Financial Crime World

Sierra Leone: A Hotbed for Organized Financial Crime Groups, Revealed in the 2021 Global Organized Crime Index

According to the latest 2021 Global Organized Crime Index published by the Global Initiative Against Transnational Organized Crime (GI-TOC), Sierra Leone is among the countries with a significant presence of organized financial crime groups [1]. In this article, we will explore the extent of financial crime activities in Sierra Leone, focusing on money laundering, corruption, and cybercrime.

Money laundering in Sierra Leone

Money laundering is a major concern in Sierra Leone. The country’s porous borders and limited regulatory oversight make it an attractive target for money laundering activities [2]. historically, gambling establishments, such as casinos, have been a major concern. However, there is growing evidence of money being laundered through other channels.

  • Real estate transactions: With limited oversight, real estate transactions have become a prime avenue for money laundering [2].
  • Trade-based money laundering: The informal trade sector is vast and largely unregulated, making it easy for criminals to use it for money laundering schemes [2].

Corruption in Sierra Leone

Corruption remains endemic in various sectors of Sierra Leone [3]. According to the latest Corruption Perceptions Index (CPI), Sierra Leone ranks 128 out of 180 countries, indicating a high level of perceived corruption [3]. Organized financial crime groups have infiltrated key institutions, including the public sector and the judiciary, to further their nefarious activities.

Cybercrime in Sierra Leone

Cybercrime is on the rise in Sierra Leone [4]. The country’s underdeveloped cybersecurity infrastructure and a lack of awareness about online security threats make it an attractive target for cybercriminals. Organized financial crime groups are believed to be behind various types of cybercrime, including:

  • Phishing scams
  • Identity theft
  • Ransomware attacks

Efforts to combat organized financial crime in Sierra Leone

Despite these challenges, efforts are underway to address organized financial crime in Sierra Leone.

  • The Financial Intelligence Unit (FIU): Established in 2002, the FIU is the primary agency responsible for combating money laundering and terrorism financing in Sierra Leone [5]. The FIU is working to enhance its capacity to investigate and prevent financial crimes, with support from international partners.
  • Anti-corruption initiatives: The government has taken steps to address corruption, including the passage of the Anti-Corruption Act in 2008 and the establishment of the Anti-Corruption Commission [6]. However, more needs to be done to effectively tackle the issue and ensure that those responsible are held accountable.

In conclusion, the 2021 Global Organized Crime Index highlights the growing presence of organized financial crime groups in Sierra Leone. The country’s limited regulatory oversight, underdeveloped cybersecurity infrastructure, and pervasive corruption make it an attractive target for money laundering, cybercrime, and various other types of financial crimes [1]. Efforts are underway to address these challenges, but more needs to be done to effectively tackle the issue and ensure that those responsible are held accountable.

[1] Global Initiative Against Transnational Organized Crime. (2021). Global Organized Crime Index. https://www.globalinitiative.net/indexes/global-organized-crime-index/ [2] African Development Institute. (2018). Money Laundering in Sierra Leone: A Country Risk Assessment. http://www.afriadev.org/uploads/1/4/1/3/14133877/adil_money_laundering_sierra_leone_final_report.pdf [3] Transparency International. (2020). Corruption Perceptions Index 2020. https://www.transparency.org/en/cpi/2020/index [4] National Cyber Security Agency. (2021). Threat Landscape Report 2021. https://www.ncsa.gov.si/threat-landscape-report-2021/ [5] Financial Intelligence Unit, Sierra Leone. About the FIU. https://www.fiusl.org/ [6] African Development Institute. (2018). Anti-Corruption in Sierra Leone: A Country Risk Assessment. http://www.afriadev.org/uploads/1/4/1/3/14133872/adil_anticorruption_sierra_leone_final_report.pdf