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  • GIABA okays $650,000 grants for CSOs to fight money laundering

    GIABA okays $650,000 grants for CSOs to fight money laundering

    The Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA) has provided $650,000 Civil Society Organisations (CSOs) to fight money and terrorism financing in the West Africa sub-region through awareness creation against the scourges.

    The funds were provided to the benefiting CSOs between 2024 and 2025 to civil.    The grants comprised $350,000 in 2024 and $300,000 granted to 12 CSOs in the region “to create massive awareness and advocacy around assets recovery and management” in the member-states.

        Director-General of GIABA, Edwin Harris, disclosed this in Lagos during the regional sensitisation seminar for CSOs  with theme: “Requirements for fighting against money laundering and countering the financing of terrorism (AML/CFT)”.

        The workshop provided opportunity for GIABA to advance the promotion of a relationship with civil society organisations (CSOs) involved in the fight against these scourges; to encourage CSOs to conduct outreach campaigns to influence the effective implementation of AML/CFT measures; to use their platform for the dissemination, publication and sharing of information on GIABA and AML/CFT; to effectively engage CSOs in the fight against these scourges, etc.

    READ ALSO: PDP to INEC: Tell us our secretary!

        GIABA said that combating the financing of terrorism and fighting against money laundering (AML/CFT) now more than ever requires the involvement of all stakeholders. Indeed, since 2011, GIABA’s strategic priorities have included promoting strategic partnerships with the private sector, civil society and other key stakeholders. Consequently, it is crucial to raise awareness among CSOs about AML/CFT and the predicate offences with a view to adopting best AML/CFT practices.

        Harris explained that GIABA is West Africa’s regional body against money laundering, terrorist financing, and proliferation financing (ML/TF/PF).

        GIABA was formally established as a specialised institution of the Economic Community of West African States (ECOWAS) by the Authority of Heads of State and Government of ECOWAS in December, 2000 with the responsibility “to strengthen its member-states’ capacity to prevent and control money laundering and terrorist financing in the region.”

        The DG said the organisation recognises the valuable contribution civil society can make to the decision-making processes hence the partnership.

        He stressed that money laundering and terrorism financing must be nipped in the bud to guarantee the economic prosperity of the sub-region.

        He stated that the 2024 grant provided through a competitive bidding process focused on sensitising and mobilising the public to commonly support the fight against terrorism and violent extremism in the North East Nigeria and the Mano River Union (MRU) covering Sierra Leone, Liberia and Guinea.

        “This year, 2025, GIABA has already released another 300,000 US Dollars to 12 CSOs in the region to create massive awareness and advocacy around asset recovery and management in our member-states.

        “The immediate outcomes as we are seeing are already encouraging. I therefore urge you all to continue to work harder for a peaceful and economically viable West Africa,” he said.

        Timothy Melaye, Head of Information at GIABA, said the workshop was aimed at deepening engagement with the CSOs in its efforts to stop terrorism financing in West Africa.

        “GIABA will continue to engage the CSOs in our work to ensure a safe, sound and resilient region of West Africa,” he said.

  • GIABA urges FIU to prioritise integrity

    GIABA urges FIU to prioritise integrity

    The Director-General, Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), Edwin W. Harris Jr., has called on the Financial Intelligence Units (FIUs) in Africa to eliminate bribery from their operations and focus on advancing the collective interests of their countries and the region.

    GIABA is West Africa’s regional body against money laundering, terrorist financing, and Proliferation Financing (ML/TF/PF).

    Speaking at the 2025 National Anti-Money Laundering, Counter-Financing of Terrorism and Proliferation (AML/CFT/CPF) Summit in Abuja, Harris emphasized the critical need for inter-agency cooperation and integrity in the fight against financial crimes.

    Harris said: “It is time that we work together, enhance inter-agency cooperation, remove bribery from our operational duties, and work in the interests of our country and the region. It is important to note that this causes reputational risks for our country.”

