The African Development Bank (AfDB) and the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) have jointly inaugurated a new three-year project aimed at combating money laundering and terrorism financing across member countries.

Entitled “Capacity Development for Anti-Money Laundering and Countering the Financing of Terrorism in GIABA Member States in Transition,” the initiative has received substantial support from the African Development Bank Group, with a $5 million grant earmarked for its implementation.

The launch event, convened in Dakar, Senegal, brought together personnel from both organizations, delegates from beneficiary nations within GIABA, and representatives from Senegal’s Financial Intelligence Unit. Representing their respective institutions were Mohamed Cherif, African Development Bank Country Manager for Senegal, and Edwin Harris, Jr., Director General of GIABA.

This project will be financed through a grant from the Transition Support Facility of the African Development Bank, totaling 3.5 million UA (equivalent to approximately $5 million).

It aims to bolster resilience in the West African region by enhancing anti-money laundering and terrorism financing frameworks and by enhancing the capacity of GIABA member states, with a particular emphasis on nations undergoing transition.

Meanwhile, the initiative reflects the Bank Group’s strategic commitment to promoting economic governance and preventing illicit financial flows across the continent.

The grant, which aligns with the Bank Group’s strategic and operational engagements at both country and regional levels, underscores its dedication to addressing complex challenges such as money laundering and terrorism financing. It is also in harmony with the Bank’s policy and action plan on the Prevention of Illicit Financial Flows, as well as its broader Strategy for Economic Governance in Africa.

Collaborative Efforts

Mohamed Cherif, the African Development Bank Country Manager for Senegal, lauded the enduring partnership between GIABA and AfDB, highlighting collaborative efforts such as training sessions for member countries and the provision of technical assistance. This collaborative approach underscores the shared commitment of both organizations to combatting financial crimes and promoting economic stability in the region.

In response to the grant announcement, Edwin Harris, Jr., Director General of GIABA, expressed his satisfaction, emphasizing the timeliness of the financing. He noted that the support comes at a crucial juncture, enabling GIABA to implement its strategic plan for the years 2023 to 2027 effectively.

The funding will facilitate targeted interventions aimed at strengthening anti-money laundering and terrorism financing regimes across member countries, thereby enhancing regional security and stability.

It’s worth noting that the African Development Bank holds observer status within GIABA and regularly consults the organization as a key stakeholder in the development of its policies, strategies, and action plans related to illicit financial flows, anti-money laundering, and economic governance. This collaborative approach underscores the importance of partnerships and multi-stakeholder engagement in addressing complex challenges facing the continent.

As West Africa continues its efforts to combat money laundering and terrorism financing, the African Development Bank’s support represents a significant step towards enhancing regional cooperation, capacity building, and institutional strengthening. By working hand in hand with organizations like GIABA, the Bank aims to foster a secure and prosperous future for all citizens of the region.

The Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), is a specialised institution of the Economic Community of West African States responsible for facilitating the adoption and implementation of Anti-money Laundering (AML) and Combating the Financing of Terrorism (CFT) in West Africa. It works with states in the region to ensure compliance with international AML/CFT standards. GIABA was established in 2000 and has its headquarters in Dakar, Senegal.