Illicit financial flows from migrant smuggling in Senegal and Sierra Leone

The report finds that despite having anti-money laundering and anti-smuggling laws, Senegal and Sierra Leone struggle to investigate the financial trails of migrant smugglers. This is due to a reliance on cash and informal payment systems like hawala, under-resourced financial intelligence units, and corruption within law enforcement. Smugglers often integrate their profits into the formal economy through real estate, travel agencies, and the hospitality sector.

• Migrant smuggling is a highly profitable global activity, with an estimated annual profit exceeding $10 billion. Specifically, profits from smuggling from East, North, and West Africa to Europe are estimated at approximately $6.57 billion, with 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 'pay-as-you-go' options via inland routes to Europe range from $600 to $800. Trips to the Canary Islands cost $400 to $600, and Middle East packages range from $800 to $1,200.
• Smugglers prefer informal money transfer systems, such as the hawala system and foreign currency black markets, because they allow for anonymous, paperless, and swift transfers that avoid the banking sector and are difficult to trace.
• Illicit proceeds from migrant smuggling are integrated into the formal economy through investments in several sectors, including real estate, travel agencies, the hospitality industry (bars, restaurants, clubs, and hotels), second-hand vehicle sales, mining, and charity or faith-based organisations.
• Senegal's financial intelligence unit (CENTIF) is underfunded and understaffed, lacking the capacity for independent investigations. Furthermore, Senegal remains on the FATF grey list for failing to meet deadlines for action plans, including the need to ascertain beneficial ownership.
• In Sierra Leone, 'follow the money' approaches are hindered by limited resources, low expertise, and a reluctance of migrants to testify against smugglers. This reluctance is driven by the perception that smugglers provide vital support and fears of retaliation from corrupt security officials.

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} }