|
|
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Chad is a not a regional financial center. It is largely a cash
economy with minimal transactions passing through financial
institutions. The lack of sophisticated financial products makes the
country relatively unattractive to money launderers and terrorist
financiers. There is little indication of money laundering or
terrorist financing within Chad although government officials are
aware of the threat and desire stronger legal tools to address it.
Corruption is a significant problem in Chad.
Chad has several different types of smuggling. Along the borders
that surround the lower two-thirds of the country, the smuggled
goods market consists largely of basic foodstuffs, cigarettes, fuel,
and household items smuggled to avoid import duties. Across the
country's northern third, which is sparsely populated and
transected by historic Sahelian trade routes, smuggled items are
generally more illicit, including drugs and weapons. These items
generally transit Chad and are not destined for domestic use.
Since the smuggled household goods are for domestic use in a
cash economy and the country does not have a significant
domestic illegal drug problem, there is no indication that this
market is financed by proceeds from narcotics or other illicit
activities. Similarly, end users for smuggled drugs and weapons
are not domestic, and proceeds of these activities do not enter
Chad's financial system.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: List approach
Legal persons covered: criminally: YES civilly: NO
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: NO
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Commercial banks
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Commercial banks
Number of STRs received and time frame: Not available
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: None
Convictions: None
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: YES
Chad is not a member of a Financial Action Task Force (FATF)-
style regional body.
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
Chad is a member of the six-country Central African Economic and
Monetary Union (CEMAC). Within CEMAC, there is the Banking
Commission of Central Africa (COBAC) and the Action Group
against Money Laundering in Central Africa (GABAC). Although a
FATF-style regional body does not cover the region, GABAC is
working with banks and member states to ensure implementation
of international standards through two formalized relationships.
GABAC works directly with the National Financial Investigative
Agency (ANIF) in each member state. GABAC also engages with
all banking institutions to urge them to become members of
COBAC and then ensures the banks are implementing and
enforcing due diligence procedures, as outlined in the
international standards.
Chad ranks 171 out of 178 countries surveyed in Transparency
International’s 2010 Corruption Perception Index. Law
enforcement and customs need training in financial crimes
enforcement. Chad should become a party to the UN Convention
against Corruption.
____________________________________________________
US State Dept Narcotics Report 2012:
Chad is not a significant producer of organic or synthetic drugs.
However, due to extremely porous borders, Chad’s territory is
susceptible to exploitation by drug traffickers. Most drugs entering
Chad arrive from Cameroon, Niger, Nigeria, and the Central
African Republic, and transit the country en route to Sudan,
Egypt, and Libya. Chad is a party to the 1988 UN Drug
Convention. Chad is also a party to the UN Convention against
Transnational Organized Crime.
Chad imposes significant penalties for the illegal use or trafficking
of illicit narcotics. In May 2010, the GOC created the Directorate
of National Drug Control within the Chadian National Police to
oversee all anti-drug operations. This unit's mandate includes
reducing illegal production, trafficking, and use of drugs. A key
challenge for the Directorate in curbing the trafficking of drugs is
controlling Chad’s porous and poorly controlled borders. A
secondary challenge is inadequate funding for training and
equipping the unit’s staff. A lack of effective communication
among law enforcement and security agencies also hinders
reporting and tracking of drugs trafficking through Chad. Due to
lack of communication among its various law enforcement and
security elements and/or formal reporting mechanisms on
seizures, specific data on overall drug seizures is impossible to
obtain. Occasional seizures have been reported during 2011 at
more than 100 kg for cocaine. Total seizures of cocaine and other
drugs are likely to have been even higher. Large shipments of
hashish and other drugs, for example, have been seized in the
northern Chadian region of Bourkou, Ennedi and Tibesti (B.E.T).
The drugs transiting this area follow centuries old trade and
smuggling routes traversing northern Sudan and into Egypt.
Seizures in this area are a result of Chadian military efforts to
monitor the most commonly travelled paths through the B.E.T.
These drug shipments are mostly destined for Egypt for eventual
transit to the Middle East.
