Niger

Political situation

Niger has continued to enjoy relative peace and political stability since the restoration of democracy and carried out political and institutional reforms in the previous year. Even so, there are fears that Niger’s large nomadic Tuareg population, about 11% of the total population, and difficult socio-economic conditions could lead to a massive influx of Tuareg rebels and people linked to terrorism and insecurity from neighbouring Mali. In response, the government unveiled a five-year development and security strategy aimed at preventing Niger from falling into the kind of terrorism-related violence and insecurity that has gripped Mali.

Niger ranks well in the Reporters Without Borders Press Freedom Index of 25 January 2012. In Africa, Niger is in 4^th place, behind Cabo Verde (1^st), Namibia (2^nd) and Mali (3^rd). The press in Niger faces harsh economic challenges, but it is free and works within a favourable legal framework. There have been almost no reports of violations, and progress can be seen in both concrete and symbolic measures.

However, despite these commendable advances in democracy and constitutionalism, the entrenchment of terrorist groups in neighbouring Mali and Nigeria in 2012 considerably increased the country’s exposure to ML/TF risks. The infiltration of the pan-Tuareg secessionist movement by jihadists and the growing intensity of organised crime on both sides of the borders with Mali and Nigeria have particularly increased Niger’s vulnerability to organised crime, the laundering of the proceeds of such crime and terrorist financing transactions.

Economic and financial situation

Following a series of external shocks, namely a poor rainy season with minimal rainfall and security problems in neighbouring Nigeria and Côte d’Ivoire, which cut economic growth from 8% in 2010 to 4.2% in 2011, Niger’s economy was expected to grow by 11.2% in 2012 and 6% in 2013. The expected growth, lower than the 14.2% projected by the IMF, was attributed to major investment in the mining and oil sectors.

This impressive growth has not, however, translated into widely shared prosperity. With an economy that creates few jobs, many young Nigeriens continue to struggle to find work. Living conditions are difficult everywhere and anti-poverty efforts have produced only modest results. As a result, Niger is unlikely to achieve all the MDGs by 2015, in particular the goal of halving poverty.

Niger’s growth strategy rests on seven pillars, including a major increase in public spending on infrastructure, agriculture, health and education, measures to counter increasingly serious security threats in the region, and a general programme to develop the financial and private sectors. The authorities are finalising the progress report on the poverty reduction strategy for 2008 to 2012. They also hope to finalise a strategy for sustainable development and inclusive growth, the government’s new poverty reduction strategy, which is due to be completed before the end of 2012.

Whatever happens with these development strategies, Niger will need to strengthen good governance in order to lift its population out of poverty and reduce its vulnerability to ML/TF risks. With the discovery of oil in commercial quantities in addition to its uranium, it has the potential to become a prosperous country if these mineral resources are well exploited and managed.

Niger’s financial sector is dominated by 10 deposit money banks, which account for about 90% of the sector’s assets, equivalent to 12.74% of GDP in 2010. Remittances in 2011 amounted to USD 102 million, or about 1.7% of GDP.

Niger ranks second to last in the world on the Human Development Index (186th out of 187 countries). It faces multiple crises (the 2011 food crisis, severe flooding in 2012 and security crises throughout the country). GDP per capita is about USD 399 and 43.1% of the population lives on less than USD 1.25 a day. The population, estimated at 15.5 million, is growing at 3.5% a year. The UNDP reports that life expectancy in Niger is 54.7 years and the mortality rate is 7.3%.

The country needs a sound business climate (173rd out of 183 countries in the 2012 Doing Business ranking). Debilitating factors in the business environment include corruption, inconsistency between certain rules and their application, institutional weaknesses, and lack of access to credit and land. Moreover, the last session of the EITI International Board in March 2011 placed Niger among the countries judged least compliant with the Extractive Industries Transparency Initiative (EITI). Niger was again ranked low by Transparency International in 2012, with a score of 33 out of 100 (113th out of 174 countries).

Social conditions in the country have remained distressing. There has been some progress in improving people’s living conditions, but significant poverty reduction is still a long way off. To reverse this trend, Niger needs strong and sustained growth of about 7% a year, combined with a sound policy to control population growth.

