African countries are seeing money laundering as a common problem requiring transboundary solutions, in what call for linked legal frameworks to tackle the issue, At the 48th Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) Task Force of Senior Officials Conference this week, officials summed up money laundering as a fuel for other organized crime transcending physical boundaries…
These include terrorism, drug trafficking, human trafficking and poaching, Essentially, money laundering is concealing financial benefits obtained from these illegal activities but also includes corruption or embezzlement of public funds. Launderers often try to convert the money into some legitimate business, say a night club, land buying and selling and other businesses to hide their tracks.
Money laundering forms the wider problem of illicit financial flows. According to the 2023 Tax Transparency in Africa Progress Report, African countries have saved up to $2 billion per year from voluntary disclosures, improved information exchange sharing and rigorous offshore investigations.
The report was released by the Global Forum on Transparency and Exchange of Information for Tax Purposes, the African Union Commission and the African Tax Administration Forum, supported by the African Development Bank, and observed trends in 38 African countries where tax evasion, and other illicit financial flows have been higher.Overall, Africa loses some $60 billion to these illicit flows.
But when it comes to laundering, which may be illicit financial transactions within the same country, or across the border, countries have struggled to tame the vice, More than 60 percent in the Eastern and South African countries are yet to address the identified strategic deficiencies to combat money laundering and terrorist financing which is affecting confidence of investors in Africa.
