Financier Crimes: Senegal’s Unseen Battle Against Business Harassment and Money Laundering

The Senegalese coastline at dusk. (Credit: Issa Sikiti Da Silva)

Senegal, known for its vibrant arts scene and beautiful beaches, has emerged as an unseen battleground for financial crimes. According to a recent report by the Financial Action Task Force (FATF), funds linked to drug trafficking, real estate, and money laundering continue to plague the country.

Increasing Acts of Extortion and Harassment

Businesses operating in Senegal have reported rising acts of extortion and harassment, often linked to financial crimes. A business owner shared their ordeal:

“We had to pay off several ‘intermediaries’ to avoid a legal dispute.”
“The cost for us was in the millions of CFA francs.”
“We felt helpless and trapped.”

[Business Owner’s Story]

The Senegalese government acknowledges the issue and is taking steps to address it. Collaboration with FATF could potentially help the country get off the grey list, strengthening the economy and making the business environment more investor-friendly.

The Drug Trade: A Major Source of Financier Crimes

Senegal’s strategic location, bordering the Atlantic Ocean and neighboring Mauritania and Guinea-Bissau, makes it a significant point in the drug trafficking route from South America to Europe. With drug-related revenues reportedly totaling an estimated $1.3 billion a year, the consequences of this illicit trade reach far beyond the criminal underworld.

Collaboration and Corruption: Police, politicians, judges, and even politicians are believed to be involved.
Impact on Institutions: Drug trafficking in Senegal has corrupted institutions and created a culture of impunity.

[The Drug Trade and Senegal]

Real Estate: Hidden Hotbed of Financial Crimes

Real estate is another sector in which financial crimes thrive. Fewer than 1% of transactions are recorded in the national land registry, creating an enormous shadow economy where the proceeds of financial crimes can be washed clean.

Unrecorded Transactions: Transactions occurring through intermediaries pose a significant risk to Senegal’s property market.

[Real Estate and Financial Crimes]

Money Laundering: The Hidden Side of Senegal’s Economy

Money laundering is another critical component of the financial crimes puzzle in Senegal. It is believed that the country has become a transit point for laundered cash from Europe, Asia, and the Americas.

Vulnerabilities in the Financial Sector: The financial sector of Senegal remains susceptible to money laundering and terrorist financing risks.

[Money Laundering in Senegal]

The Way Forward for Senegal

Despite these challenges, Senegal continues to make headway in fighting financial crimes.

Government Action: In May 2021, the government launched the National Center for Combating Money Laundering and Financing of Terrorism.
International Support: International partners and organizations, such as the EU and the World Bank, are offering support and collaborating with the Senegalese government to bolster its efforts against financial crimes.

[Senegal’s Fight Against Financial Crimes]

As the world focuses on economic recovery and building more resilient economies, the efforts to combat financial crimes in countries like Senegal will be crucial to creating a secure and prosperous future for all.