In late 2011, the government of Chad (GOC) prohibited the sale of
pharmaceutical products in local markets as a measure against
diversion and licit drug abuse. Subsequently, the National Police
conducted an operation against pharmaceuticals being sold
openly and illegally in three of the capital’s main markets.
Pharmaceuticals being offered for sale were confiscated by the
police and destroyed. This resulted in a skirmish in one market
between law enforcement officials and merchants, which ended in
the death of at least one Chadian law enforcement official.
The Director General of the Pharmaceuticals Department, under
the Ministry of Health, is responsible for ensuring that hospitals,
pharmacies etc., make use of appropriate safeguards to control
the storage and dispensing of all licit narcotic medicines. Abuse of
synthetic licit and illicit pharmaceuticals such as tranquilizers and
stimulants occurs mostly among the young adult community.
Inhalants are also abused to some degree as they provide a
cheaper form of intoxication for some. Counterfeit
pharmaceuticals are widespread; most counterfeit
pharmaceuticals are illegally manufactured in Nigeria and
smuggled into Chad; other pharmaceutical preparations are
legally imported into Chad, but then diverted and sold on the
black market.
Many seizures, both large and small, are a result of vehicle
accident investigations. Police report that they often discover the
root cause of automobile or motorcycle accidents to be drivers
trying to operate vehicles under the influence of drugs.
Some Chadian schools participate in anti-drug campaigns, with
primary and secondary school students receiving annual anti-
drug education. Additionally, all Chadian National Police,
Gendarmes, and Army recruits receive drug awareness training
as part of their basic induction courses. While Chadian society
generally condemns drug abuse, society supports government
efforts to provide treatment programs for those who become
addicted. Near the capital city of N'Djamena, the GOC operates a
hospital for the treatment of addicted persons. The program is
rudimentary, but those participating voluntarily are not prosecuted
for narcotic offenses by the authorities.
The GOC makes a serious effort to control drug production,
reduce trafficking, and curb illegal use of drugs. The most positive
element of this campaign has been the creation of the Directorate
of National Drug Control within the police system specifically
tasked to tackle these issues. The system for regulation of
legitimate drugs dispensed by hospitals and pharmacies is also
well-designed and administered, but in a poor country with few
doctors, it is hard to keep dangerous drugs under prescription
control. Government-funded drug treatment and drug awareness
programs, while basic, are available.
In order to more effectively stem the flow of drugs trafficked
through Chad, the GOC must better equip the anti-drug
Directorate and other enforcement units such as customs and
border inspection, as well as ensure more standardized and
coordinated reporting of seizures, so progress can be measured,
and enforcement resources used to best effect. Officers
inspecting vehicles entering Chad from Cameroon do not have
basic narcotic detection tools, such as field test kits or drug-
detection dogs, to help identify and test suspicious substances-a
clear need for them to be effective. Additional constraints include
a limited number of officers to control vast and sparsely populated
border areas, and insufficient professional training and
equipment. As a matter of government policy, the government of
Chad does not encourage or facilitate illicit production or
distribution of narcotic or psychotropic drugs or other controlled
substances, or the laundering of proceeds from illegal drug
transactions.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2 Watch List)
Chad is a source and destination country for children subjected to
conditions of forced labor and sex trafficking. The country’s
trafficking problem is primarily internal and frequently involves
family members entrusting children to relatives or intermediaries
in return for promises of education, apprenticeship, goods, or
money. Selling or bartering children into forced domestic service
or forced herding is used as a means of survival by families
seeking to reduce the number of mouths they need to feed. Child
trafficking victims are primarily subjected to forced labor as
herders, domestic servants, agricultural laborers, or beggars.
Some sources report that children in religious schools
(madrassahs) are forced to beg for long hours for the benefit of
their teachers and may be denied food or physically punished if
they do not collect enough money. Child cattle herders – some of
whom are victims of forced labor – follow traditional routes for
grazing cattle and at times cross ill-defined international borders
into Cameroon, the Central African Republic (CAR), and Nigeria.
There continue to be reports of child herders being employed by
military officials or local government officials. Underage Chadian
girls travel to larger towns in search of work, where some are
subsequently subjected to prostitution or are abused in domestic
service. Some girls are compelled to marry against their will, only
to be forced by their husbands into domestic service or
agricultural labor.
