Executive Summary
- Global human trafficking generates an estimated $450 billion annually, with West Africa identified as a key operational hub.
- The region’s heavy reliance on cash transactions in the informal economy hampers the ability of law enforcement to trace illicit funds.
- International bodies estimate that 49.6 million people are currently victims of modern slavery worldwide.
- Officials note that women play dual roles in the trade, appearing as both victims and active perpetrators managing logistics.
- Experts urge the implementation of cashless policies and digital financial inclusion to combat money laundering.
West Africa’s predominantly cash-based informal economy has become a critical enabler for the global human trafficking industry, a sector now generating an estimated $450 billion annually, according to disclosures made by regional financial intelligence officials at a forum in Lagos.
Speaking at the GIABA-ECOWAS Gender Development Centre Regional Forum on Women and Transnational Organised Crime, Edwin Harris, Director-General of the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), highlighted the region’s susceptibility to illicit financial flows. Represented by Dr. Jeffery Isima, the Acting Director of Policy and Research, Harris stated that the region’s reliance on physical cash for transactions allows trafficking networks to evade detection within the formal banking system.
"Traffickers do not only exploit the people’s resources. They also exploit our weak financial systems," Harris said. He noted that in many parts of West Africa, high-value transactions, such as vehicle purchases, are frequently conducted in cash. This practice obscures the financial trail, making it difficult for authorities to track the movement of illicit funds or identify the beneficiaries of criminal enterprises.
Data cited from the International Labour Organization (ILO) and the United Nations indicates that approximately 49.6 million people are currently held in modern slavery worldwide, including 12 million children. The informal market, driven by poverty and unemployment, provides a fertile environment for these networks to operate. "Informality and cash transactions facilitate money laundering and other financial crimes because it is difficult to combat crime in such an environment," Harris explained.
The Director-General also addressed the complex dynamics of the trade, noting that while women and children constitute a significant portion of victims, women are also increasingly identified as active participants. Harris described instances where women voluntarily manage the recruitment of young girls from rural communities and oversee their exploitation in destination countries, effectively monopolizing parts of the criminal process.
Hafsat Bakari, Director-General of the Nigerian Financial Intelligence Unit, represented by Mrs. Biola Shotunde, emphasized the financial mechanics behind the trade. "Behind every trafficked victim lies a defined financial trade: payments for recruitment, transportation, project documentation, accommodation, and exploitation," Bakari stated. She added that proceeds are laundered through various channels, including mobile money platforms, shell companies, and increasingly, cryptocurrency.
Financial Oversight Challenges
The correlation between West Africa’s informal economy and transnational organized crime presents a significant regulatory hurdle for regional governments. While officials are advocating for enhanced financial inclusion and cashless policies to improve traceability, the entrenched cultural and economic reliance on cash suggests that structural reform will be a long-term endeavor. Effective intervention will likely require a coordinated approach that integrates anti-money laundering tools directly into the payment systems used by the informal sector, ensuring that the financial infrastructure can no longer be easily weaponized by trafficking syndicates.
