GCFFC Africa
Regional WG tackling IFFs, TBML, and TF in Africa. Focuses on quantifying IFFs linked to crime, understanding TBML in African contexts, and identifying terrorist financing typologies involving trade, resources, and trafficking.
About
Ongoing
The GCFFC Africa Chapter has identified several immediate priorities that require targeted research, collaboration, and policy recommendations. Three key areas have been selected for the establishment of dedicated working groups to address financial crime threats specific to the African continent.
1. Illicit Financial Flows (IFFs) Related to Financial Crime:
Africa is estimated to have lost more than USD 1 trillion through illicit financial flows over the last 50 years. These flows arise from diverse sources: revenues from illegal activities, tax avoidance, trade mis-invoicing, corruption, and abusive profit-shifting. They undermine sustainable development by diverting resources from social investment and fiscal stability. Target 16.4 of the UN Sustainable Development Goals (SDGs) acknowledges the significance of curbing IFFs.
The African Chapter will focus on understanding the subset of these IFFs that are directly related to financial crime—particularly how they are structured, routed, and disguised. This includes working to develop metrics and policy responses tailored to African financial ecosystems.
2. Trade-Based Money Laundering (TBML):
TBML remains a primary method for laundering illicit funds and facilitating transnational crime. It involves manipulating trade transactions to disguise and move criminal proceeds. In the African context, the lack of data transparency, complex customs environments, and reliance on informal trade routes make TBML particularly difficult to detect and disrupt.
The Working Group will examine the mechanics of TBML in Africa—identifying high-risk corridors, typologies, and patterns. This work complements the IFF focus by helping distinguish between legal and illegal trade flows. It will also feed into broader policy frameworks aiming to strengthen customs and financial oversight.
3. Terrorist Financing (TF):
The GCFFC Africa Chapter will examine regional terrorist financing threats, focusing on how terrorism is funded through:
Illicit trade (e.g., wildlife, timber, minerals)
Human trafficking and smuggling
Arms and drug trafficking
Use of informal financial systems
This work will consider Sub-Saharan Africa (SSA) and other high-risk regions. It will involve partnerships with key institutions like the Institute for Security Studies (ISS) and INTERPOL, ensuring that the work leads to practical outcomes beyond awareness-raising.
Key Deliverables:
Each sub-working group will generate tailored insights, threat assessments, and recommendations for domestic policymakers, financial institutions, law enforcement, and international partners. These outputs will form part of the broader GCFFC Africa Chapter’s contribution to the global fight against financial crime.