BY: JENNIFER ADDO-LARBI, A BROADCAST JOURNALIST.

http://gbcghana.com/index.php?id=1.167767#

COMMENTARY ON THE THREATS OF MONEY LAUNDERING, A TRANSNATIONAL CRIME AS GHANA PREPARES FOR THE EMERGING OIL AND GAS INDUSTRY

The discovery of oil in commercial quantity on the shores of Ghana has drawn the world’s attention to the country. Most investors are now looking for various sectors of the economy to invest in especially in the emerging oil industry.

As Ghana prepares to drill the oil, perhaps one area Government has to look at aside the numerous challenges is, the effect of economic crime such as Money Laundering.

Technological advancement and the globalization of communication, along with the world economic interdependence, have changed the social and political landscape of the globe.

Organised criminals take advantage of powerful instruments of technology and globalisation to perpetuate their unwholesome activities. Since criminals do not respect territorial boundaries, no country can be exempted from their nefarious activities.

Money laundering and to a limited extent, the Financing of Terrorism are not new in West Africa. Research has identified a number of money laundering cases, however, the financing of terrorism is beginning to rear its ugly head in some countries in the ECOWAS sub-region. As one of its major response and contribution to the fight against Money Laundering, ECOWAS established the Inter-Governmental Action Group against Money Laundering in West Africa, GIABA, in 2000.

GIABA’s mandate includes developing strategies to protect the economies of member states from abuse, engaging member states in forums to discuss matters of regional interest and improving measures to combat the laundering of proceeds of crime in West Africa. GIABA’s membership includes Ghana, Benin, Burkina Faso, Senegal, and Nigeria.

West Africa, a region considered as one of the poorest in the world, is further faced with a daunting challenge due to its vulnerability to transnational organised crime and limited capacity to respond effectively to this threat.

The continued support of ECOWAS to GIABA therefore is a demonstration of the strong commitment of the Member States to the fight crime, particularly Money Laundering and Terrorist Financing.

Money Laundering undermines sustainable development by eroding social and human capital, affecting social and political stability. These in turn cause the rise in the cost of business and eventually scare investors away.

The proceeds of crime fuel corruption and there is well-documented evidence that both Money Laundering and Terrorism financing are detrimental to world peace and security and could undermine the overall development of society.

No country can therefore take the issue of transnational organized crime for granted. This is the more reason why Ghana must be alert in fighting this canker.

Some may argue that this crime is not common in this part of the world and so cannot be considered a threat.

What one should not forget is that though this region is neither a producer nor a consumer of cocaine, traffickers from other regions have over the years used West Africa as a transit point for drug trafficking to Europe.

In the same way, perpetrators of Money Laundering and Terrorism financing can be done elsewhere using Africa as a transit point. This should serve as a wake up call to all governments in the ECOWAS sub-region, because they are obliged to protect the continent’s economies against criminal abuse, enhance the rule of law and at the same time deepen regional integration and maintain peace and security.

Member States, which of course include Ghana, must enforce laws on Economic Crime.

It is suggested that Ghana reviews her legislation relating to economic crime, especially now that it is about to receive an economic boost with the production of oil in commercial quantity. Personnel of security agencies must also be adequately equipped and motivated so that they do not fall into the corruption trap of the organised criminals.

Ghana has enormous opportunities to learn lessons from her neighbouring countries and take a bold step to fight organized crime.