The Nation Newspaper

Tag: FATF

  • Nigeria gets five upgrades to exit FATF’s grey list

    Nigeria gets five upgrades to exit FATF’s grey list

    Nigeria has made significant strides in its fight against money laundering and terrorism financing by securing upgrades on five recommendations set forth by the Financial Action Task Force (FATF).

    The development has moved the country closer to exiting the grey list that has cast a shadow over its financial reputation since February 2023.

    The upgrades were acknowledged during the 42nd GIABA Technical Commission and plenary meeting held from Novem ber 17 to 23 in Freetown, the Sierra Leonean capital.

    At the meeting, Nigeria’s third Follow-Up Report was reviewed, showing the country’s advancements in addressing technical compliance issues identified during its 2021 Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Mutual Evaluation.

    A statement yesterday in Abuja by the Nigerian Financial Intelligence Unit (NFIU) reads: “As it stands, Nigeria is now compliant or largely compliant in 37 out of the 40 FATF recommendations.”

    The recognised improvements have to do with five specific recommendations previously classified as partially compliant. These include measures related to designated non-financial businesses and professionals, transparency in beneficial ownership of legal persons and arrangements, regulation and supervision of designated non-financial businesses and professionals (DNFBPs), and the management of cash couriers.

    The NFIU hailed this recognition, saying: “Member-states of GIABA and international partners, including the FATF, have commended Nigeria on these efforts. This achievement will further strengthen the country’s mechanisms in combatting money laundering, terrorist financing, proliferation financing, and other predicate offenses.”

    Read Also: Nigeria halfway through exiting FATF grey list

    The delegation to the plenary was led by the Chief Executive Officer of the NFIU, Hafsat Abubakar Bakari, who also represents Nigeria at the ECOWAS Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA).

    The team comprised representatives from key financial and regulatory institutions, including the Economic and Financial Crimes Commission (EFCC), the Central Bank of Nigeria (CBN), and the Federal Ministry of Justice.

    Exiting the FATF grey list is crucial for Nigeria, as it is expected to enhance the country’s economic standing globally and facilitate smoother diaspora remittances. Improved compliance will not only lower the costs for Nigerians abroad sending money home but will also bolster investor confidence and economic growth.

    As Nigeria moves forward with these upgrades, the NFIU said: “The nation remains committed to strengthening its financial systems and maintaining transparency in its economic dealings, aiming to restore its international financial reputation.”

  • Nigeria secures five upgrades en route to exiting FATF’s grey list

    Nigeria secures five upgrades en route to exiting FATF’s grey list

    Nigeria has made significant strides in its fight against money laundering and terrorism financing by securing upgrades on five recommendations set forth by the Financial Action Task Force (FATF). 

    This development moves the nation closer to exiting the grey list that has cast a shadow over its financial reputation since February 2023.

    The upgrades were acknowledged during the 42nd GIABA Technical Commission and Plenary Meeting held from November 17 to 23, 2024, in Freetown, Sierra Leone. 

    At the meeting, Nigeria’s third Follow-Up Report was reviewed, showing the country’s advancements in addressing technical compliance issues identified during its 2021 Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Mutual Evaluation.

    A statement from the Nigerian Financial Intelligence Unit (NFIU) on Sunday disclosed that “As it stands, Nigeria is now compliant or largely compliant in 37 out of the 40 FATF recommendations.”

    The recognised improvements has to do with five specific recommendations previously classified as partially compliant.

    Read Also: Nigeria halfway exiting FATF grey list

    These include measures related to designated non-financial businesses and professionals, transparency in beneficial ownership of legal persons and arrangements, regulation and supervision of designated non-financial businesses and professionals (DNFBPs), and the management of cash couriers.

    The Nigerian Financial Intelligence Unit (NFIU) hailed this recognition, stating that, “Member states of GIABA and international partners, including the FATF, have commended Nigeria on these efforts. This achievement will further strengthen the country’s mechanisms in combatting money laundering, terrorist financing, proliferation financing, and other predicate offenses.”

    The delegation to the plenary was led by Hafsat Abubakar Bakari, the Chief Executive Officer of the NFIU, who also represents Nigeria at ECOWAS’s Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA). 

