Money laundering and terrorist financing continue to threaten the stability and growth of West Africa, placing democratic institutions, financial integrity, and regional security at risk. Despite ongoing efforts by regional governments and international agencies, criminals remain adept at exploiting regulatory gaps, complex cross-border networks, and insufficient enforcement. As the fight against financial crime becomes more sophisticated, a new movement is emerging across the region, emphasizing resilient partnerships among civil society organizations, policymakers, and international development actors.

Across West Africa, the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) is at the center of these developments, spearheading capacity-building, strategic advocacy, and multisectoral cooperation. This article analyzes why robust collaboration, funding, and community engagement are now seen as the most effective weapons against illicit finance and highlights the regulatory foundations, recent developments, and future outlook for the region’s AML/CFT ecosystem.

Strengthening AML/CFT Partnerships in West Africa

The reality of money laundering in West Africa is deeply intertwined with political, social, and economic challenges. Transnational criminal networks take advantage of porous borders, cash-based economies, and gaps in the banking sector’s due diligence. Terrorist groups and traffickers exploit these vulnerabilities to move funds, launder criminal proceeds, and undermine governance.

To address this, GIABA, a specialized institution of the Economic Community of West African States (ECOWAS), was created in 2000 with the mandate to strengthen AML/CFT frameworks and promote regional cooperation. GIABA operates as the FATF-style regional body for West Africa, conducting mutual evaluations, supporting legislative reforms, and facilitating dialogue between member states.

Over the past decade, GIABA’s partnership-driven approach has evolved, emphasizing the need to mobilize not only governments and financial institutions but also civil society. Civil society organizations (CSOs) are uniquely positioned to reach grassroots communities, raise awareness about the dangers of money laundering, and hold public officials accountable. Their advocacy drives policy reforms and helps ensure AML/CFT measures do not become merely box-ticking exercises but instead deliver genuine impact.

GIABA’s 2025 initiative, which will see $300,000 distributed among 12 CSOs, is part of this ongoing strategy to build a network of local champions. By funding advocacy on asset recovery, beneficial ownership transparency, and financial literacy, GIABA hopes to foster an environment where all stakeholders can contribute to disrupting illicit financial flows.

The Evolving Legal and Regulatory Landscape

The fight against financial crime in West Africa is shaped by a complex legal and regulatory landscape. Every ECOWAS member state is required to have comprehensive anti-money laundering and counter-financing of terrorism laws that meet the standards set out in the Financial Action Task Force (FATF) 40 Recommendations and United Nations conventions such as the UN Convention against Transnational Organized Crime and the International Convention for the Suppression of the Financing of Terrorism.

Several countries have updated their AML/CFT laws in recent years to address emerging risks. For example:

• Nigeria’s Money Laundering (Prevention and Prohibition) Act 2022 and the Terrorism (Prevention and Prohibition) Act 2022 introduced stronger KYC, CDD, and asset confiscation provisions, and established new obligations for non-profit organizations.
• Ghana’s Anti-Money Laundering Act, 2020 (Act 1044) and associated regulations now require improved beneficial ownership registers and reporting from financial institutions.
• Senegal, Côte d’Ivoire, and other WAEMU states have adopted new directives under the West African Economic and Monetary Union to harmonize AML/CFT requirements, especially for cross-border remittance service providers.

Despite progress, the most recent GIABA mutual evaluation reports highlight persistent challenges: insufficient enforcement, under-resourced FIUs, low rates of asset recovery, and weak coordination between agencies. Corruption and political interference often hamper effective implementation. This is where the role of CSOs becomes crucial—not just as watchdogs but as partners in training, research, and public engagement.

The Power and Impact of Civil Society in Combating Financial Crime

As money laundering techniques evolve, so must the response. Civil society organizations across West Africa have stepped into the spotlight, leading educational campaigns, developing community reporting hotlines, and conducting independent research on high-risk sectors. They play a pivotal role in:

• Raising public awareness: Through seminars, media campaigns, and school programs, CSOs help citizens understand how illicit finance undermines development, security, and social trust.
• Advocacy for reform: By working closely with lawmakers and regulators, CSOs advocate for the adoption and enforcement of international AML/CFT standards, pushing for transparency in public procurement and asset declarations.
• Community engagement: CSOs provide platforms for whistleblowers and victims of financial crime, helping authorities identify emerging risks such as new forms of digital fraud and terrorist financing through informal channels.
• Capacity-building: Many organizations offer training to journalists, legal professionals, and local leaders, equipping them with the tools to detect and report suspicious activities.

GIABA’s support for these efforts, including the recent funding commitment, is designed to create a multiplier effect. Instead of isolated enforcement actions, the region is now seeing the emergence of networks—partnerships that can pool resources, share information, and innovate faster than criminal groups can adapt.

Challenges and Opportunities Ahead for West Africa’s AML/CFT Agenda

The road to a resilient AML/CFT ecosystem in West Africa is still long and fraught with obstacles. Among the most pressing challenges are:

• Financial inclusion vs. compliance: Many West African economies rely on informal financial systems and mobile money, which complicates traditional AML/CFT measures. Balancing access to finance with effective risk controls remains a policy dilemma.
• Cross-border coordination: Criminals do not respect borders, and the region’s frequent use of informal value transfer systems (IVTS) like hawala demands much stronger information sharing and joint investigations among countries.
• Technology and data gaps: Many FIUs and law enforcement agencies still lack advanced analytics tools, case management systems, and real-time intelligence sharing. This technological deficit is a major barrier to tracing complex money laundering schemes.
• Sustainability of funding: External support from development partners and donors is critical but cannot substitute for national ownership and budgetary commitment. Long-term impact depends on local resource mobilization and sustained investment in people and infrastructure.

Nevertheless, there are clear opportunities:

• The increasing engagement of CSOs and grassroots organizations is creating new feedback loops for policy evaluation and early warning.
• Emerging digital identity solutions and mobile transaction monitoring tools can support both financial inclusion and risk management.
• Ongoing peer reviews and mutual evaluations by GIABA, in line with the FATF process, are driving continuous improvement and accountability across the region.

Ultimately, resilient partnerships—spanning governments, CSOs, international agencies, and the private sector—will be the deciding factor in the region’s success against money laundering and terrorist financing.

Conclusion: Building a United Front Against Money Laundering in West Africa

Tackling money laundering in West Africa is not simply a matter of passing new laws or setting up task forces. It demands a fundamental change in how all parts of society work together. As GIABA’s initiatives show, empowering civil society, forging international partnerships, and investing in education and technology create the conditions for lasting progress. The fight is far from over, but the region now has a growing movement capable of meeting the challenge.

Sustainable progress will depend on expanding these partnerships, closing regulatory gaps, and ensuring every stakeholder—from government officials to local activists—has the tools and resources to play their part. As West Africa charts its path forward, resilient collaboration stands out as both the best defense and the engine for a more secure, transparent, and prosperous future.

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Related Links

• GIABA – Official Site
• FATF – Guidance for a Risk-Based Approach
• United Nations Office on Drugs and Crime – Anti-Money Laundering
• Nigeria Money Laundering (Prevention and Prohibition) Act 2022
• Ghana Anti-Money Laundering Act, 2020 (Act 1044)

Other FinCrime Central Articles About Stronger West-African Stance on AML/CFT

• West Africa’s Tangible Progress in Combating Money Laundering in 2025
• The Interpol-Africa Collaboration Is a Major Step in Transforming Financial Security

Source: The Guardian, by Cleopatra Eki

Some of FinCrime Central’s articles may have been enriched or edited with the help of AI tools. It may contain unintentional errors.

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