It will no longer be business as usual for Non-Profit Organisations (NPOs) operating in the Northeast, Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Abdulrasheed Bawa, said yesterday.
Bawa, who said the activities of some of the organisations have become worrisome, insisted that the anti-graft agency, henceforth, beam its searchlight on them.
He said regulating the NPOs, especially those operating in areas with Boko Haram and Islamic State of West Africa Province (ISWAP) presence, became necessary to check terrorist financing.
The EFCC boss said the measure was in tune with Financial Action Task Force (FATF) regulations.
FATF standard requires countries to identify assets and understand the money laundering/terrorist financing risks.
Speaking in Abuja at the opening of the Technical Working Group of the National Risk assessment for the NPO Sector in Nigeria, Bawa said: “The Non-Profit sector is a unique sector that provides innumerable services to humanity across the world.
“They are globally recognised for their humanitarian services, support and hope to the weak and vulnerable in a variety of ways but most importantly, in complimenting government’s developmental efforts towards the provision of essential services to the vulnerable.
“In Nigeria, especially in the Northeast, NPOs have significantly complimented government’s effort in rebuilding, reconstruction and provision of humanitarian support to the internally displaced persons and other citizens even in the remote locations of the deep field.
“Unfortunately, the sector has been susceptible to the risk of terrorist financing. In particular, the vulnerability of the sector has been a global concern as it has been used to raise, move funds and provide logistical support to terrorist organisations.
“Thus, in Nigeria, government’s efforts in expanding the relatively free civic space have only resulted in the proliferation of NPOs especially in the Northeast where the country is most challenged with colossal humanitarian crisis created by the Boko Haram insurgency.
“The continued and increasing exposure of their activities therefore coupled with the absence of a unified comprehensive regulatory and supervisory framework for the sector in Nigeria remains a source of concern for the authorities.”
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On the FATF regulations, Bawa explained: “As you all know, the FATF standard requires countries to identify, assess and understand the Money Laundering/Terrorist Financing risks associated with “at risk NPOs” only for AML/CFT obligations and not the general community of NPOs. Nigeria was therefore rated non-compliant due to the absence of a comprehensive risk assessment report of the operators in the sector.
“As you are all aware, the Financial Action Task Force (FATF) requires countries to identify, assess and understand the Money Laundering and Terrorist Financing Risks, inherent in their systems for an efficient allocation of resources to address the identified threats and vulnerabilities.
“In response to this requirement and as the relevant supervisory authority of the Designated Non-Financial Businesses and Professions (DNFBPs), we have accorded this exercise, the relevant importance it requires by extending invitation to all stakeholders in the industry to participate in the exercise that will lead to the identification of the “at risk NPOs” to terrorism financing.
“Even more recently was Nigeria’s performance in the second round of the mutual evaluation exercise where the country sustained a non-compliant rating in FATF’s Recommendation eight.
“The recommendation requires countries to review the adequacy of their laws and regulations that relate to NPO, which the country has identified as being vulnerable to terrorist financing abuse. Countries are also obliged to apply focused and proportionate measures, in line with the risk-based approach.
“It is in recognition of the foregoing that we have gathered here today to commence the process of identifying the NPOs with funds at risk of being appropriated for Terrorism Financing.”
Listed the advantages therein for Nigeria, Bawa said: “This is a unique and important event as it forms an essential component in the development and implementation of an effective national Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regime of any country, which includes the review of laws, regulations, enforcement and other measures to mitigate ML/TF risks.
“The assessment will also enable Nigeria:
- Conduct proper classification of the NPOs in Nigeria and identify those at risk to money laundering threat/terrorist financing abuse.
- Ensure improved compliance with relevant international, regional and domestic laws/regulations (FATF/GIABA/MLPA/TPA/CAMA) by NPOs.
- Develop commensurate mitigation measures for the ‘at risk and vulnerable NPOs’ operating in Nigeria.
- Ensure enhanced coordination and collaboration between government regulatory/law agencies and the civic space.
“Accordingly, you all have been carefully selected by your organisations amongst many other colleagues to bring your industry to bear towards a successful conduct of the exercise.”
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