GIABA Flags Extractive Sector for Illicit Financial Flows

The Inter Governmental Action Group against Money Laundering in West Africa (GIABA) has flagged the extractive sector as a primary source of illicit financial flows in the region. During a regional training for journalists on investigative reporting of economic and financial crimes in Ghana, Director General Mam Cherno Jallow, represented by acting Principal Officer Mr Timothy Melaye, warned that high-level corruption, misuse of virtual assets, drug trafficking, and weak regulatory oversight are exacerbating money laundering risks.

Jallow emphasized that the region faces evolving threats related to Money Laundering (ML), Terrorist Financing (TF), and Proliferation Financing (PF), with the extractive sector being particularly vulnerable. He noted that GIABA has been assisting member states in strengthening their legal and institutional frameworks to align with Financial Action Task Force (FATF) standards, including the establishment of Financial Intelligence Units and promoting beneficial ownership disclosure to enhance financial transparency.