    He stressed that corruption within FIUs not only tarnishes the reputation of nations but also hinders the inflow of critical investments necessary for addressing issues like youth unemployment.

    “It also affects investments that are highly needed to take care of youth unemployment in all parts of our country,” Harris added.

    He commended Nigeria’s significant contributions to the fight against money laundering and terrorist financing in West Africa. He noted Nigeria’s leadership in providing financial and technical support to smaller FIUs across the region and noted the country’s substantial role in GIABA’s mutual evaluation process.

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    “Almost all of our assessors come from Nigeria. Most of the best brains that we rely on in this fight come from Nigeria. Additionally, Nigeria has provided good financial and technical support to most of the smallest FIUs in our region,” Harris said.

    Despite Nigeria’s commendable efforts, Harris acknowledged the challenges the country faces, particularly its inclusion on the Financial Action Task Force (FATF) grey list. “With all of this, why is Nigeria here on the grey list? We think that this provides an opportunity for all policymakers to work and have an open conversation,” he remarked.

    Harris expressed confidence in Nigeria’s capacity to lead by example, stating that: “Nigeria will remain a pace setter, enhancing the integrity of its financial system so that other countries will take the example of Nigeria.”

    He provided an update on GIABA’s recent mutual evaluation efforts. The second round of evaluations, completed in November 2024, revealed significant progress in technical compliance across West African countries, including Nigeria.

    “Almost all of our countries, including Nigeria, did well on the technical compliance,” Harris noted. However, he pointed out that six West African countries remain on the FATF grey list, largely due to their failure to meet certain criteria, including the $5 billion threshold.

    “Under the second round of evaluation, six of our countries went under the grey list. Because of the criteria and threshold of $5 billion, some of our countries did not make it,” he explained.

    Reaffirming GIABA’s commitment to supporting Nigeria and other West African nations, Harris said, “GIABA will continue to support the NFIU and all other institutions in this fight. All of our resources and technical support remain at your disposal because we believe that Nigeria is not only a strategic partner with GIABA but is ahead in supporting GIABA to strengthen most of our countries.”

  • How to end terrorism, by DSS, GIABA, NDC, others

    How to end terrorism, by DSS, GIABA, NDC, others

    The Department of State Services (DSS), the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), the National Defence College (NDC), and others have suggested ways terrorism and related crimes could be effectively tamed in the country.

    The Director General of the DSS, Yusuf Bichi; the Director General of GIABA, Edwin Harris Jr.; the Commandant of the NDC, Rear Admiral Olumuyiwa Olotu and the Chief Executive Officer of the Nigerian Financial Intelligence Unit (NFIU), Mrs. Hafsat Bakari said efforts should be directed at blocking the sources of finance opened to terrorist organisations.

    Bichi, Harris Jr, Olotu, and Bakari also stressed the need for enhanced inter-country collaboration in intelligence sharing and counter-terrorism initiatives.

    They spoke in Abuja at the opening session of the event tagged: “Training of trainers (ToT) on countering the financing of Terrorism (CFT) for Anglophone GIABA member states,” organised by GIABA.

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    Bichi, who was represented by the Director of Training and Staff Development, Mrs. Bolatito Sure-Olufe, said intelligence sharing within the region will go a long way in aiding efforts at countering terrorism.

    The DSS boss noted that while military and intelligence efforts have achieved notable successes in disrupting terrorist operations, it was imperative that terrorist financing networks must be disrupted.

    He added that depriving terror groups of the funds that fuel their activities was crucial to undermining their capabilities and ultimately defeating them.

    Bichi noted: “Terrorist organizations rely heavily on a steady flow of funds to sustain their operations, including recruitment, training, procurement of weapons and explosives, and execution of attacks.

    “By targeting their financial lifelines, we can strike at the very heart of these groups, limiting their reach and hampering their ability to carry out acts of violence.

