The Inter-Governmental Action Group against Money Laundering (GIABA) has reiterated the need for stronger political commitment and regional cooperation to combat money laundering and terrorism financing.

This call was made on Tuesday in Dakar, Senegal, during GIABA’s annual briefing session for ECOWAS ambassadors and development partners, which also featured its 2024 Annual Report.

The report outlined GIABA’s key achievements during 2024, urging ECOWAS states to intensify the implementation of Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) measures.

Established in 2000 by ECOWAS, GIABA is a specialised institution mandated to coordinate regional responses to economic and financial crimes. It was created as a show of political will to combat money laundering and terrorism financing.

According to the report, terrorist groups in the Sahel and Lake Chad Basin exploit unregulated financial systems and porous borders to fund their activities.

It also highlighted mobile money and virtual currencies, when unregulated, as new avenues for money laundering and terrorism financing.

GIABA’s director-general, Edwin Harris, said tangible progress has been achieved in strengthening regional AML/CFT frameworks.

He noted practical steps to promote the adoption of AML/CFT measures among member states, including support for legal and regulatory reforms, national AML/CFT strategies, and creation of Inter-Ministerial Committees to enhance national coordination.

Other measures include strengthening Financial Intelligence Units (FIUs), capacity building for key agencies, and publication of research and typology reports.

Among these are studies on small arms trafficking and a regional assessment of tax fraud-related laundering activities.

Mr Harris also confirmed the completion of GIABA’s second round of mutual evaluations, noting varying levels of compliance but ongoing efforts to prepare for the third cycle.

The Doyen of ECOWAS envoys, represented by Hermínio Moniz, Cabo Verde’s ambassador to Senegal, stressed that development cannot be sustained without tackling financial crimes.

He also underlined the vital role of the media in raising awareness and supporting the fight against money laundering and terrorism financing.

Sandra Oulate, director of the ECOWAS Gender Development Centre (EGDC), praised GIABA’s role in safeguarding financial systems, highlighting the broader social consequences of illicit flows.

She called for deeper collaboration between GIABA and EGDC, stressing that financial crime prevention must align with inclusive and equitable development.

“Empowering women and youth, strengthening families, and promoting equal opportunities are vital for building resilient societies,” she added.

Money laundering remains a major threat to West Africa’s financial stability, with weak regulation, corruption, and cash-based economies enabling the laundering of criminal proceeds.

Illicit funds are often laundered through real estate, cross-border cash movements, trade-based laundering, and informal financial systems.

Such flows weaken state institutions, finance organised crime and terrorism, and obstruct regional development.

(NAN)