In previous years, Chadian and Sudanese children were
unlawfully conscripted, including from refugee camps, to engage
in armed conflict, and used as combatants, guards, cooks, and
look-outs. The government’s conscription of children for military
service, however, reportedly ceased during the reporting period,
and a government-led, UNICEF-coordinated process to identify
and demobilize remaining child soldiers in military installations and
rebel camps continued. An unknown number of children may
remain within the ranks of the Chadian National Army (ANT);
UNICEF believes the number to be decreasing as recruitment has
stopped and remaining children who might have been in the
military in previous years would now be reaching adulthood.
Sudanese children in refugee camps in eastern Chad were
forcibly recruited by Sudanese rebel groups.
The Government of Chad does not fully comply with the minimum
standards for the elimination of trafficking; however, it is making
significant efforts to do so. Despite some improvements, the
government did not show evidence of increasing efforts over the
previous year; therefore, Chad is placed on Tier 2 Watch List.
During the reporting period, the Government of Chad reportedly
ended all child conscription into its national army and continued to
engage in efforts to demobilize remaining child soldiers from rebel
forces. The government also co-hosted a conference on child
soldiers, at which Chad and five other countries signed a
declaration committing to ending child soldiering in their countries.
By the end of the reporting period, the government and UNICEF
had finalized a UN Children and Armed Conflict Action Plan with
steps for Chad to take prior to being delisted from the UN state
sponsors of child soldiers list. The government, however, made
fewer efforts to address the forced labor of children in cattle
herding, domestic service, and begging, or to combat the
commercial sexual exploitation of Chadian children. The
government did not enact legislation prohibiting trafficking in
persons. The government undertook limited anti-trafficking law
enforcement and victim protection activities. The country faces
severe challenges including lack of communication and
infrastructure and a rudimentary judicial system that relies largely
on traditional forms of justice. Its resources are further
constrained by the large numbers of refugees from neighboring
states.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
No report available
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
Chad is a not a regional financial center. It is largely a cash
economy with minimal transactions passing through financial
institutions. The lack of sophisticated financial products makes the
country relatively unattractive to money launderers and terrorist
financiers. There is little indication of money laundering or
terrorist financing within Chad although government officials are
aware of the threat and desire stronger legal tools to address it.
Corruption is a significant problem in Chad.
Chad has several different types of smuggling. Along the borders
that surround the lower two-thirds of the country, the smuggled
goods market consists largely of basic foodstuffs, cigarettes, fuel,
and household items smuggled to avoid import duties. Across the
country's northern third, which is sparsely populated and
transected by historic Sahelian trade routes, smuggled items are
generally more illicit, including drugs and weapons. These items
generally transit Chad and are not destined for domestic use.
Since the smuggled household goods are for domestic use in a
cash economy and the country does not have a significant
domestic illegal drug problem, there is no indication that this
market is financed by proceeds from narcotics or other illicit
activities. Similarly, end users for smuggled drugs and weapons
are not domestic, and proceeds of these activities do not enter
Chad's financial system.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: List approach
Legal persons covered: criminally: YES civilly: NO
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: NO
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Commercial banks
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Commercial banks
Number of STRs received and time frame: Not available
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: None
Convictions: None
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: YES
Chad is not a member of a Financial Action Task Force (FATF)-
style regional body.
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
Chad is a member of the six-country Central African Economic and
Monetary Union (CEMAC). Within CEMAC, there is the Banking
Commission of Central Africa (COBAC) and the Action Group
against Money Laundering in Central Africa (GABAC). Although a
FATF-style regional body does not cover the region, GABAC is
working with banks and member states to ensure implementation
of international standards through two formalized relationships.
GABAC works directly with the National Financial Investigative
Agency (ANIF) in each member state. GABAC also engages with
all banking institutions to urge them to become members of
COBAC and then ensures the banks are implementing and
enforcing due diligence procedures, as outlined in the
international standards.
Chad ranks 171 out of 178 countries surveyed in Transparency
International’s 2010 Corruption Perception Index. Law
enforcement and customs need training in financial crimes
enforcement. Chad should become a party to the UN Convention
against Corruption.
