ANB-BIA SUPPLEMENT

Africa risks becoming the favourite place for dealers in search of new channels for laundering dirty money.
To thwart them, new regional initiatives are gradually being phased in

What’s the origin of this phenomenon? Trafficking in drugs (cocaine, heroin, marijuana) and arms, corruption and prostitution are some of the sources of dirty money. Profit from these criminal activities is enormous. According to estimates by the IMF, it ranges between 2% and 5% of world GNP. Irreversible globalisation, and particularly the liberalisation of international trade, the opening up of frontiers and privatisation, facilitate money laundering and makes it easy for traffickers to set up cross border groups.

Action

Congo-Brazzaville, Gabon, Central Africa, Cameroon, Chad and Equatorial Guinea which are members of the Economic and Monetary Community of Central Africa (CEMAC) are determined to combat money laundering and the financing of terrorism. In October 2002, experts from the Bank of Central Africa states (BEAC) went over mechanisms to combat this phenomenon with a fine comb. A seminar bringing together a number of delegations representing the administrations of CEMAC countries, was held with the evocative theme: «Preventing the Laundering of Capital and the Financing of Terrorism; and Suppressing These Evils».

The mechanism foreseen for CEMAC countries should result in the creation in each state of a financial investigation office, which would be the national anti-laundering agent, with powers to investigate private and state-run financial institutions, which would be obliged to reveal more doubtful operations. The authorities charged directly with the repression of this practice, are obliged to adopt the many efforts which have been consented to for this purpose, in order to make the African continent safe. Jean-Felix Mamalepot, the BEAC‘s governor, said: «The economic potential of CEMAC‘s member countries, arouses the greed of money launderers and terrorists». According to another expert: «We are redoubling our efforts to try to curb, as best we can, the humiliating practices which finance terrorism and other activities throughout the region, giving rise to many kinds of damage, on the human and material levels».

As a follow up to this meeting, the experts met again in October 2002 in Yaoundé, Cameroon. The principal conclusion of this meeting was the creation of an Action Group Against Money Laundering In Central Africa (GABAC) with the following aims:

• To fight against money laundering and proceeds of crime;
• To take unified, joint and appropriate measures in CEMAC‘s action;
• To evaluate the results of the action and the effectiveness of the measures taken;
• To assist other member countries in anti-laundering policies;
• To collaborate with existing structures in Africa and internationally.

Previous experience

In 1989, the seven most industrialised countries created a Financial Action Group (GAFI) to put an end to money laundering and the financing of terrorism. As time passed, GAFI gained more experience, and this now serves as a guide to fight against money laundering on a global scale.

GAFI favoured operating in smaller sectors, preferring to establish regional anti-laundering groups, similar to the Intergovernmental Action Group Against Money-Laundering in Africa, which was created in 1999 within the Economic Community of West African states. CEMAC also carried out large-scale operations. The results became evident in the seminar held at Yaoundé in November 2000 on the theme: «The Fight Against Money Laundering in CEMAC countries». This seminar decided on:

• The establishment of an intergovernmental group to combat money laundering in CEMAC countries;
• The need to draw up a community policy to combat the laundering of capital

There was still a need to be more specific. So, in December 2000, in Ndjamena, Chad, CEMAC‘s Heads of State issued the following declaration, stating: «Their common and solemn will to make every effort to combat money laundering in CEMAC countries by all appropriate means; in particular to pass unified laws and to establish specialised structures». It was then decided to establish an action group, GABAC, mentioned above.

Since 1999, GAFI has declared Sub-Saharan Africa to be «vulnerable to money laundering». Corruption, arms trafficking and contraband generate illegal revenue in the sub-region, but there is very little information available on how this money is laundered, or about the possibility of moving dubious money across some African counties. This situation forces some experts to say that Africa can be seen as a favourite place for this activity. In fact most countries lack the necessary legislation to fight this kind of crime. The absence of control makes Africa a favourable area for these practices.

The establishment of regional groups aimed at tracking the movement of dirty money can be seen as an encouraging development. And the work of these organisations will give a better understanding of money laundering in Africa. But while things seem to be progressing in West Africa, in Central Africa the institutions are merely marking time. The anti-laundering group in East and Southern Africa, set up in 1999, promise significant advance in this area, while GABAC is dragging its feet.

• Médard Libani, Congo-Brazzaville, January 2003 — © Reproduction authorised, with usual acknowledgment