Illicit financial flows from migrant smuggling in West Africa: A policy review

The report finds that despite having anti-money laundering laws, Senegal and Sierra Leone struggle to investigate the financial trails of migrant smugglers due to a reliance on cash and informal transfer systems like hawala. Financial Intelligence Units (FIUs) in both countries are underfunded and lack the specialized expertise to implement 'follow the money' strategies. Smugglers frequently integrate illicit gains into the formal economy through real estate, travel agencies, and the hospitality sector. The document recommends prioritizing financial investigations, increasing FIU budgets, and improving inter-agency and international cooperation to disrupt these financial flows.

• Migrant smuggling is a highly lucrative global criminal activity, generating an estimated annual profit of over 10 billion US dollars for smugglers, with approximately 6.57 billion US dollars originating from Eastern, Northern, and Western Africa destined for Europe.
• Smugglers in Senegal and Sierra Leone utilize a variety of payment models and routes; full-package trips to the Middle East cost between 800 and 1,200 USD, trips to Europe cost between 1,000 and 1,500 USD, and routes to the Canary Islands cost between 400 and 600 USD.
• Illicit funds are frequently moved via cash or informal transfer systems such as hawala and parallel foreign exchange markets to ensure anonymity and avoid the banking sector, making tracking difficult for authorities.
• Smugglers integrate their illicit proceeds into the formal economy by investing in specific sectors, including real estate, travel agencies, second-hand vehicle sales, mining, and the hospitality industry (bars, restaurants, and hotels).
• Financial Intelligence Units (FIUs) in Senegal (CENTIF) and Sierra Leone are underfunded and lack the personnel and specialized knowledge required to conduct independent criminal investigations into money laundering linked to migrant smuggling.
• Senegal remains on the FATF 'grey list' due to failures in implementing action plans, specifically regarding the verification of beneficial owners through 'know your customer' policies.
• In Sierra Leone, investigations are hindered by a lack of witness cooperation and alleged corruption among security forces, judicial officers, and immigration officials who may protect smugglers.

APA

Ani, N. C., & Shahid, J. (2023). Illicit financial flows from migrant smuggling in West Africa: A policy review. Institute for Security Studies. https://issafrica.s3.amazonaws.com/site/uploads/ocwar-t-policy-brief-4-por.pdf

Chicago

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

Wikipedia

{{cite report |last1=Ani |first1=Ndubuisi Christian |last2=Shahid |first2=Jennifer |title=Illicit financial flows from migrant smuggling in West Africa: A policy review |publisher=Institute for Security Studies |date=May 2023 |url=https://issafrica.s3.amazonaws.com/site/uploads/ocwar-t-policy-brief-4-por.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 West Africa: A policy review}}, institution = {Institute for Security Studies}, year = {2023}, month = may, url = {https://issafrica.s3.amazonaws.com/site/uploads/ocwar-t-policy-brief-4-por.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }