The Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) has said that the culprits behind significant instances of corruption in the region are primarily public officials and public office holders who divert funds intended for the well-being of citizens.
The group stated this in a communique issued at the end of a five-day workshop on the ‘Typologies Study of Money Laundering and Terrorist Financing Linked to Corruption in West Africa,’ held in Abuja.
GIABA said that such culprits engage in money laundering through financial or stock market products offered by financial institutions, as well as via the acquisition of real estate properties, agricultural ventures, livestock, and both formal and informal business sectors.
The report underscored that corruption opportunities within the public service are characterized by dynamic factors driven by human interactions in service delivery and the collection of revenue.
Corruption, according to the communique, is deeply entrenched within both the public and private sectors. Acts such as embezzlement, misappropriation of public funds, bribery, and irregularities in contracting and procurement contribute to this phenomenon.
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“On the magnitude of corruption and its negative impacts on national economies. Corruption is one of the predicate crimes for money laundering. It is a major source of illicit proceeds in West Africa, which is laundered using different methods and techniques both at home and abroad. It is also the most potent enabler and facilitator of many criminal activities and a major hindrance to countries’ ability to build robust and effective AML/CFT regimes,” it said.
It noted that corruption and money laundering increase social and economic inequalities, leading to social radicalisation, violent extremism, and terrorism.
“It also results in huge losses of fiscal and customs revenue, which limit states’ ability to provide access to basic social services, especially for provinces and rural populations,” it added.
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It said Politically Exposed Persons (PEPs) exercise undue influence on appointments and other activities in the member states to enable anti-graft agencies to perform their duties.
“Typologies and case studies have revealed that obstruction of justice remains one of the bottlenecks to the implementation of effective AML/CFT and anti-corruption regimes,” the communique said.