Wednesday 13 August 2014

Gambia real estate sector provides conduit for illicit money to be laundered

By Lamin Jahateh
The Gambia’s booming real estate sector has provided a conduit, a channel through which drug traffickers, corrupt people and other criminals involve in illicit financial activities to launder their ill-gotten gains.

The 2013 annual report of the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), released on Monday, stated that the most prevalent predicate crimes in the country in 2013 were drug trafficking, corruption, tax fraud, bank fraud and fraud in other investments.

Monies generated from such criminal ventures are typically laundered through the real estate, cross-border cash movements, and banks.

Real estate sector

The rapid development in The Gambia’s real estate sector is increasingly becoming a cause for concern as it is one of the sectors that are most vulnerable to the activities of money launderers.

The country continues to witness tremendous development in the construction and real estate sector with strong foreign direct investment.  Almost all the major coastal and some inland towns and villages have at least one housing estate or individual properties situated randomly for sale. 

However, the increased pace of economic development in the real estate sector also presents a challenge to the country.  This is so because The Gambia is yet to fully develop a regulatory framework to shield itself against criminals using real estate to launder their ill-gotten money or proceeds from criminal activities.


Cash movement

The major players in The Gambian private sector are non-citizens and as such, GIABA observed that cross-border movement of cash is also a serious challenge due to the economic activities of nationals from other countries.

Smuggling menace 

According to GIABA, The Gambia lacks the capacity to monitor the full stretch of its borders.  Therefore, smuggling is prevalent, though the country’s customs collaborate with Senegalese counterparts to address the problem.

Nevertheless, it said the of cocaine and marijuana in the country is a demonstration that the country is also one of the routes for drug trafficking in West Africa.

Trafficking thriving

Tourism-related human trafficking is a thriving underground business in The Gambia, GIABA has pointed out.

It said the Smiling Coast is also a source, transit and destination country for women and children subjected to forced labour and sex exploitation.

The Trafficking in Persons Report 2013 reveals that the booming sex tourism industry propels the recruitment of young (sometimes under-aged) girls from nearly all ECOWAS member States by traffickers to meet the demands of European child-sex tourists.

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