International Journal on Criminology Volume 6, Number 2, Winter 2018/Spring 2019 | Page 50

The Fight against Money Laundering and Terrorist Financing in West Africa
money laundering, terrorism, and its financing. Each of these countries' legal and
institutional AML/CFT framework was also the subject of an initial peer review
(mutual evaluation) cycle, the reports from which have been published and adopted.
In particular, given states' limited ability to cope with the multiple challenges
posed by AML/CFT, GIABA also carries out technical assistance missions,
including capacity building programs, developing national strategies, supporting
the conduct of national risk assessments, and advocacy and outreach to both public
and private political actors. Its aim is to make the region's AML/CFT system
conform to the requirements of international standards.
3. Despite GIABA's efforts, the money laundering and terrorist financing situation
in West Africa gives cause for concern. Recent figures and reports indicate
a dramatic rise in a number of money laundering predicate offenses, including
drug trafficking and corruption. Nonetheless, there are still very few convictions
for money laundering. Terrorism is also increasing in the region, and appears to
use specific funding methods, similar to those used to fund organized criminal
groups.
General Trends and Vulnerabilities
4. When combined, the countries of West Africa within ECOWAS account for
one fifth of the surface of Africa, a total of 6,140,000 km 2 , with a population of
320,347,000 people, half of them in Nigeria. This population is largely spiritual
and religious. The main religions practiced are Islam (mostly Sunni), Christianity,
and animism.
5. West Africa is a very economically dynamic region, and its growth prospects
are very positive. It is nonetheless poor, having been ranked low on the development
indices of numerous United Nations Development Program Development
(UNDP) reports. It has a low literacy rate and a low rate of bank use (less than 10
percent for the entire region). This explains the size of the informal sector, which
significantly rivals that of the formal economy. Cash transactions are commonplace.
However, the fight against money laundering and terrorist financing is based
on rules that essentially apply only to the formal sector. It relies on the traceability
of financial flows, particularly through the banking sector. This explains the poor
results that AML/CFT initiatives have had in West Africa. After the first round of
peer review by ECOWAS member countries, GIABA conducted a strategic review
of the various evaluation reports in order to identify the main shortcomings and
to draw lessons to improve the next cycle. It emerged that countries in the region
demonstrated very limited technical compliance with the criteria for evaluating
the FATF's recommendations, both legally and institutionally.
These countries' performances (less than 1.7 percent ) are even less impressive
if we look at compliance with the sixteen key and essential FATF recom-
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