    The team comprised representatives from key financial and regulatory institutions, including the Economic and Financial Crimes Commission (EFCC), the Central Bank of Nigeria (CBN), and the Federal Ministry of Justice.

    Exiting the FATF grey list is crucial for Nigeria, as it is expected to enhance the country’s economic standing globally and facilitate smoother diaspora remittances. Improved compliance will not only lower the costs for Nigerians abroad sending money home but will also bolster investor confidence and economic growth.

    As Nigeria moves forward with these upgrades, the NFIU noted that “the nation remains committed to strengthening its financial systems and maintaining transparency in its economic dealings, aiming to restore its international financial reputation.”

  • Nigeria halfway exiting FATF grey list

    Nigeria halfway exiting FATF grey list

    The Financial Action Task Force (FATF) has acknowledged Nigeria’s progress in its anti-money laundering and counter-terrorist financing (AML/CFT) measures during the recent October Plenary Meeting held on Friday. 

    This recognition comes as Nigeria has nearly fulfilled half of the criteria outlined in its Action Plan aimed at exiting the notorious grey list that has shadowed its financial reputation since February 2023.

    Exiting the grey list will easy diaspora remittances by making it cheaper for Nigerians outside the country to send money back home among others benefits.

    The FATF, the international watchdog for financial crime, has approved Nigeria’s fourth progress report since it was placed under increased monitoring due to identified deficiencies in its AML/CFT systems. This status has historically impacted the nation’s global financial interactions, making it essential for Nigeria to address these challenges effectively and expeditiously.

    Read Also: Webb Fontaine, Starlink to boost port efficiency

    The findings detailed in the report reflect a positive turnaround in Nigeria’s approach to combatting serious crimes such as money laundering and terrorism financing. Notably, the country has established robust systems for international cooperation to facilitate asset recovery, enhanced national coordination focused on counter-terrorism operations, and implemented effective measures to prevent the exploitation of the non-profit sector for terrorist financing purposes.

    These developments mark a watershed moment in Nigeria’s commitment to aligning with global standards as delineated by the FATF, particularly in light of the critical observations raised in the country’s 2021 AML/CFT Mutual Evaluation Report.

    Mrs. Hafsat Abubakar Bakari, Chief Executive Officer of the Nigerian Financial Intelligence Unit (NFIU), expressed pride in Nigeria’s accomplishments while attending the Plenary in Paris. 

    “Through the concerted efforts of all public and private sector stakeholders who are involved in Nigeria’s systems to ensure the integrity of the financial system, we have been able to complete almost half of the items that were included in the country’s Action Plan to exit the grey list,” she stated.

    Moreover, Mrs. Bakari emphasised confidence in the continued momentum under the leadership of President Bola Ahmed Tinubu and the collaborative efforts of key personnel including members of the Federal Executive Council and the Inter-Ministerial Committee on AML/CFT, chaired by the Attorney-General of the Federation alongside the Ministers of Finance and Interior. 

    She reassured stakeholders that Nigeria is poised to complete all outstanding actions before the impending deadline of May 2025.

    In addition to Nigeria’s progress, other decisions emerged from the FATF’s meeting in Paris. Senegal was removed from the grey list following the successful completion of its own Action Plan. On the other hand, Algeria, Angola, Côte d’Ivoire, and Lebanon have been added to the FATF’s monitoring list, indicating heightened scrutiny of their financial systems.

    The FATF, established in 1995, continues to lead global initiatives against various financial crimes. 

    Its role involves investigating the mechanics of money laundering and terrorist financing, promoting robust standards aimed at mitigating these risks, and assessing whether nations are effectively addressing deficiencies in their financial oversight frameworks.

  • Nigeria concludes 30% of FATF action plan

    Nigeria concludes 30% of FATF action plan

    Nigeria has successfully implemented 30 per cent of the Action Plan required by the Financial Action Task Force (FATF) to exit the grey-list by 2025.

    A statement from the Nigerian Financial Intelligence Unit (NFIU) on Wednesday said this progress indicates that the country remains on track to meet the final deadline of May 2025, a crucial milestone in its ongoing efforts to strengthen financial oversight and combat money laundering and terrorism financing.

