Illicit financial flows from migrant smuggling in Senegal and Sierra Leone

This policy brief examines illicit financial flows (IFFs) resulting from migrant smuggling in Senegal and Sierra Leone. It identifies a significant gap between the existence of anti-money laundering laws and the actual investigation of smuggling proceeds, which are primarily moved through cash and informal channels. The document highlights institutional weaknesses, including underfunded financial intelligence units and corruption, and provides recommendations to prioritize 'follow the money' approaches to disrupt smuggling networks.

• Migrant smuggling is a highly profitable global criminal activity, with annual profits estimated at over $10 billion. Specifically, profits from smuggling from East, North, and West Africa to Europe are estimated at approximately $6.57 billion, with moderate estimates for West Africa to Europe alone exceeding $100 million.
• Smuggling fees vary by route and service level. Full-package trips to Europe cost between $1,000 and $1,500, while those to the Middle East range from $800 to $1,200. Sea routes from Senegal to the Spanish Canary Islands typically cost $400 to $600, and 'pay-as-you-go' inland routes to Europe cost between $600 and $800.
• Smugglers prefer informal money transfer systems, such as the hawala system and foreign currency black markets, to move funds. These methods are preferred because they are anonymous, paperless, and avoid the banking sector, making the funds difficult to trace. In Senegal, a 2020 report from the financial intelligence unit (CENTIF) showed that only 6 out of 213 suspicious transaction reports came from formal money service businesses and electronic money institutions.
• Illicit proceeds from migrant smuggling are integrated into the formal economy through various sectors. These include real estate, travel agencies, the hospitality industry (bars, restaurants, clubs, and hotels), the sale of second-hand vehicles, mining, and faith-based or charity organisations.
• Despite having anti-money laundering and anti-smuggling laws, Senegal and Sierra Leone rarely employ 'follow the money' approaches in smuggling investigations. This is attributed to a lack of resources and expertise in financial investigative agencies, as well as a perception that migrant smuggling carries a low risk for money laundering.
• Senegal faces specific institutional challenges, including being on the Financial Action Task Force (FATF) grey list for non-compliance with international standards. The country lacks a beneficial ownership registry for seized or confiscated property, which has led to corruption where offenders bribe officials to recover assets.
• In Sierra Leone, investigations are hindered by a lack of witnesses and suspected official complicity. Migrants are often unwilling to testify because they view smugglers as helpful or fear retaliation from both criminals and corrupt security forces. There are reports of judges dismissing cases unless high-profile entities like the IOM or civil society are involved.

APA

Ani, N. C., & Shahid, J. (2023). Illicit financial flows from migrant smuggling in Senegal and Sierra Leone. Institute for Security Studies. https://issafrica.s3.amazonaws.com/site/uploads/ocwar-t-policy-brief-4-eng.pdf

Chicago

Ani, Ndubuisi Christian, and Jennifer Shahid. Illicit financial flows from migrant smuggling in Senegal and Sierra Leone. Institute for Security Studies, 2023. https://issafrica.s3.amazonaws.com/site/uploads/ocwar-t-policy-brief-4-eng.pdf.

Wikipedia

{{cite report |last1=Ani |first1=Ndubuisi Christian |last2=Shahid |first2=Jennifer |title=Illicit financial flows from migrant smuggling in Senegal and Sierra Leone |publisher=Institute for Security Studies |date=July 2023 |url=https://issafrica.s3.amazonaws.com/site/uploads/ocwar-t-policy-brief-4-eng.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ani2023illicit, author = {Ani, Ndubuisi Christian and Shahid, Jennifer}, title = {{Illicit financial flows from migrant smuggling in Senegal and Sierra Leone}}, institution = {Institute for Security Studies}, year = {2023}, month = jul, url = {https://issafrica.s3.amazonaws.com/site/uploads/ocwar-t-policy-brief-4-eng.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }