Africa’s Stolen Wealth: The West’s Two-Faced War On Corruption, Condemning In Public, Laundering the Continent’s Future In Practice

While international bodies and Western governments publicly commit to combating illicit financial flows (IFFs) and money laundering, reports reveal that a significant portion of “dirty money” flowing out of Africa finds a haven in major Western financial centres and emerging non-Western hubs. A network of professional enablers and regulatory facilitates this. This allows the Global North to benefit from the proceeds of corruption and crime, thereby weakening Africa’s development despite public displays of anti-money laundering (AML) efforts.

Africa is losing an estimated US$88.6 billion annually to illicit financial flows and capital flight, a figure nearly double the foreign aid flowing into the continent. The African Development Bank also estimates that corruption alone drains approximately $148 billion each year, an amount that could cover Africa’s annual infrastructure needs of $93 billion. These losses obstruct progress towards the Sustainable Development Goals and weaken governments’ ability to fund essential services.

Investigations by Transparency International into 78 cases of IFFs from Africa identified over US$3.7 billion in corruption-linked African assets hidden across 74 jurisdictions, with wealthy nations frequently the main destinations. This represents only a bit of the problem. Research from the University of Sussex has highlighted a large-scale shift in the global epicentre of dirty money, with Dubai and Hong Kong, dubbed the “Dubai-Kong axis”, emerging as central hubs for flows linked to corruption, organised crime, and sanctions evasion. Their importance is in their connections across Asia, the Middle East, and the former USSR, while still maintaining ties to the West. London and the UK’s network of offshore territories, such as the British Virgin Islands and Gibraltar, remain central to these global laundering networks.

The United States has also become a significant destination for corrupt funds.

Treasury Secretary Janet Yellen admitted that the U.S. is “perhaps the easiest country to hide ill-gotten wealth,” ranking above Switzerland and traditional tax havens in financial secrecy.

Weak anti-money laundering and counter-terrorism measures, combined with widespread use of anonymous shell companies, help explain this vulnerability. Other key destinations for suspicious assets include Switzerland, Hong Kong, the UK, and the UAE.

Criminals and kleptocrats rely mostly on professional intermediaries, or enablers, to hide the origins of their wealth. Bankers continue to play a central role, and the 2020 FinCEN Files investigation revealed trillions of dollars in suspicious transactions moved by global banks with minimal accountability.

Even after paying hefty fines, institutions such as Deutsche Bank and HSBC have repeatedly facilitated questionable dealings. Real estate markets in cities like London, New York, and Vancouver serve as another vehicle. Between 2015 and 2020, over $2.3 billion was laundered through U.S. real estate alone, with 82 per cent originating abroad and over half involving Politically Exposed Persons (PEPs). The U.S. remains the only G7 country that does not impose anti-money laundering requirements on real estate professionals, allowing anonymous shell companies, LLCs, and land trusts to flourish.

Lawyers and accountants are also indispensable, creating opaque corporate structures and offering tax strategies that mask actual ownership. Despite the Financial Action Task Force (FATF) urging stronger oversight, some jurisdictions, including Canada and Australia, have resisted placing lawyers under mandatory reporting rules, citing solicitor-client privilege. Even universities are not left out, with institutions in the U.S., Canada, and the UK accepting huge tuition payments from students in West Africa, far exceeding officials’ legitimate salaries. Such practices not only launder funds but also provide reputation laundering for corrupt elites and their families.

Western governments claim to have attempted reforms, such as beneficial ownership registers and the U.S. Corporate Transparency Act, but their impact is limited. Beneficial ownership information in the U.S., for example, is not publicly accessible, reducing transparency. Enforcement remains inconsistent, and the sheer volume of Suspicious Activity Reports (SARs), over 2 million filed in the U.S. in 2019, means that many go unread, enabling banks to shield themselves from liability by filing paperwork rather than stopping transactions. FATF provides international standards but lacks enforcement power, leaving implementation to national authorities, which often apply them unevenly.

The contradiction is evident, and the U.S. and other Western nations are widely regarded as leaders in the fight against corruption. Yet, many of their financial systems rank among the most attractive for laundering illicit wealth. This lack of commitment prolongs the flow of Africa’s stolen assets into the Global North.

The consequences for African nations are devastating. Illicit financial flows undermine fiscal systems, reduce resources for health, education, and infrastructure, deter foreign investment, and entrench corruption. Corruption distorts investment decisions, diverts funds to non-productive activities, and reduces trust in government institutions. The fact that African elites can easily hide their wealth abroad further weakens governance and hampers economic integration into the global economy.

Africans need to strengthen anti-money laundering and counter-terrorist financing frameworks, empower enforcement agencies, and adopt measures such as public beneficial ownership registers, as recommended in the Mbeki Panel Report. Without African’s commitment, the cycle of “dirty money” flowing from Africa to the West will continue to drain development, entrench inequality, and undermine peace and security on the continent.

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