    The Presidency had recently stressed its unwavering commitment to this objective, reiterating that the administration is dedicated at the highest levels to ensuring that all necessary measures are in place to complete the Action Plan on time.

    This public statement comes as Nigeria seeks to reassure both domestic and international stakeholders of its resolve to address the issues that led to its inclusion on the FATF grey-list in February 2023.

    To further demonstrate its commitment, an inter-agency team led by Hafsat Abubakar Bakari, the Chief Executive Officer of the NFIU, met with the FATF’s International Cooperation Review Group (ICRG) in Brussels, Belgium, on September 3, 2024.

    The meeting was a critical component of Nigeria’s efforts to provide updates and evidence of progress on the Action Plan.

    The Nigerian delegation to Brussels was composed of representatives from key institutions involved in the country’s financial oversight and enforcement mechanisms.

    These included the Central Bank of Nigeria (CBN), Department of State Services (DSS), Economic and Financial Crimes Commission (EFCC), Federal Ministry of Justice, Independent Corrupt Practices Commission (ICPC).

    Others are National Insurance Commission (NAICOM), Nigeria Customs Service (NCS), Nigeria Export Processing Zones Authority (NEPZA), Special Control Unit Against Money Laundering (SCUML), and Securities and Exchange Commission (SEC).

    During the meeting, the team presented Nigeria’s fourth tri-annual progress report, which detailed the steps taken since the last review.

    Read Also: Fed Govt kicks off Consumer credit with 500,000 beneficiaries

    This report is part of a series of updates that Nigeria has committed to providing as it works towards full compliance with the FATF’s recommendations.

    The FATF grey-listing in February 2023 was a significant wake-up call for Nigeria, highlighting deficiencies in the country’s ability to prevent and combat money laundering and terrorism financing.

    Since then, the government has taken decisive actions to address these gaps, including the establishment of the inter-agency task force that now spearheads the implementation of the Action Plan.

    The success of this initiative is critical not only for Nigeria’s financial integrity but also for its standing in the international community.

    Removal from the FATF grey-list would enhance Nigeria’s reputation as a secure and compliant financial jurisdiction, which in turn could bolster investor confidence and foster economic growth.

    As the May 2025 deadline approaches, all eyes will be on Nigeria to see if it can sustain the momentum and complete the remaining tasks in the Action Plan. The recent meeting in Brussels is a positive indicator, suggesting that the country is well-positioned to meet its commitments and ultimately, secure its removal from the grey-list.

    The Presidency’s recent public statement, coupled with the proactive efforts of the inter-agency team, sends a clear message: Nigeria is serious about its financial reform agenda and is determined to emerge as a stronger, more resilient player in the global financial system.

  • Grey-list: Nigeria concludes 30% of FATF action plan items

    Grey-list: Nigeria concludes 30% of FATF action plan items

    Nigeria has successfully implemented 30 percent of the Action Plan required by the Financial Action Task Force (FATF) to exit the grey list by 2025.

    A statement from the Nigerian Financial Intelligence Unit (NFIU) on Wednesday said this progress indicates that the country remains on track to meet the final deadline of May 2025, a crucial milestone in its ongoing efforts to strengthen financial oversight and combat money laundering and terrorism financing.

    The Presidency had recently stressed its unwavering commitment to this objective, reiterating that the administration is dedicated at the highest levels to ensuring that all necessary measures are in place to complete the Action Plan on time.

    This public statement comes as Nigeria seeks to reassure both domestic and international stakeholders of its resolve to address the issues that led to its inclusion on the FATF grey list in February 2023.

    To further demonstrate its commitment, an inter-agency team led by Hafsat Abubakar Bakari, the Chief Executive Officer of the Nigerian Financial Intelligence Unit (NFIU), met with the FATF’s International Cooperation Review Group (ICRG) in Brussels, Belgium, on September 3, 2024.

    The meeting was a critical component of Nigeria’s efforts to provide updates and evidence of progress on the Action Plan.

    The Nigerian delegation to Brussels was composed of representatives from key institutions involved in the country’s financial oversight and enforcement mechanisms.