Demand for labour is relatively weak in Niger, showing that the economy has little capacity to create jobs. This is a major obstacle to youth employment. Similarly, about 40% of graduates lack the professional profiles employers need, because their qualifications are very often not designed to meet labour market needs.

The UNDP Human Development Report states that the adult literacy rate was about 28.7% in 2011 and that primary school enrolment is rising, but that the education system still has shortcomings. In education, girls’ enrolment in primary school has doubled since 2000, yet the gap between girls and boys widens towards the end of primary school. Given the level of poverty in Niger, the proportion of unemployed women again shows the difficult conditions in which they live. Women’s presence in public life and their participation in government, parliament and public institutions have improved, thanks in particular to the law establishing a quota system. Unfortunately, their weight in decision-making bodies remains limited.

Prevalence of predicate offences

Niger is one of the countries in the Sahel region most affected by transnational organised crime, terrorism and terrorist financing. Desert covers three quarters of the country, and 85% of its 16 million inhabitants live in a corridor barely 100 to 150 km wide between the northern border with Nigeria and the capital, Niamey. This makes it difficult for the State to exercise effective security control over the whole territory and facilitates the emergence of various forms of organised crime and terrorism. According to the US State Department, drug traffickers cross Mauritania and the northern regions of Mali and Niger and travel along the Algerian and Libyan borders into North Africa before heading to the Middle East and Europe. The drugs they carry come mainly from South America. In addition, weapons have become widely available in the Sahel since the end of the Libyan conflict, enabling traffickers to strengthen their capacity to deliver their illicit goods.

Although Niger is not known as a drug-producing or drug-consuming country (apart from small quantities of cannabis and synthetic drugs), it regularly reports seizures of impressive quantities of drugs as a result of international drug trafficking. In this regard, on the International Day against Drug Abuse and Illicit Trafficking, marked on 26 June 2012, a drug-burning ceremony was held in Niger under the authority of the Minister of Justice and Keeper of the Seals to destroy a large quantity of seized drugs.

Besides drug and arms trafficking, huge quantities of cigarettes are smuggled across the Sahel, a very lucrative activity for traffickers in the region (in Niger). Cigarettes from counterfeit factories, mainly in Nigeria, are distributed in the region, the Maghreb, the Middle East and Europe. This trafficking is a major source of financing for terrorist groups. Although the groups may not always or necessarily be directly involved in this type of smuggling, they make smugglers pay for protection by acting as their bodyguards. In addition to cross-border trafficking in the Sahel-Saharan region, Niger is increasingly facing the terrorist threat posed by Al-Qaeda in the Islamic Maghreb (AQIM), which takes the form of kidnappings by AQIM and the activities of Boko Haram in Nigeria. Reports by the US Drug Enforcement Administration (DEA) show that 60% of foreign terrorist groups are involved in drug trafficking, which could worsen crime levels inside the country. Prevalent predicate offences include illegal fuel trafficking, cigarette smuggling, trafficking in various goods in transit, counterfeiting and use of forged documents, corruption, tax evasion, illicit enrichment, influence peddling and embezzlement of public funds.

AML/CFT situation

Given that Niger had repeatedly failed to report significant progress in bringing its national AML/CFT system up to international standards, the GIABA Technical Commission placed the country under enhanced follow-up in November 2011. GIABA also undertook an advocacy visit to the country’s highest authorities from 24 to 26 April 2012, urging them to improve their AML/CFT regime. GIABA’s initiative appears to have borne fruit, judging by the progress seen in Niger’s 4^th Follow-up Report, presented to the GIABA Technical Commission in November 2012. It shows renewed momentum in efforts to combat money laundering and terrorist financing in the country. It notes in particular that the national authorities are playing an active role in efforts to ensure effective control of corruption and related offences.

