Financial Crime World

Saharawi Arab Democratic Republic (SADR) Declares Independence Amid Ongoing Conflict

A decade-long conflict between Morocco and the Saharawi Arab Democratic Republic (SADR) has reignited, with the SADR declaring independence and refusing to negotiate with Morocco until a referendum on self-determination is held.

The Polisario Front’s Accusation

The Polisario Front, which represents the Sahrawi people, has accused Morocco of violating international law by consolidating its presence in Western Sahara through trade agreements that do not comply with UN resolutions. The EU-Morocco agriculture and fisheries agreements have been deemed illegal by the European Court of Justice (ECJ) due to lack of consent from the people of Western Sahara.

Impact on Businesses

The conflict has far-reaching implications for businesses operating in the region, with several companies facing legal and reputational risks. In May 2017:

  • A South African court detained an OCP-owned vessel carrying phosphate rock from Western Sahara, citing illegal occupation by Morocco.
  • The Danish Ultra Innovation was also detained.
  • Six major French companies were denounced by the Polisario Front for doing business with an “illegal occupier.”

EU-Morocco Deals in Jeopardy

The EU has several trade agreements with Morocco, but these have been challenged in court due to lack of consent from Western Sahara’s people. The ECJ has ruled that any agreement involving Western Sahara’s resources must obtain the consent of the people of the territory.

Sanctions Risks Loom

With the moral uncertainty surrounding trade agreements in the region, there is a risk of sanctions being imposed on Morocco for violating human rights in Western Sahara. Recently:

  • 53 Norwegian NGOs called on their government to act on the matter at the UN Security Council.

Companies operating in Western Sahara need reliable information to navigate the complex threats presented by this conflict. Adverse media screening (AMS) services and due diligence reports can provide a robust defense against regulatory violations and reputational issues.

Dow Jones’ Expertise

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About the Author

Davide Contini is a researcher for Dow Jones Risk & Compliance’s adverse media entities unit. He covers Italian and Francophone sources and has a vast knowledge of North and Francophone Africa. Since 2018, he has served as a board member of the Brussels-based NGO Western Sahara Resource Watch.

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