    These included the Central Bank of Nigeria (CBN), Department of State Services (DSS), Economic and Financial Crimes Commission (EFCC), Federal Ministry of Justice, Independent Corrupt Practices Commission (ICPC), National Insurance Commission (NAICOM), Nigeria Customs Service (NCS), Nigeria Export Processing Zones Authority (NEPZA), Special Control Unit Against Money Laundering (SCUML), and Securities and Exchange Commission (SEC).

    Read Also: Nigeria edges closer to exiting FATF’s grey list

    During the meeting, the team presented Nigeria’s fourth triannual progress report, which detailed the steps taken since the last review. This report is part of a series of updates that Nigeria has committed to providing as it works towards full compliance with the FATF’s recommendations.

    The FATF grey-listing in February 2023 was a significant wake-up call for Nigeria, highlighting deficiencies in the country’s ability to prevent and combat money laundering and terrorism financing. Since then, the government has taken decisive actions to address these gaps, including the establishment of the inter-agency task force that now spearheads the implementation of the Action Plan.

    The success of this initiative is critical not only for Nigeria’s financial integrity but also for its standing in the international community. Removal from the FATF grey list would enhance Nigeria’s reputation as a secure and compliant financial jurisdiction, which in turn could bolster investor confidence and foster economic growth.

    As the May 2025 deadline approaches, all eyes will be on Nigeria to see if it can sustain the momentum and complete the remaining tasks in the Action Plan. The recent meeting in Brussels is a positive indicator, suggesting that the country is well-positioned to meet its commitments and ultimately secure its removal from the grey list.

    The Presidency’s recent public statement, coupled with the proactive efforts of the inter-agency team, sends a clear message: Nigeria is serious about its financial reform agenda and is determined to emerge as a stronger, more resilient player in the global financial system.

  • Nigeria edges closer to exiting FATF’s grey list

    Nigeria edges closer to exiting FATF’s grey list

    • Completes 30% Action Plan for exit

    Nigeria has moved closer to exit the Financial Action Task Force’s (FATF) grey list.

    What this means is that the country has increased monitoring of identified deficiencies in combating money laundering, terrorist financing, and proliferation financing.

    According to a statement released by the Nigerian Financial Intelligence Unit (NFIU), “Nigeria has completed 30% of the Action Plan developed as part of the grey listing process.  This progress report was well-received by the FATF, resulting in the approval of Nigeria’s third Progress Report at the June 2024 FATF Plenary meeting in Singapore.

    The FATF further acknowledged Nigeria’s efforts by granting two upgrades in this round. These positive developments suggest Nigeria is on track to exit the grey list in early 2025, as initially targeted.

    The statement noted that the NFIU Chief Executive Officer, Ms. Hafsat Abubakar Bakari’s, participated in the Plenary meeting. 

    Read Also: 2,659 jostles for NNPC foundation opportunities

    As the current Chair of the Technical Commission of the Intergovernmental Action Group Against Money Laundering in West Africa (GIABA), Ms. Bakari reaffirmed Nigeria’s commitment to fully implementing the Action Plan.  She also provided updates on GIABA’s progress in strengthening its technical capacity to combat financial crimes.

    The FATF grey list serves as a monitoring mechanism for countries with strategic deficiencies in their Anti-Money Laundering/Counter-Financing of Terrorism (AML/CFT) regimes.  Inclusion on this list prompts countries to address these deficiencies  within a specified timeframe.

    The presence of high-level representatives from Nigeria, including the heads of the Economic and Financial Crimes Commission (EFCC) and the Special Control Unit against Money Laundering (SCUML), underlines the government’s commitment to tackling financial crimes and achieving a more robust AML/CFT framework.

  • Nigeria Closer to Exiting FATF Grey List: Efforts Applauded

    Nigeria Closer to Exiting FATF Grey List: Efforts Applauded

    Nigeria is on the right track to exiting the Financial Action Task Force (FATF) grey list, a move that will boost its international financial standing. This comes after the country successfully implemented key reforms and addressed 13 out of 15 action points outlined by the FATF to combat money laundering and terrorism financing.

    This progress has been widely applauded, demonstrating Nigeria’s commitment to strengthening its financial system and creating a safe environment for businesses and investors. Exiting the grey list will further enhance Nigeria’s reputation and open up new economic opportunities.