Niger subsequently set up the High Authority to Combat Corruption and Related Offences (HALCIA). Since then, several prominent figures have been questioned and brought before pre-trial detention hearings for smuggling goods. The Ministry of Justice has also set up a toll-free number so that all citizens can report cases of corruption. Likewise, eight (08) complaints have been filed for Parliament to lift the parliamentary immunity of members under investigation for corruption. To combat terrorist financing, a central unit has been created within the Directorate General of Territorial Surveillance. Similarly, a unit for the prevention of terrorism and its financing has been set up within the judicial system in its own right. On national cooperation, Niger has revived the National Counter-Terrorism Commission at the Ministry of Foreign Affairs (Decree No. 022/MAEC/DAAF/DP of 25/10/2007, amended by Order No. 03/MAEC/IA/NE/DIRCAB of 2/21/2012), which it had originally set up in 2010. The commission’s structure has been changed to include the FIU (CENTIF) and the BCEAO, making it a forum for exchanges on the operational aspects of counter-terrorism.

On AML/CFT more specifically, Niger’s law on combating terrorist financing complies with the WAEMU uniform law. The CENTIF now enjoys better working conditions. It has more funding, suitable premises and equipment, and remuneration for its staff. The CENTIF’s rules and regulations have been revised to strengthen its structure. The unit now has a financial analyst sponsored by GIABA to process suspicious transaction reports (STRs). In 2012, the CENTIF received seven (07) STRs. Of these, five (05) were processed and referred to the Public Prosecutor. The CENTIF also carried out four (4) administrative freezes to examine cases of money laundering and/or terrorist financing. As regards cooperation with other FIUs, the CENTIF signed an agreement with the FIC of Ghana in February 2012. It also signed an agreement with the FIU of Gabon in March 2012.

In addition, the CENTIF undertook a study tour to several foreign FIUs to learn best practices. These included TRACFIN (France), CTIF (Belgium), the CENTIF of Senegal, the CENTIF of Côte d’Ivoire and the FIC of Ghana. It also held working sessions with the GIABA Secretariat and UNODC at their respective offices in Senegal. Likewise, it will hold meetings with technical and financial partners in Niger to present its work programme and seek technical assistance from them (the US Consulate, the French Embassy, the Chinese Embassy, the Delegation of the European Union, the Coordinator of the EU Unit at the Ministry of Finance, and the US Embassy).

Niger’s Minister of Justice officially inaugurated the National AML/CFT Coordination Commission on 5 April 2012 in the presence of the GIABA Representative. In June 2012, the Commission held a workshop to train its members on the national AML/CFT strategy. Following this workshop, the commission approved Niger’s National AML/CFT Strategy Document, which is now being adopted by the public authorities.

Technical assistance

GIABA recruited a financial analyst for Niger’s CENTIF, initially for one year. GIABA also sponsored newly appointed CENTIF members on a study tour to Belgium to learn best practices. Nevertheless, it is crucial to take account of the organised crime situation in the country when determining its technical assistance needs, which include:

• Restoring the confidence of banks and other reporting entities in the confidentiality of their reports, to encourage them to file more;
• Training programmes covering all stakeholders, especially reporting entities;
• Specific training exercises for investigators and judicial authorities;
• Holding a consultative meeting on manual foreign exchange operations;
• Raising awareness in local communities;
• Providing FIUs with high-quality technical equipment: installing the STR processing application, obtaining a database server, a backup server and a mail server, providing training in the use of the STR database, and training the CENTIF’s financial analyst;
• Organising an International Forum on Terrorist Financing; and
• Organising study tours and facilitating cooperation agreements with the FIUs of Chad, Nigeria, Cameroon, France and Belgium.

Conclusion

Niger suffers from geopolitical instability and has porous borders that facilitate the movement of weapons from one country to another, strengthening the position of terrorists and drug traffickers. Against this backdrop, the country has become an attractive destination or transit point for arms proliferation, trafficking in various drugs, and the smuggling of cigarettes and other illicit substances. Given the scale of the challenge, all social groups need to join forces to combat organised crime effectively. This involves first and foremost the security services (police, gendarmerie and customs), as well as judges and AML/CFT entities. The crime situation makes the country particularly vulnerable to money laundering and terrorist financing offences. Niger must therefore maintain its momentum towards compliance with international standards. This means properly implementing the recommendations of its Mutual Evaluation Report, in particular setting up an appropriate mechanism for freezing and confiscating the proceeds of crime in line with UNSCRs 1267 and 1373. It must also provide its CENTIF with secure and adequate premises so that it can benefit from GIABA’s AML/CFT analysis hardware and software and begin the process of applying for membership of the Egmont Group.