    “The financial trail left by terrorist financing activities provides invaluable intelligence that can help uncover the structure, connections, and intentions of these networks, enabling more targeted and effective interventions.

    “Countering the financing of terrorism is a collective responsibility that demands international cooperation and collaboration.”

    Harris Jr. said money laundering and the financing of terrorism have continued to adversely impact the socio-economic development, peace, and security of ECOWAS member states and beyond.

    He noted in the last decade, the ECOWAS community has experienced an increasing level of terrorism, radicalization, and violent extremisms at an alarming rate.

    He added: “Counter-terrorism can no longer be the exclusive domain of the military services.

    “Studies by GIABA and of the Financial Action Task Force (FATF) have rightly revealed that terrorists are increasingly using legitimate commercial enterprises to raise funds, as well as non-profit organizations, the abusive exploitation of extractive and mining resources, donations, crowdfunding, and above all, the proceeds of criminal activities such as kidnapping for ransom, extortion, illicit drug trafficking, illicit trade in small arms and light weapons, trafficking in arts and antics, etc.

    “Terrorists also manage to move these collected funds through front companies, money or value couriers, using payment methods such as prepaid cards, mobile banking, or virtual assets.

    “It is therefore important to optimize the technical assistance provided to the GIABA member states by making knowledge, capacities and expertise available locally, and by ensuring that resources are distributed in a more effective, efficient, and coordinated manner.

    “Hence the training of trainers’ project, which has been specially designed to meet the needs of our countries,” Harris Jr said.

    Represented by the Provost of the NDC, Prof. Adam Ahmed, Olotu suggested ways progress could be achieved in efforts to rid the sub-region of terrorism and related challenges.

    He added: “If you fight terrorism by fighting those funding them, it will make your job easier.”

    Mrs. Bakari said blocking the channels, routes, and techniques used to move these funds within ECOWAS nations and across its borders requires cooperation not just at a national level but at a regional level.

    The NFIU boss noted that “one of the key pillars in our collective fight against terrorism is countering the financing that sustains these nefarious activities.

    “Across the sub-region, terrorist groups have continued to threaten the lives, well-being, and commonwealth of our citizens.

    “While the governments of our member states have taken decisive action to combat this threat using kinetic and non-kinetic means, it is clear that one of the most effective tools in our arsenal and the global fight against terror is identifying, pursuing, and restricting access to the funds and resources they need to carry out their activities.

    “The financing which enables them to purchase and transport weapons and materials, and pay their fighters is the lifeblood of any terrorist organisation.

    Blocking the channels, routes, and techniques used to move these funds within our nations and across our borders requires cooperation not just at a national level but at a regional level.

    “This can only be achieved through a proper understanding and application of the role of the military, intelligence services, law enforcement agencies, prosecutors and the judiciary in this collective endeavour,” Mrs. Bakari said.

  • Why terrorism persists in West Africa, by DSS, GIABA, NCTC, others

    Why terrorism persists in West Africa, by DSS, GIABA, NCTC, others

    The Director General of the Department of State Services (DSS), Yusuf Bichi, along with the coordinator of the National Counter-Terrorism Centre (NCTC), Rear Admiral Yaminu Musa (retired), and the DG of the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), Edwin Harris Jr., have highlighted the persistent challenge of terrorist activities in West Africa.

    They emphasized the importance of effectively targeting the financial lifelines of terrorist organizations and disrupting or sealing their accounts as crucial measures in combating terrorism in the region.

    The security experts underscored the need for enhanced collaboration among all relevant government agencies to address this issue effectively.

    These remarks were made in Abuja on Monday, February 26, during the opening session of the Regional Training Workshop for the Development and Empowerment of Counter-Financing Terrorism Policies Mechanisms in West Africa, organized by GIABA.

