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

This policy brief examines illicit financial flows (IFFs) resulting from migrant smuggling in Senegal and Sierra Leone. It highlights a systemic failure to employ 'follow the money' investigative techniques, noting that smuggling revenues are frequently laundered through cash-based informal systems and invested in formal sectors like real estate and hospitality. The document identifies significant institutional gaps, including underfunded Financial Intelligence Units (FIUs) and corruption within law enforcement and the judiciary, and provides recommendations for strengthening regulatory frameworks and regional cooperation.

• Migrant smuggling is a highly lucrative global criminal activity, generating an estimated annual profit of over 10 billion USD. For routes from East, North, and West Africa to Europe, profits are estimated at approximately 6.57 billion USD, with West Africa to Europe alone contributing over 100 million USD.
• Smugglers in Senegal and Sierra Leone utilize a variety of payment models and routes. Full package trips to Europe cost between 1,000 and 1,500 USD, while routes to the Canary Islands cost 400 to 600 USD. Trips to Middle Eastern destinations such as Lebanon, Oman, Kuwait, and Saudi Arabia typically cost between 800 and 1,200 USD.
• Illicit funds are primarily moved through cash or informal transfer systems, such as hawala and parallel foreign exchange markets, which allow for anonymity and avoid the banking sector. While formal services like Western Union and Orange Money are used, the Senegal FIU (CENTIF) reported only about six suspicious transaction reports from formal money services and electronic currency institutions out of 213 total notifications in 2020.
• Smugglers integrate illicit proceeds into the formal economy by investing in specific sectors, including real estate, travel agencies, the hospitality industry (bars, restaurants, hotels), second-hand vehicle sales, and religious or charitable organizations.
• Despite having anti-money laundering laws, Senegal and Sierra Leone rarely apply 'follow the money' approaches to migrant smuggling. Financial Intelligence Units (FIUs) in both countries are underfunded, understaffed, and lack the specialized knowledge required to conduct independent criminal investigations into these flows.
• Institutional challenges in Senegal include the lack of a beneficial ownership register, which facilitates corruption and the return of seized assets to criminals. Consequently, Senegal remains on the FATF 'grey list' for failing to meet international standards on money laundering and terrorist financing.
• In Sierra Leone, investigations are hindered by a lack of witness cooperation due to the perceived vital role smugglers play in rural communities and fear of retaliation. There are also reports of corruption among security forces, judges, and immigration officials who may protect smugglers or dismiss cases.

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} }