_________________________________________________________
US State Dept Narcotics Report 2012 (introduction):
Guinea-Bissau, a tiny impoverished country in West Africa, is a major
transit hub for narcotics trafficking from South America to Europe. The
country provides an opportune environment for traffickers because of its
lack of law enforcement capabilities, its demonstrated susceptibility to
corruption, its porous borders, its location in relation to Europe, South
America and neighboring West African transit points, and its linguistic
connections to Brazil, Portugal and Cape Verde. The un-policed islands
off the coast of Bissau are hubs for major drug trafficking from Latin
America. Corruption, specifically the complicity of government officials at
all levels in this criminal activity, inhibits both a complete assessment and
resolution of the problem. Guinea-Bissau has degenerated into a narco-
state despite the international community’s efforts to avoid such a
troubling development.
Guinea-Bissau has a population of 1.82 million persons. The country is
one of the poorest in the world, placing 176 out of 187 countries on the
United Nation’s 2011 Human Development Index. Security forces lack
the most basic resources, and civil servants are often not paid for
months at a time. Until September 2010, the country possessed no
adequate criminal detention facilities. Guinea-Bissau’s history since
independence from Portugal in 1974 has been characterized by political
instability, civil war, and continuous unrest. The U.S. Embassy in Bissau
suspended operations in June 1998 due to civil unrest. Relations and
cooperation between Guinea-Bissau and the United States are
conducted from the U.S. Embassy in Dakar Senegal.
President Malam Bacai Sanha was elected in July 2009 following the
assassination of President Joao Bernardo Vieira by the military.
International observers declared the 2009 elections to be free and fair.
On April 1, 2010 ex-Navy Chief of Staff Jose Americo Bubo Na Tchuto
and soldiers loyal to Deputy Defense Chief of Staff Antonio Indjai
detained Defense Chief of Staff Jose Zamora Induta and Prime Minister
Carlos Gomes. Gomes was released several days later, but Induta
remained in military detention without being formally charged until his
release on December 23. Na Tchuto was listed as a drug kingpin in April
2010 by the U.S. Department of Treasury due to his significant
involvement in international narcotics trafficking. In June 2010, Indjai was
appointed to the position of Defense Chief of Staff. In October 2010, Na
Tchuto was re-appointed as Chief of Staff of the Bissau-Guinean Navy.
Guinea-Bissau is a party to the 1988 UN Drug Convention.
For Full report, click here
_________________________________________________________
US State Dept Trafficking in Persons Report 2011 (introduction):
(Tier 3)
Guinea-Bissau is a country of origin for children subjected to forced
labor and sex trafficking. The focus of research on and remedies to
human trafficking in the country has been confined largely to child
trafficking; therefore, the scope of the problem of trafficking women or
men for forced labor or forced prostitution is unknown. Unscrupulous
marabouts (religious teachers), or their intermediaries, recruit boys
under the pretense of offering them a Koranic education, but
subsequently transport them to Senegal or, to a lesser extent, Mali or
Guinea, where they are forced to beg for money. Young boys are
increasingly sent to cities within Guinea-Bissau for the same purpose.
The most recent estimates available suggest that 200 children are taken
as talibes (students attending Koranic schools) from Guinea-Bissau and
forced into begging each month, and that nearly one-third of the 8,000
talibes begging on the streets of Dakar are from Guinea-Bissau. Men,
often former talibes from the regions of Bafata and Gabu, and generally
well-known within the communities in which they operate, are the
principal trafficking offenders. NGOs observed an increase in overall
trafficking during the past year, as well as incidences of previously
unobserved types of trafficking. Boys reportedly were transported to
southern Senegal for forced manual and agricultural labor, girls were
forced into domestic service in Bissau, the capital, and both boys and
girls were forced to work as street vendors in Bissau-Guinean and
Senegalese cities. Girls may be subjected to forced domestic service
and child prostitution in Senegal, including for exploitation by
international sex tourists, or lured to The Gambia and Lebanon with
promises of employment and subsequently placed in the sex trade.
