A UNODC consultant, Mr. Simon Goddard, was here in Freetown recently to conduct a “needs assessment” and it is in line with this assessment that the UNODC/GIABA and the Bank of Sierra Leone are now hosting this workshop. We sincerely hope that at the end of this workshop, participants would benefit from the experience of the facilitators and will be able to put together a National Strategy on Money Laundering Prevention, and will also provide the basis for the effective operations of a FIU. Monitoring cash transactions is a mammoth task because Sierra Leone primarily is a cash based economy where a significant number of transactions far exceed the statutory cash reporting requirements of the Central Bank. The sale of diamonds is especially conducted in cash, mainly U.S. dollars. Policing of the porous borders and the long coastline for smugglers is another big challenge particularly with the inadequacy of manpower and other logistics. I believe however, that as a country, we will be up to the task and that is why the Bank of Sierra Leone is doing all within its powers to attract the necessary assistance from our development partners. Ladies and Gentlemen, it is my singular honour to declare this workshop open. In doing so, let me once again use this opportunity to thank all our development partners, particularly the UNODC and GIABA.
In the West Africa sub-region, the principal sources of money laundering are from the illegal exploitation of natural resources especially in mining, and to a large extent the proceeds from corruption. Concern over Money Laundering is growing because of its perverse effects on the socioeconomic environment and its close links with organized crime. Armed with the immense financial resources at their disposal, money launderers can compromise persons and institutions to acquire economic, social and political power. The ten-year rebel war that officially ended in 2002 sadly illustrates the threat and problem that Money Laundering poses to emerging economies like Sierra Leone’s. The AFRC and RUF using a network of criminal gun running organizations to finance their activities completely destabilized our nation politically, socially and economically. Diamonds obtained by forced labour from the nation’s diamond fields (blood diamonds) played a significant role in fuelling the rebel war. Although the war ended in 2002, the environment wherein criminals can launder their ill-gotten fortunes still prevails today because Sierra Leone is characterized by the following socioeconomic features:•  A large and porous border that gives ample opportunities to criminals who can sneak in and out undetected. •  A large informal sector which is extremely difficult, if not impossible to regulate. •  The preponderance of cash in the payment system due to low level of development and outreach of the financial system. •  Corruption. •  The presence of valuable minerals (gold and diamonds), which are easy to smuggle.