    The Vice-President of the FATF Jeremy Weil made this disclosure during the 40th Inter-Governmental Action Group against Money Laundering (GIABA) Technical Commission and Plenary Meetings which held in Abuja recently, who attended the meeting.

    The FATF had in February placed Nigeria on its grey list and expected the country to make significant improvements in 15 areas.

    The Director/CEO of the Nigerian Financial Intelligence Unit (NFIU), Modibbo Hamman Tukur said that based on the efforts made by all bodies in Nigeria involved in the efforts to tackle the identified areas, the country was able to tackle 13 out of the 15 action points identified.

    In the FATF process, once a country is grey listed, it is given an Action Plan which details the actions it is expected to take within agreed timelines in order to demonstrate the effectiveness of its AML/CFT regime, and, therefore, exit the greylist. 

    Nigeria was placed on the greylist in February 2023 and was given a 15-item Action Plan with deadlines spanning up till May 2025. 

    In fact, the average timeframe of countries’ exit out of the FATF greylist is two (2) years. For example, Barbados, Jamaica & Uganda have been under the process since February 2020. Many other jurisdictions have remained on the greylist since 2021. They are not failing the FATF review, they are only expected to sustain progress and implement action items before agreed timelines. 

    The inclusion of countries in the list is predicated on an agreement that the country has engaged with the FATF, has taken steps to improve the effectiveness of its AML/CFT systems and has expressed political commitment at the highest levels to sustaining this progress. 

    Also, countries under the International Cooperation Review Group (ICRG) greylist are expected to report on progress achieved in the implementation of the action items every four months, at the FATF plenary meetings. Therefore, no country is expected to evidence complete implementation of all its action items within the first progress report. 

    Read Also: Nigeria exits FATF grey list, rededicates commitment to fight against money laundering

    The NFIU would like to reiterate that contrary to some insinuation Nigeria has not fallen behind any of the timelines given by the FATF. In fact, out of the fifteen (15) action items on Nigeria’s Action Plan, thirteen (13) of them have already been assessed as Partly Addressed. It is worthy to note that under the FATF greylist, the global watchdog is interested only on progress that can be sustained over time. It is therefore impossible to “meet” the FATF’s “recommendations” within eight months.

    In the same vein and under a separate process coordinated by the Inter-Governmental Action Group against Money Laundering (GIABA), Nigeria’s framework for criminalizing money laundering and terrorist financing has been rerated to be Compliant and Largely Compliant respectively. 

    Sani Tukur, Head of Media at the NFIU said, it is gladdening to note that Nigeria has not been faulted by the FATF, and the country has not failed to scale any reviews by the FATF. All relevant authorities are working earnestly to fully implement Nigeria’s 15 action items before the timelines elapse.

  • FATF: Probing compliance with anti-money laundering rules

    The Financial Action Task Force (FATF) team will this month conduct its annual Mutual Evaluation on Nigeria. The exercise allows it to assess Nigeria’s compliance with the Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) rules. The team will be assessing banks’ and Bureaux de Change (BDC) operators’ compliance level, writes COLLINS NWEZE.

    The sorry state of public institutions in the Economic Community of West African States (ECOWAS) is disturbing. In many public schools, students learn while sitting on the floor, hospitals lack basic drugs, while road networks are little better than death traps.

    These societal ills thrive where corruption and illicit financial flows are rampant and Africa has remained one of the biggest losers, with over $30.4 billion ferried out of the continent annually.

    To tackle Illicit Financial Flows (IFFs) in Nigeria, the Financial Action Task Force (FATF) will, this month, conduct stringent country evaluation and monitoring process in Nigeria during which banks and Bureaux de Change (BDCs) will be visited and assessed.

    The FATF, the global standard-setter in the fight against money laundering and the financing of terrorism and proliferation of weapons of mass destruction, conducts peer reviews of each member on an ongoing basis, providing an in-depth description and analysis of each country’s system for preventing criminal abuse of the financial system.

    The BDCs are conversant with the threats and dangers posed by Money Laundering and Terrorist Financing (ML/TF) in Nigeria, Africa and globally, and are helping to tackle the menace.

