes in Senegal is ongoing, but recent improvements and international support offer reasons for optimism. With the FATF’s final review of Senegal’s progress imminent, the country is poised to make significant strides in addressing these challenges and bolstering its economy.