The Nation Newspaper

Tag: Anti-money

  • ‘Strengthen anti-money laundering laws’

    Participants at one day round table organised by Sterling Partnership, a leading commercial law firm, have called for the strengthening of anti-money laundering laws.

    The event which held in Lagos  had two sessions on the role of the law in Nigeria’s pursuit of sustainable economic development.

    The topics were:  Curbing Impunity: Anti-Money Laundering and Asset Tracing’ and Creating an Enabling Environment for Funding Entertainment: The Role of Law.

    Introducing the first session, former Commonwealth Lawyers Association (CLA) president Mrs Boma Ozobia said: “Despite the global, regional and local trends being experienced in the oil industry, Nigeria is presented with another opportunity to get things right through the development of other sectors of the economy.

    “Asset tracing as a veritable tool for discovering laundered assets and stripping corrupt people of the benefits of their crimes and restoring same to the society was highlighted, using the Abacha loot model.

    A major drawback to asset recovery, however, is the general perception among the international community that even when the proceeds of corrupt enrichment are recovered and restored to Nigeria, such funds/assets still find its way into corrupt pockets. Incompetent investigations and prosecutors was also held out as major stumbling block to the fight against corruption.

    One strategy distilled for quick and effective investigation is appropriate use of the Declaration of Assets Form as in the Schedule to the Economic and Financial Crimes Commission (EFCC) Act where false or incomplete disclosure of assets could attract up to five years imprisonment.

    “Another issue identified at the event wasthe need to expedite proceedings in court and dispense with bottlenecks. It is anticipated that the enactment of the Administration of Criminal Justice Act 2015,  will ensure the system of administration of criminal justice in Nigeria is more efficient. t

    The Managing Partner of Sterling Partnership, Mr.  Israel Aye, stated that despite the huge potential of the creative and entertainment industry to create wealth and generate employment for the teeming youth population, the industry will not be able to attract sufficient financial capital needed for growth if it does not have a well-articulated legal and fiscal framework.

    Notwithstanding the success the creative industry has experienced in recent years, particularly Nollywood and the music industry, the general consensus was that the creative industry has phenomenal capacity to attain even greater feats.

    It was also acknowledged that although there is a ready market for the creative industry, the lack of a legal framework and infrastructure has hampered effective access to the market. In this regard, the creative industry is encouraged to form broad based partnerships with industries that can help it access funds required for growth.

    Aye reiterated that absence of a clear legal and fiscal framework will inevitably stunt the growth of any system.

    At the event were Chief Judge of Anambra State, Justice Justice Peter Umeadi; Justice Peter Obiora of the High Court of Anambra State); Justice Ibrahim Buba of the Federal High Court; Prof Olawale Ajai of the Lagos Business School, Mr. Yahaya Maikori, Taiwo Ajai-Lycett , Mr Bola Mogaji, Mrs. Ifeoma Fafunwa and Deola Sagoe, among others.

  • ‘Why banks should adopt anti-money laundering measures’

    Banks have been  urged to see anti-money laundering (AML/CFT) compliance as obligatory because of the need to insulate banks and other financial institutions against criminal activities.

    Managing Director of DataPro Limited, Mr. Abimbola Adeseyoju, who said this at the January meeting of the Committee of Chief Compliance Officers of Banks in Nigeria (CCCoBIN) sponsored by his company as part of activities to mark 20 years of its existence, added that with AML/CFT compliance the economy will be protected from avoidable crises.

    Adeseyoju wondered “what happens if we build around our banks and institutions around the ‘bad’ guys?

    “When the storm comes, we cannot properly profile out customers. Their loans are not serviced. And they (customers) do not care and simply walk away. That is why we need to do all the Know Your Customer (KYC), Customer Due Diligence (CDD) Enhanced Due Diligence (EDD) Record Keeping, Mandatory and Suspicious Reporting and put in place Processes, Procedures, Policies and Programs,” the DataPro boss said.

    He maintained that the above measures are duties forced on banks as necessary tools for the survival of the banking business, so it is therefore expected that compliance practitioners should obey the law and comply with regulations.

    Adeseyoju warned banks that reputational risks are something that cannot be quantified in naira, adding that compliance is the only provision for reputational risk.  Taking the banks and their compliance officers down memory lane, he said: “Our brand is only as strong as our reputation. The events of August 2009 are still fresh.

