The Intergovernmental Action Group against Money Laundering in West Africa has published a typologies report on money laundering and terrorist financing linked to the misuse of legal persons and legal arrangements in West Africa. The study finds that weaknesses in transparency, beneficial ownership disclosure and access to reliable company information continue to leave corporate structures vulnerable to misuse for money laundering, terrorist financing and proliferation financing, even where some countries have introduced beneficial ownership registers and related reforms. Across the region, the report points to recurring weaknesses in company formation and oversight, including limited anti-money laundering and counterterrorist financing safeguards at incorporation, reliance on self-declared and often unverified information, weak updating of shareholder and beneficial ownership records, fragmented registries, ineffective supervision and weak enforcement of sanctions. It also highlights poor understanding and regulation of legal arrangements in many jurisdictions, limited access for authorities to adequate and timely beneficial ownership information, and continuing risks from nominee directors or shareholders, bearer instruments in some countries, and opaque cross-border structures. Based on cases and country inputs, GIABA identifies common misuse patterns such as shell companies, false invoicing, corruption in public procurement, trade-based money laundering, use of professionals to create complex structures, and payment channels such as fintech accounts and point-of-sale devices to move illicit funds. The report sets out short-, medium- and long-term actions for member states and GIABA, including stronger verification and update requirements for beneficial ownership information, national beneficial ownership registers in all member states, tighter controls on bearer shares and nominees, interconnection of registers with financial intelligence units and tax authorities, more typology and risk studies, and a West African cooperation network for exchanging beneficial ownership information.
Inter Governmental Action Group against Money Laundering in West Africa (GIABA)2025-12-01
Intergovernmental Action Group against Money Laundering in West Africa publishes typologies report identifying beneficial ownership and transparency gaps in West African legal entities
GIABA has issued a typologies report finding that weak beneficial ownership controls, unverified company data and fragmented oversight continue to expose West African legal entities and arrangements to misuse for money laundering and terrorist financing. The report highlights shell companies, false invoicing, nominee structures and corrupt procurement schemes as recurring methods. It calls for stronger registers, better verification, tighter sanctions and closer cross-border information sharing.