____________________________________________________
US State Dept Narcotics Report 2012:
Chad is not a significant producer of organic or synthetic drugs.
However, due to extremely porous borders, Chad’s territory is
susceptible to exploitation by drug traffickers. Most drugs entering
Chad arrive from Cameroon, Niger, Nigeria, and the Central
African Republic, and transit the country en route to Sudan,
Egypt, and Libya. Chad is a party to the 1988 UN Drug
Convention. Chad is also a party to the UN Convention against
Transnational Organized Crime.
Chad imposes significant penalties for the illegal use or trafficking
of illicit narcotics. In May 2010, the GOC created the Directorate
of National Drug Control within the Chadian National Police to
oversee all anti-drug operations. This unit's mandate includes
reducing illegal production, trafficking, and use of drugs. A key
challenge for the Directorate in curbing the trafficking of drugs is
controlling Chad’s porous and poorly controlled borders. A
secondary challenge is inadequate funding for training and
equipping the unit’s staff. A lack of effective communication
among law enforcement and security agencies also hinders
reporting and tracking of drugs trafficking through Chad. Due to
lack of communication among its various law enforcement and
security elements and/or formal reporting mechanisms on
seizures, specific data on overall drug seizures is impossible to
obtain. Occasional seizures have been reported during 2011 at
more than 100 kg for cocaine. Total seizures of cocaine and other
drugs are likely to have been even higher. Large shipments of
hashish and other drugs, for example, have been seized in the
northern Chadian region of Bourkou, Ennedi and Tibesti (B.E.T).
The drugs transiting this area follow centuries old trade and
smuggling routes traversing northern Sudan and into Egypt.
Seizures in this area are a result of Chadian military efforts to
monitor the most commonly travelled paths through the B.E.T.
These drug shipments are mostly destined for Egypt for eventual
transit to the Middle East.
In late 2011, the government of Chad (GOC) prohibited the sale of
pharmaceutical products in local markets as a measure against
diversion and licit drug abuse. Subsequently, the National Police
conducted an operation against pharmaceuticals being sold
openly and illegally in three of the capital’s main markets.
Pharmaceuticals being offered for sale were confiscated by the
police and destroyed. This resulted in a skirmish in one market
between law enforcement officials and merchants, which ended in
the death of at least one Chadian law enforcement official.
The Director General of the Pharmaceuticals Department, under
the Ministry of Health, is responsible for ensuring that hospitals,
pharmacies etc., make use of appropriate safeguards to control
the storage and dispensing of all licit narcotic medicines. Abuse of
synthetic licit and illicit pharmaceuticals such as tranquilizers and
stimulants occurs mostly among the young adult community.
Inhalants are also abused to some degree as they provide a
cheaper form of intoxication for some. Counterfeit
pharmaceuticals are widespread; most counterfeit
pharmaceuticals are illegally manufactured in Nigeria and
smuggled into Chad; other pharmaceutical preparations are
legally imported into Chad, but then diverted and sold on the
black market.
Many seizures, both large and small, are a result of vehicle
accident investigations. Police report that they often discover the
root cause of automobile or motorcycle accidents to be drivers
trying to operate vehicles under the influence of drugs.
Some Chadian schools participate in anti-drug campaigns, with
primary and secondary school students receiving annual anti-
drug education. Additionally, all Chadian National Police,
Gendarmes, and Army recruits receive drug awareness training
as part of their basic induction courses. While Chadian society
generally condemns drug abuse, society supports government
efforts to provide treatment programs for those who become
addicted. Near the capital city of N'Djamena, the GOC operates a
hospital for the treatment of addicted persons. The program is
rudimentary, but those participating voluntarily are not prosecuted
for narcotic offenses by the authorities.
The GOC makes a serious effort to control drug production,
reduce trafficking, and curb illegal use of drugs. The most positive
element of this campaign has been the creation of the Directorate
of National Drug Control within the police system specifically
tasked to tackle these issues. The system for regulation of
legitimate drugs dispensed by hospitals and pharmacies is also
well-designed and administered, but in a poor country with few
doctors, it is hard to keep dangerous drugs under prescription
control. Government-funded drug treatment and drug awareness
programs, while basic, are available.