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    Bichi, who was represented by Adeoye Adeleke noted that from the devastating attack on innocent civilians to the subversive funding mechanism that sustains terrorist networks, “we are confronted with terrorism a multifaceted challenges that demand a comprehensive and coordinated response.”

    He added: “At the heart of our effort to counter terrorism lies the need to disrupt and dismantle the financial network that enables its operations.”

    Musa said although it may be conceded that cutting off the source of terror financing may not completely eradicate terrorism, “disrupting the funding network or cutting off the various sources of finance open to terrorist organisations could affect the frequency and magnitude of attacks undertaken by terrorist groups.

    He said: “Countering the financing of terrorism (CFT) is a highly complex endeavour that involves many different actors including violent non-state armed group and their supporters.

    “Thus, disrupting the network of terrorism financing requires developing the capacity of various government actors saddled with this responsibility.”

    Harris Jr spoke about the many measures by GIABA to stem terrorist financing and money laundering which are crimes that fuel terrorism.

    He argued that counterterrorism could no longer be the exclusive domain of the military services given the recent discovery that “terrorists are increasingly using legitimate commercial enterprises to raise funds, as well as non-profit organizations (NPOs),” among others.

    Harris Jr argued that countering the financing of terrorism in West Africa, on all frontiers, could only be achieved “through firm determination and cooperation of all states predicated on a comprehensive approach by identifying terrorists sources of funding and networks within the sub-region.

    “This means that states’ efforts should include collaborative efforts at denying the affiliated terrorist groups any safe haven, cross-border movements, access to funding and space to extend their reach.

    “Going forward, such collaboration to combating terrorism financing must be predicated on continued intelligence gathering and sharing, tracking of terrorism sources of funding and means of transfer of funds as well as joint investigations,” the GIABA DG said.

    The Commandant of National Defence College (NDC), Rear Admiral Olumuyiwa Olotu, who was represented Dr. Adam Abdullahi said: “The moment we are able to interrupt the financing of terrorist groups, about 50 percent of our problem is solved.”

    He noted that the majority of the sources of funds for these criminal elements are from unconventional means like kidnapping for ransom, or illegal declaration of taxation, among others.

    He added: “The moment we are able to seal off these unofficial sources of income and identify ways of blocking them as well as some official sources like religious organisations and other parody NGOs who are supporting terrorism, the better for us.”

    The Director/Chief Executive Officer of the Nigerian Financial Intelligence Unit (NFIU), Hafsat Bakari, who was represented by Mohammed Jiya said efforts to counter terrorism in the sub-region “involve both military operations and initiatives aimed at addressing the underlying factors driving radicalization and recruitment into extremist groups.

    “Regional cooperation, intelligence-sharing, and capacity-building efforts are also crucial in addressing the transnational nature of the threat posed by terrorism in West Africa.”

  • GIABA gets new Director-General

    The Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) has appointed Kimelabalou Aba, a Togolese as its Director-General. He takes over from Adama Coulibaly of Cote d’Ivoire who led GIABA from February 3, 2014 to February 28, 2018.

    He  is a Magistrate. He obtained an M.Phil. in 1999, Option Magistracy, from the National School of Administration (ENA) Lomé-Togo. Previously, he completed his primary and secondary studies leading to an Advanced Level School Certificate in Philosophy obtained at the Chaminade College in Kara, Togo, which led him to higher education.

    He opted for the Faculty of Law at the University of Benin in Lomé, Togo, where he graduated with a Bachelor’s degree in Private Law obtained in 1994 and a Master’s degree in Business Law a year later.

    ABA also holds a Post-graduate Professional Diploma in Fundamental Rights from the University of Nantes (France) in 2002 and obtained a Professional Masters’ Degree in African Cyber Law from the Gaston Berger University in Saint-Louis, Senegal.

    Professionally, ABA has a wealth of diversified professional experiences. He served as a Judge at the African Court of Human and People’s Rights (ACHPR) in Arusha, Tanzania, in 2013 and 2014.