The Government of Guinea-Bissau does not fully comply with the
minimum standards for the elimination of trafficking, and has been
placed on Tier 2 Watch List for the last four consecutive years.
Therefore, pursuant to Section 107 of the 2008 Trafficking Victims
Protection Reauthorization Act, Guinea-Bissau is deemed not to be
making significant efforts to comply with the minimum standards and is
placed on Tier 3. The government acknowledged that human trafficking
is a problem in the country and took steps to enact legislation outlawing
all forms of trafficking. It lacked a properly functioning judicial system and
did not pursue criminal action against trafficking offenders during the
year. Anti-trafficking awareness efforts apply the misleading phrase
“children in movement” in place of “trafficking”, in an attempt to avoid
backlash from religious communities. Police claimed to monitor the
activities of known trafficking perpetrators, but failed to initiate law
enforcement actions against them.
Recommendations for Guinea-Bissau: Enact legislation prohibiting all
forms of trafficking in persons; focusing first on Pirada and Sao
Domingos, transit towns on the border with Senegal, train law
enforcement officials and magistrates to use existing legislation to
investigate and prosecute trafficking offenses; ensure that efforts to hold
parents criminally liable for sending their children away with abusive
marabouts are accompanied by efforts to prosecute and convict the
marabouts who use talibes for forced begging; ensure that budget
allocations are designated to make two prisons fully operational with
furnishings and security staff to ensure that traffickers serve prison
sentences; implement the draft anti-trafficking national action plan;
undertake increased efforts to coordinate with NGOs to provide services
to trafficking victims; and, in partnership with NGOs, implement a public
awareness campaign warning families of prospective talibes about the
dangers of trafficking.
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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Sanctions:
6 May, 2012 - EU Council Regulation (EU) No 377/2012 of 3
May 2012 concerning restrictive measures directed against
certain persons, entities and bodies threatening the peace,
security or stability of the Republic of Guinea-Bissau
Read Regulation
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2012
Guinea-Bissau has repeatedly, over the past few years, been
called a ‘narco-state’. Although President Sanha has declared the
problem a top priority for his administration, the Government of
Guinea-Bissau (GOGB) is not in full compliance with international
conventions against money laundering and terrorist financing
because of inadequate resources, weak border controls, and
competing national priorities. The multitude of small offshore
islands and a military able to sidestep government with impunity
has made it a favorite trans-shipment point for drugs. Drug
barons from Latin America and their collaborators from the region
and other parts of the world have taken advantage of the extreme
poverty, unemployment, political instability, lack of effective
customs and law enforcement, and general insecurity to make the
country a major transit point for cocaine destined to consumer
markets, mainly in Europe. Of all West African countries, none
has been so thoroughly penetrated and corrupted by Latin
American drug cartels as Guinea-Bissau. One of the poorest
countries in the world, the value of the illicit narcotics trade in
Guinea-Bissau is much greater than its national income. Using
threats and bribes, drug traffickers infiltrate state structures and
operate with impunity.
The police have seized a number of major drug shipments in past
years, and representatives of the state have been linked to drug
trafficking networks. Some of the arrested traffickers and seized
drugs later vanished from the state’s prisons and coffers, with no
explanation forthcoming from the Bissau-Guinean authorities. A
major bank operating in Guinea-Bissau reportedly had significant
involvement in the laundering of proceeds from drug trafficking
between South America and Europe/the Middle East via Guinea-
Bissau.
The formal financial sector in Guinea-Bissau is undeveloped and
badly supervised. It is also dwarfed by the size of the informal and
cash sectors in addition to the underground economy. The
cohesion and effectiveness of the state itself is very poor: the
police are under-resourced and understaffed; corruption is a
major problem; and the judiciary has reportedly demonstrated a
lack of integrity on a number of occasions. Many government
offices, including the justice ministry, lack basic resources, such
as electricity, to function.