    President, Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, said the group, in collaboration with regulatory agencies and key government parastatals, conducts series of trainings to ensure compliance by its members.

    With over $30.4billion ferried out of Africa annually, ABCON is intensifying its commitment to fighting money laundering and terrorist financing by ensuring that its members comply with regulations in doing their business. Gwadabe said the group is already equipping over 4,500 BDCs with the right technology and skills to tackle illicit financial flows within the country.

    He said the BDCs meet regularly with regulators, government agencies/officials and experts to analyse, monitor and identify strategies for effective implementation of Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) measures.

    He said the BDCs would welcome the FATF Mutual Evaluation team to Nigeria, saying the FATF assessment was designed to evaluate the implementation and effectiveness of the laws, regulations and other measures required to ascertain the effectiveness of the AML/CFT regime.

    The Mutual Evaluation will equally provide information on the progress made by Nigeria in meeting its obligations towards the FATF Recommendations.

    ABCON has, over the years, established itself as a key player in the Bureaux de Change (BDC) industry, and has also made several commitments and sacrifices to ensure that the sector continues to thrive and its members follow global best practices in the retail of foreign exchange to end users.

    The Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) is at the centre of the fight against the menace and terrorist financing across the Economic Community of West African States (ECOWAS).

    According to the group, about $30.4 billion is illegally transferred out of Africa yearly.  To stem the menace, GIABA is empowering key institutions to tackle illicit financial flows within the region.

    GIABA information Manager, Lagos Office, Timothy Melaye, said the Financial Action Task Force (FATF) requires countries to identify, asses and understand the Money Laundering/Terrorist Financing (ML/TF) risks to which they are exposed, take measures and mobilise resources to ensure that such risks are mitigated.

    “GIABA is a change agent. We build capacity, collaborate and sanction countries when they refuse to comply with the Financial Action Task Force (FATF) 40 recommendations. We also promote the economies of member ECOWAS states,” he said.

    FATF Mutual Evaluation and BDCs’Preparations 

    Gwadabe disclosed that ahead of the FATF Team visit, the ABCON, in collaboration with the Central Bank of Nigeria (CBN), is organising a sensitisation workshop for over 4,500 licensed BDCs in Nigeria. The workshop will hold in the six geo-political zones.

    He said as the global body that sets standard for AML/CFT efforts, the FATF team will assess banks and other financial institutions’ compliance with the AML/CFT measures, saying like in other previous visits, the FATF team will carry out checks at the branches of selected banks and BDCs across the country, as well as the airports and land borders.

    Gwadabe said Nigeria, which has been in the forefront of mentoring other member states in the development of their AML/CFT systems, has largely addressed its action plan by enacting legislation to criminalise money laundering and terrorist financing. The country is also implementing procedures to identify and freeze terrorist assets and ensure that customer due diligence requirements apply to all financial instructions.

    BDCs’ Compliance/Digitisation of Operations

    Gwadabe said BDCs have met a number of compliance requirements specified by FATF and local regulators, saying they have conducted enhanced due diligence, a major compliance requirement on some high-risk customers. He said the collation and reporting of foreign currency transactions and suspicious transactions by BDCs are now fully automated.

    He saud ABCON had in February, launched its Live Run Automation Portal in Lagos, stating that the technology automates all BDC Operations with those of Nigeria Inter-Bank Settlement System (NIBSS), Nigeria Financial Intelligence Unit (NFIU) and the Central Bank of Nigeria (CBN), enabling improved compliance of the BDCs with set regulations.

    The platform allows BDCs send their reports online real time, thereby removing the challenge of manual rendition of reports. The project has given a favourable rating in the perception index of BDCs in Nigeria especially in the eyes of international investors.

    Gwadabe said we are in the digital age, BDC operators under his leadership are committed to staying ahead of the competition by deploying time-tested technology to deliver effective services to customers and ensure compliance. He said the Live Run portal has enhanced BDCs compliance with set regulations and promoted market integrity, pointing out that the portal has sustained transparent transactions in the BDC corridor, boosted members morale  and ensured their continuous operations.

    Continuing Anti-Money Laundering War

    Gwadabe said public institutions in ECOWAS region have suffered immensely from the corruption going on in the public and private sectors, saying  ABCON is aware of the growing concerns over illicit financial flows (IFFs) from West African economies and the need to tackle them by key stakeholders within the region.