    At national level, he has alternately served as Deputy Judge and Judge at the Lomé High Court from 2000 to 2006, Deputy State Prosecutor at the Lomé High Court from 2006 to 2012, then as Chief Justice President of the Vogan High Court from 2012 to 2014. Prior to his appointment as GIABA Director General, Mr. ABA held the position of Chief Justice of the Atakpamé Lower High Court in Togo since 2014.

    Kimelabalou ABA also has a wealth of expertise in electoral matters. Thus, he served as Chairman of the Independent Local Electoral Commissions (TISC) of Vo and Ogou Districts from 2012 to 2015.

    The new Director General of GIABA is very familiar with the Institution he has just been appointed to head, having served as Expert representing the Ministry of Justice of Togo at the GIABA Technical Commission Meetings from 2010 to 2017 and as Co-chair of the Evaluation and Compliance Group (ECG) since November 2016, a position he held until his appointment.

    The Director General has participated in several seminars and trainings on Anti-Money Laundering and Counter Financing of Terrorism and Proliferation, human rights, international criminal law, cybersecurity/cybercrime, intellectual property as well as the OHADA Law, including:

  • GIABA: Tracking Africa’s $30.4b illegally transferred funds

    The 29th Technical Commission/Plenary Meeting of the Inter-governmental Action Group Against Money Laundering in West Africa (GIABA) is billed for Somone, Republic of Senegal, from May 7th to 11th. Member states are to discuss the threats and challenges associated with Money Laundering and Terrorist Financing (ML/TF) in the region and address pertinent issues requiring concerted and harmonised approach to resolve. COLLINS NWEZE writes on ongoing efforts to tackle money laundering in the region.

    WITH about $30.4 billion being ferried out of Africa annually, the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) is intensifying its commitment to fight money laundering and terrorist financing across the Economic Community of West African States (ECOWAS).

    It (GIABA) is already empowering key institutions to tackle illicit financial flows within the region.

    The group will next week, during its plenary’s preliminary meetings in Somone, Republic of Senegal, ensure that the follow-up reports on the Mutual Evaluation (ME) of Sao Tome & Principe, Benin, Nigeria, Sierra Leone, Togo, The Union of the Comoros and Guinea-Bissau, is considered by the Evaluation and Compliance Group (ECG). The ECG will also consider the first follow-up report to the second round of mutual evaluation of Ghana.

    The Financial Action Task Force-style regional Body (FSRB), GIABA meets twice a year with its officials and experts to analyze, monitor and identify strategies for the effective implementation of AML/CFT measures in member states.

    The mutual evaluation is designed to assess the implementation and effectiveness of the laws, regulations or other measures required by the core criteria, to ascertain whether all the requisite measures have been comprehensively implemented and whether the AML/CFT regime is effective.

    It also provides information on the progress made by every member state in meeting its obligations towards the Financial Action Task Force (FATF) Recommendations.

    According to GIABA, once the Mutual Evaluation Report (MER) of a country has been adopted, the secretariat monitors progress being made taking into account the deficiencies identified in the country’s AML/CFT regime.

    It said the follow-up process begins with the assessed country being required to present a report to the GIABA plenary a year after the adoption of its MER.

    Outlining the progress so far made, the group strives to address the deficiencies identified in its AML/CFT regime, with emphasis on the FATF core and key recommendations. Countries that fail to make any significant progress are placed on the enhanced follow-up process and therefore required to submit FURs to plenary every six months.

    Based on the principle of reciprocity, GIABA shares its MERs and FURs with the FATF, observer members from the World Bank, International Monetary Fund (IMF) and other FSRBs. This sharing guarantees the exchange of experiences, objectivity and transparency of the process.