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: All crimes approach
Legal persons covered: criminally: YES civilly: YES
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
KYC covered entities: Banks, microfinance institutions, exchange
houses, securities firms, insurance companies, casinos,
brokerages, charities, nongovernmental organizations (NGOs),
and intermediaries such as lawyers, accountants, notaries and
broker/dealers
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: Not available
Number of CTRs received and time frame: Not available
STR covered entities: Banks, microfinance institutions, exchange
houses, securities firms, insurance companies, casinos,
brokerages, charities, nongovernmental organizations (NGOs),
and intermediaries such as lawyers, accountants, notaries and
broker/dealers
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: None
Convictions: None
Records exchange mechanism:
With U.S.: MLAT: NO Other mechanism: NO
With other governments/jurisdictions: NO
Guinea-Bissau is a member of the Intergovernmental Action
Group against Money Laundering in West Africa (GIABA), a
Financial Action Task Force-style regional body. Its most recent
mutual evaluation can be found here: http://www.giaba.org/index.
php?type=c&id=45&mod=2&men=2
Enforcement and Implementation Issues and Comments:
The Anti-Money Laundering Uniform Law, a required law for
members of the Economic Community of West African States
(ECOWAS), is not implemented effectively. There is still no
financial intelligence unit (FIU) in operation, making much of the
legislation unable to be implemented.
GOGB authorities expect to establish an FIU soon. The GOGB
should ensure resources are available to sustain the FIU’s
capacity and should put in place and train its staff. It also should
work to improve the training and capacity of its police and
judiciary to combat financial crimes. Guinea-Bissau needs
assistance to finance, staff, train and equip its justice and police
departments. Although the law establishes asset forfeiture
authorities and provides for the sharing of confiscated assets, a
lack of coordination mechanisms to seize assets and facilitate
requests for cooperation in freezing and confiscation from other
countries hampers cooperation.
Article 26 of National Assembly Resolution No. 4 of 2004
stipulates that if a bank suspects money laundering it must obtain
a declaration of all properties and assets from the subject and
notify the Attorney General, who must then appoint a judge to
investigate. The bank’s solicitation of an asset list from its client
could also amount to tipping off the subject. Reportedly, banks
are reluctant to file STRs because of the fear of tipping off by an
allegedly indiscrete judiciary.
Guinea-Bissau needs to improve the coordination of efforts at the
national, sub-regional, regional and international levels, reforming
the country's institutions. The GOGB should continue to work with
its partners in GIABA, ECOWAS and other organizations to
establish and implement an effective anti-money
laundering/counter-terrorist financing (AML/CFT) regime. The
government needs urgent help to restore sovereignty, administer
justice and regain control of its borders. The GOGB should
ensure the sectors covered by its AML law have implementing
regulations and competent authorities to ensure compliance with
the law‘s requirements. It should also amend its terrorist financing
law to comport with international standards. Guinea-Bissau should
undertake efforts to eradicate systemic corruption.
The GOGB should become a party to the UN Convention for the
Suppression of the Financing of Terrorism, and the UN
Conventions against Corruption and Transnational Organized
Crime.
6 May, 2012 - EU Council Regulation (EU) No 377/2012 of 3
May 2012 concerning restrictive measures directed against
certain persons, entities and bodies threatening the peace,
security or stability of the Republic of Guinea-Bissau
Read Regulation
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2012
Guinea-Bissau has repeatedly, over the past few years, been
called a ‘narco-state’. Although President Sanha has declared the
problem a top priority for his administration, the Government of
Guinea-Bissau (GOGB) is not in full compliance with international
conventions against money laundering and terrorist financing
because of inadequate resources, weak border controls, and
competing national priorities. The multitude of small offshore
islands and a military able to sidestep government with impunity
has made it a favorite trans-shipment point for drugs. Drug
barons from Latin America and their collaborators from the region
and other parts of the world have taken advantage of the extreme
poverty, unemployment, political instability, lack of effective
customs and law enforcement, and general insecurity to make the
country a major transit point for cocaine destined to consumer
markets, mainly in Europe. Of all West African countries, none
has been so thoroughly penetrated and corrupted by Latin
American drug cartels as Guinea-Bissau. One of the poorest
countries in the world, the value of the illicit narcotics trade in
Guinea-Bissau is much greater than its national income. Using
threats and bribes, drug traffickers infiltrate state structures and
operate with impunity.