    He acknowledged the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA’s) 2016 – 2020 Strategic Plan, which showed that the Global Financial Integrity (GFI), the World Bank, the African Development Bank (AfDB), the Africa Progress Panel and the African Union’s High Level Panel on Illicit Financial Flows from Africa all paint a grim profile of the problem.

    A joint study conducted by the GFI and the AfDB showed that between 2000 and 2009, about $30.4 billion was illicitly transferred out of Africa each year. Over a longer period of 30 years, calculated from 1980, the resource drain was between $1.2 and $1.3 trillion. Outflows from West and Central Africa stood at (37 per cent), followed by North Africa (31 per cent) and Southern Africa (27 per cent). The IFFs are derived from various predicate offences of money laundering.

    Partnerships/Capacity Building for BDCs

    ABCON, severally, organised trainings for its members, and at other times, partnered NFIU and the EFCC to build capacity for operators.

    They have educated BDC operators on how they can help in tackling money laundering, terrorist financing and the benefits of keeping records of their transactions.

    The anti-money laundering training that ABCON organised with NFIU and EFCC in Lagos was meant to familiarise BDCs with the process of money laundering — the criminal business used to disguise the true origin and ownership of illegal cash — and the laws that make it a crime.

    Speaking during the sensitisation programme against money laundering and terrorism financing campaign at MM2, Lagos, which was attended by many BDC operators, the Acting Chairman, EFCC, Ibrahim Magu, called for continuous sensitisation on issues around AML/CFT reporting to improve transparency in BDCs operations.

    He said the EFCC would continue to campaign for financial integrity and transparency in BDCs’ operations. Other stakeholders at the event also spoke on the use of BDCs for illicit political transactions, illegal border cash evacuation, reporting of suspicious transactions, fraud accounts transactions and cash dollar deposits on domiciliary accounts.

    The NFIU/EFCC/ABCON goal is to ensure that BDCs are not used to launder funds by Politically Exposed Persons (PEPs). Their target was also to upscale BDCs’ compliance with the AML/CFT for Banks and Other Financial Institutions in Nigeria, Regulations 2013.

    These capacity building workshops have helped BDCS to understand how to raise and submit both the Suspicious Transaction Reports (STRs) and Currency Transaction Reports (CTRs) to regulators.

    Report Filling by BDCs

    ABCON has continued to ensure that BDCs file their reports as and  when due. They file reports on all transactions from N10 million for companies and N5 million for individuals. The reports are sent on weekly basis  to NFIU, CBN and EFCC.

    The BDCs also do customers Know Your Customer (KYC) and due diligence reports.

    Daily Transaction Returns (DTR) gives details of the total sales made for the day by the BDC and comes in as DTR 202, DTR 217, DTR 305 and DTR 315.

    The DTR 217 return gives the information of the customers of whom the forex was sold to. Information like, the name, the international Passport number, Bank Verification Number, address, TIN number, email address among others while DTR 305 provides details of the customers as well their destination and reason for the purchase of forex. The total amount of forex sold to them is also mentioned with the transaction date.

  • ABCON alerts public over fake $100 bills import from India

    .Gets CBN, EFCC nod on campaign against fake currency

     

    The Association of Bureaux De Change Operators of Nigeria ( ABCON ) on Friday alerted the public over ongoing security investigation on $100 bills being imported from India into Nigeria.

    The ABCON President, Alhaji Aminu Gwadabe, who disclosed the development to financial journalists after the group’s National Executive Council (NEC) Meeting in Lagos, said the $100 bill is majorly counterfeited because of huge profit margins that come with it.

    He said some of the fraudsters objectives is not only to make profit, but to undermine Nigeria chances for automatic membership of the Financial Action Task Force (FATF) after assessment of the country’s financial system scheduled for the first quarter of this year.

    The ABCON boss said the issue of fake dollar in circulation has been observed and reported at the relevant security agencies adding that the ABCON, has in the interest of the economy and Bureaux De Change (BDCs) businesses, secured Central Bank of Nigeria (CBN) and Economic and Financial Crimes Commission (EFCC) backing to begin nationwide campaign against fake currencies in the country.