In order to more effectively stem the flow of drugs trafficked
through Chad, the GOC must better equip the anti-drug
Directorate and other enforcement units such as customs and
border inspection, as well as ensure more standardized and
coordinated reporting of seizures, so progress can be measured,
and enforcement resources used to best effect. Officers
inspecting vehicles entering Chad from Cameroon do not have
basic narcotic detection tools, such as field test kits or drug-
detection dogs, to help identify and test suspicious substances-a
clear need for them to be effective. Additional constraints include
a limited number of officers to control vast and sparsely populated
border areas, and insufficient professional training and
equipment. As a matter of government policy, the government of
Chad does not encourage or facilitate illicit production or
distribution of narcotic or psychotropic drugs or other controlled
substances, or the laundering of proceeds from illegal drug
transactions.
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 2 Watch List)
Chad is a source and destination country for children subjected to
conditions of forced labor and sex trafficking. The country’s
trafficking problem is primarily internal and frequently involves
family members entrusting children to relatives or intermediaries
in return for promises of education, apprenticeship, goods, or
money. Selling or bartering children into forced domestic service
or forced herding is used as a means of survival by families
seeking to reduce the number of mouths they need to feed. Child
trafficking victims are primarily subjected to forced labor as
herders, domestic servants, agricultural laborers, or beggars.
Some sources report that children in religious schools
(madrassahs) are forced to beg for long hours for the benefit of
their teachers and may be denied food or physically punished if
they do not collect enough money. Child cattle herders – some of
whom are victims of forced labor – follow traditional routes for
grazing cattle and at times cross ill-defined international borders
into Cameroon, the Central African Republic (CAR), and Nigeria.
There continue to be reports of child herders being employed by
military officials or local government officials. Underage Chadian
girls travel to larger towns in search of work, where some are
subsequently subjected to prostitution or are abused in domestic
service. Some girls are compelled to marry against their will, only
to be forced by their husbands into domestic service or
agricultural labor.
In previous years, Chadian and Sudanese children were
unlawfully conscripted, including from refugee camps, to engage
in armed conflict, and used as combatants, guards, cooks, and
look-outs. The government’s conscription of children for military
service, however, reportedly ceased during the reporting period,
and a government-led, UNICEF-coordinated process to identify
and demobilize remaining child soldiers in military installations and
rebel camps continued. An unknown number of children may
remain within the ranks of the Chadian National Army (ANT);
UNICEF believes the number to be decreasing as recruitment has
stopped and remaining children who might have been in the
military in previous years would now be reaching adulthood.
Sudanese children in refugee camps in eastern Chad were
forcibly recruited by Sudanese rebel groups.
The Government of Chad does not fully comply with the minimum
standards for the elimination of trafficking; however, it is making
significant efforts to do so. Despite some improvements, the
government did not show evidence of increasing efforts over the
previous year; therefore, Chad is placed on Tier 2 Watch List.
During the reporting period, the Government of Chad reportedly
ended all child conscription into its national army and continued to
engage in efforts to demobilize remaining child soldiers from rebel
forces. The government also co-hosted a conference on child
soldiers, at which Chad and five other countries signed a
declaration committing to ending child soldiering in their countries.
By the end of the reporting period, the government and UNICEF
had finalized a UN Children and Armed Conflict Action Plan with
steps for Chad to take prior to being delisted from the UN state
sponsors of child soldiers list. The government, however, made
fewer efforts to address the forced labor of children in cattle
herding, domestic service, and begging, or to combat the
commercial sexual exploitation of Chadian children. The
government did not enact legislation prohibiting trafficking in
persons. The government undertook limited anti-trafficking law
enforcement and victim protection activities. The country faces
severe challenges including lack of communication and
infrastructure and a rudimentary judicial system that relies largely
on traditional forms of justice. Its resources are further
constrained by the large numbers of refugees from neighboring
states.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
No report available
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
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| CHAD |
| KnowYourCountry |
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| Last Updated: 16 April 2012 |