The police have seized a number of major drug shipments in past
years, and representatives of the state have been linked to drug
trafficking networks. Some of the arrested traffickers and seized
drugs later vanished from the state’s prisons and coffers, with no
explanation forthcoming from the Bissau-Guinean authorities. A
major bank operating in Guinea-Bissau reportedly had significant
involvement in the laundering of proceeds from drug trafficking
between South America and Europe/the Middle East via Guinea-
Bissau.
The formal financial sector in Guinea-Bissau is undeveloped and
badly supervised. It is also dwarfed by the size of the informal and
cash sectors in addition to the underground economy. The
cohesion and effectiveness of the state itself is very poor: the
police are under-resourced and understaffed; corruption is a
major problem; and the judiciary has reportedly demonstrated a
lack of integrity on a number of occasions. Many government
offices, including the justice ministry, lack basic resources, such
as electricity, to function.
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: All crimes approach
Legal persons covered: criminally: YES civilly: YES
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
KYC covered entities: Banks, microfinance institutions, exchange
houses, securities firms, insurance companies, casinos,
brokerages, charities, nongovernmental organizations (NGOs),
and intermediaries such as lawyers, accountants, notaries and
broker/dealers
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: Not available
Number of CTRs received and time frame: Not available
STR covered entities: Banks, microfinance institutions, exchange
houses, securities firms, insurance companies, casinos,
brokerages, charities, nongovernmental organizations (NGOs),
and intermediaries such as lawyers, accountants, notaries and
broker/dealers
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: None
Convictions: None
Records exchange mechanism:
With U.S.: MLAT: NO Other mechanism: NO
With other governments/jurisdictions: NO
Guinea-Bissau is a member of the Intergovernmental Action
Group against Money Laundering in West Africa (GIABA), a
Financial Action Task Force-style regional body. Its most recent
mutual evaluation can be found here: http://www.giaba.org/index.
php?type=c&id=45&mod=2&men=2
Enforcement and Implementation Issues and Comments:
The Anti-Money Laundering Uniform Law, a required law for
members of the Economic Community of West African States
(ECOWAS), is not implemented effectively. There is still no
financial intelligence unit (FIU) in operation, making much of the
legislation unable to be implemented.
GOGB authorities expect to establish an FIU soon. The GOGB
should ensure resources are available to sustain the FIU’s
capacity and should put in place and train its staff. It also should
work to improve the training and capacity of its police and
judiciary to combat financial crimes. Guinea-Bissau needs
assistance to finance, staff, train and equip its justice and police
departments. Although the law establishes asset forfeiture
authorities and provides for the sharing of confiscated assets, a
lack of coordination mechanisms to seize assets and facilitate
requests for cooperation in freezing and confiscation from other
countries hampers cooperation.
Article 26 of National Assembly Resolution No. 4 of 2004
stipulates that if a bank suspects money laundering it must obtain
a declaration of all properties and assets from the subject and
notify the Attorney General, who must then appoint a judge to
investigate. The bank’s solicitation of an asset list from its client
could also amount to tipping off the subject. Reportedly, banks
are reluctant to file STRs because of the fear of tipping off by an
allegedly indiscrete judiciary.
Guinea-Bissau needs to improve the coordination of efforts at the
national, sub-regional, regional and international levels, reforming
the country's institutions. The GOGB should continue to work with
its partners in GIABA, ECOWAS and other organizations to
establish and implement an effective anti-money
laundering/counter-terrorist financing (AML/CFT) regime. The
government needs urgent help to restore sovereignty, administer
justice and regain control of its borders. The GOGB should
ensure the sectors covered by its AML law have implementing
regulations and competent authorities to ensure compliance with
the law‘s requirements. It should also amend its terrorist financing
law to comport with international standards. Guinea-Bissau should
undertake efforts to eradicate systemic corruption.
The GOGB should become a party to the UN Convention for the
Suppression of the Financing of Terrorism, and the UN
Conventions against Corruption and Transnational Organized
Crime.
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| GUINEA BISSAU |
| KnowYourCountry |
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| Last Updated: 6 May 2012 |