    “Compliance or the public perception of some operators moved them notches up to the top of the ladder. Those of us in compliance should therefore, see ourselves as the custodians of our institutions.”

    DataPro is regarded as the leading and most experienced AML/CFT compliance training and consulting firm in Nigeria that offers AML/CFT compliance training services to more than 70 per cent of the banks and other non-bank financial institutions in Nigeria. The firm is a development partner of the Committee of Chief Compliance Officers of Banks in Nigeria (CCCOBIN).

  • AfDB strengthens anti-money laundering scheme

    AfDB strengthens anti-money laundering scheme

    African Development Bank (AfDB’s) Vice-President Aly Abou-Sabaa has said addressing issues of governance, fighting corruption and promoting greater transparency and accountability across both public and private sectors is key to unlocking the full African potential of the continent and ensuring the sustainability of its development.

    In a statement, the bank chief said Africa’s abundance of natural resources in forestry, agriculture, minerals, oil and gas, offer a major opportunity to close the development gap.

    He said a recent research by the bank shows that countries which implemented governance reforms were performing better than non-reforming countries. According to the African Development Effectiveness Review on Governance, published in 2012, reformers benefitted from an additional two percentage points of growth in comparison to non-reformers between the decades 1990-2000 and 2000 to 2008.

    However, while some progress has been achieved towards promoting good governance, there remains a lot of work to be done. “Progress has been uneven and insufficient,” Abou-Sabaa said.

    Speaking at the opening of the conference, Mauritanian President Mohamed Ould Abdel Aziz called for increased cooperation between African countries as well as a multidimensional approach and joint action between government departments, civil society and the private sector in order to effectively fight mismanagement and lack of transparency.

    The lender, he said, is playing a key role in that regard. Its strategy for 2013 to 2022 is articulated around economic transformation, with governance and accountability as a key priority. On top of its Governance Action Plan launched in 2014, the AfDB is currently updating its anti-money laundering and terrorist financing strategy to incorporate illicit financial flows to strengthen its support for African countries in these areas.

    The AfDB has recently set up the African Natural Resources Centre. The aim is to provide dedicated advice, technical assistance and advocacy to African countries to strengthen the institutions managing natural resources, to step up civil society capacity, and increase advocacy efforts in international fora.

    According to a study prepared jointly by the bank and Global Financial Integrity in 2013, between 2000 to 2009, the continent lost some $30.4 billion per annum, an amount mirroring what the continent receives in aid and foreign direct investment.

  • Anti-money laundering auditors coming

    Examiners from the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) and Financial Action Task Force (FATF) will be in Nigeria in 10 days to assess banks’ compliance with international money laundering laws, GIABA Information Manager in Nigeria, Timothy Melaye, has said.

    Speaking on the telephone with The Nation over the weekend, he said officials of the groups will carry out checks at the branches of selected banks across the country, ading that compliance at the airports and land borders may also come under their scrutiny.

    The outcome of recent evaluation of Nigeria financial sector revealed an abysmal performance on the recommendations relating to the adoption and implementation of the FATF standards. This makes the sector one of the vulnerable sectors in African economies.

    Melaye said the country’s inclusion on the list of non-co-operative countries (NCCTs) has stalled foreign direct investment (FDI) into the country, adding that many investors avoid bringing their funds into non-compliant countries.

    The FATF had listed the non-implementation of procedures to identify and freeze terrorists’ assets and failure to ensure that customer due diligence requirements apply to all financial transactions as areas Nigeria needs to address in order to ensure her removal from the high-risk and non-cooperative jurisdictions list.

    He said: “There is need to protect bank officers involved in driving the implementation of the money laundering laws and regulations as well as institution of penalties against non-compliant staff.

    “However, Nigeria has largely addressed its action plan by enacting legislation to adequately criminalise money laundering and terrorist financing, implementing procedures to identify and freeze terrorist assets, ensuring that customer due diligence requirements apply to all financial instructions.”

    He said there was also a meeting between the Nigeria Presidential Committee of FATF and the FATF Regional Review Group in Paris, France,in addition to other significant remediation measures/actions taken by the country.