    He said rising cases of fake currencies in circulation has led to huge losses to BDC operators and the economy.

    Gwadabe said that ABCON, is educating the public on how to identify fake dollar bills in order to protect the image of the country in the eyes of foreign investors.

    “It is part of our objectives which in enshrined on our constitution as an association to eliminate the incidences of fake currencies circulation thereby enhancing the image of the country and transparency in our operations,” he said.

    Gwadabe said the ABCON NEC has therefore released a guide to all BDCs on how to detect a fake dollar bill. He disclosed that there are seven dollar bills of $1, $2, $5, $10, $20, $50 and $100 and seven steps to authenticate them.

    “The weight of each bill is one gram, 2.61 inches wide and 6.14 inches length. It is 75 per cent cotton and 25 per cent linen. Your finger can feel thickness and texture. Besides, the portrait watermark is partly overlapped by the Treasury seal, while the $100 bill is printed on the right side of the bill. The strip is thin, faint and runs vertically from top to bottom to the left of the watermark portrait. Also, the 3D security ribbon, also called the thread, is bright blue and vertical on the bill,” he said.

    Continuing, Gwadabe explained that the raised printing feels rough on right shoulder of Benjamin Franklin portrait while the colour shifting ink works under ultraviolet light.

    He added that the dollar bill undergoes micro printing, which is the production of recognizable patterns or characters in the bill at a scale that requires magnification to read with the naked eye. To the unaided eye, the text may appear as a solid line.

    He said that currency commonly exhibits the highest quality (smallest size) of microprint because it demands the highest level of counterfeiting deterrence.

    Gwadabe said the BDCs have over the years, remained a potent monetary policy tool for exchange rate stability and promoting transparent foreign exchange operations in the country.

    “The BDCs have helped the government in creating over 30,000 jobs, thereby reducing the unemployment rate in Nigeria. The BDCs have continued to make foreign exchange available to the critical retail end-users thereby deepening forex access in the country. This campaign against fake dollar is aimed at ensuring that forex users get value for their money,” he said.

    Continuing, Gwadabe said that BDCs have also been enhancing price discovery and transparency in the foreign exchange market.

    “The operations of BDCs have also raised the level of investors’ confidence and diaspora remittances in the country. The BDCs under my leadership will continue to operate within set regulations and highest level of transparency in forex dealings,” he stated.

  • Nigeria gets GIABA’s nod to join FATF

    The Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) has recommended Nigeria for membership of the Financial Action Task Force (FATF). The Ad Hoc Group on Membership (AHGM), in its report presented to the FATF Plenary for this year in Paris, recommended Nigeria, Israel, Malaysia and Saudi Arabia for membership.

    Nigeria, the only candidate from Africa, was recommended based on the size of its economy, extent of implementation of Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) measures, involvement in GIABA work and high political commitment to advancing the implementation of AML/CFT regime of acceptable international standard.

    GIABA Director-General  Adama Coulibaly expressed appreciation to the AHGM for recommending Nigeria. He said the country plays a major role in the affairs of GIABA and has been one of the regional champions mentoring other member states in the development of their AML/CFT systems.

    According to him, Nigeria is the largest contributor to the budget of Economic Community of West African States (ECOWAS), the parent body from which GIABA derives its budget, thus facilitating the effective operation of GIABA.

    He said: “GIABA is fully convinced that Nigeria’s membership of the FATF will definitely assist in advancing the frontiers of robust AML/CFT measures in West Africa. GIABA has been in constant engagement with Nigeria and the country has demonstrated commitment at all levels (political, operational/technical) to ensure that its AML/CFT regime is in line with acceptable international standards.”

    In a  statement endorsed by Stephen Oronsaye, Chairman, Nigeria Presidential Committee on FATF on behalf of the Honourable Minister of Justice/Attorney General of the Federation of Nigeria, Mr. Mohammed Adoke, Nigeria pledged its political commitment towards the ideals of FATF and the continued involvement of Nigeria in the global fight against money laundering and terrorist financing.

    The FATF will engage with Nigeria to ensure its admission. FATF is the global body that sets standard for AML/CFT efforts.