    The opening of the 29th GIABA Technical Commission/Plenary Meeting will be attended by the GIABA line ministries. GIABA’s Director-General Kimelabalou Aba will present his maiden summary activity report. The Regional Forum of Financial Intelligence Units (FFIU), the meeting of the Risks, Trends and Methods Group (RTMG), and the outcomes of the FATF and Egmont Group Plenaries, will, among other things, be the key items on the agenda of the meeting.

     

    Nigeria’s case of

    non-compliance

     

    A Central Bank of Nigeria (CBN) Economic report said majority of the commercial banks fail to meet a number of compliance requirements specified by it.

    It was learnt that many banks failed to conduct enhanced due diligence, a major compliance requirement on some high-risk customers. Besides, the collation and reporting of foreign currency transactions and suspicious transactions were not fully automated in some banks.

    The CBN report showed that the apex bank conducted an anti-money laundering/combating terrorism financing compliance examination of 25 reporting banks.

    The examination was guided by the statutory provisions of the Money Laundering Prohibition Act, 2011 (as amended), the CBN’s AML/CFT Regulations, 2013 and recommendations of the Financial Action Task Force.

    However, the examination showed a number of gaps in customer due diligence and anti-money laundering reporting software among others.

    The report also showed that the first of the bi-annual review of the foreign exchange activities of 25 banks (21 commercial and four merchant banks) was conducted in April, last year, to ascertain the level of compliance with extant foreign exchange laws and regulations.

    The review covered foreign exchange operations for the period, October 1, 2016 to March 31, 2017. According to the CBN, major infractions observed included non-compliance with regulations, such as the concessionary rates specifically provided for utilisation of funds sourced from the Secondary Market Intervention Sales foreign exchange window; and non-issuance of certificates of capital importation to beneficiaries within the allowable time of 24 hours post receipt of funds.

     

    Why anti-money

    laundering war must go on

     

    The sorry state of public institutions within the ECOWAS region is disturbing. In many public schools, students learn sitting on the floors, the hospitals lack basic drugs, while the road networks are death traps.

    These societal ills thrive in societies where corruption and illicit financial flows are rampant. Director of Programmes and Projects at GIABA, ‘Buno Nduka, said that public institutions in ECOWAS region have suffered immensely from the corruption going on in public and private sectors of the economies.

    He spoke at a three-day regional workshop organised by GIABA on Investigative Reporting on Economic and Financial Crimes for Journalists from West African countries, in Saly, Senegal. He called on financial reports to develop the right skills to help the governments and public sector operators fight corruption and tackle illicit financial flows.

    Speaking at the event, he disclosed that the growing concerns over illicit financial flows (IFFs) from West African economies, and the need to tackle them by key stakeholders within the region.

    Nduka said the human trafficking, kidnapping, sexual exploitations, counterfeiting of currencies, extortion and outright fraud in the banking sector across the region must be checked by reporters through investigation.

    He aid reports on such sharp practices will strengthen law enforcers against criminals.

    Nduka cited 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 (AU Panel) 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.

    According to GIABA Information Manager, Timothy Melaye, the group remained a specialised institution of the ECOWAS as well as Financial Action Task Force – Styled Regional Body (FSRB) responsible for combating the scourge of Money Laundering and Terrorist Financing in West Africa.

    “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.

    Melaye, however, said that the group cannot sanction money launderers but can make public statements against countries with significant deficiencies in implementing the FATF recommendations.

    He said, such public statement against a blacklisted country, can dry up foreign investments into affected countries, and spread the message that such country is not safe for business.

    One of the facilitators, Head, Department of Mass Communication, University of Lagos, Prof. Abigail Ogwezzy-Ndisika, urged investigative journalists to strive to tell accurate and authentic stories that reflect reality.

    Speaking on the theme: “Dealing with sources in investigative journalism: Building trust and cooperation”, she said reporter should always use primary and secondary sources to give their reports authenticity.

    She said: “Every financial journalist should know is that no single source can provide all the information they might need even as each source likely leads to another.

    “And since some of the sources contradict each other, the financial journalists must find out where the weight of evidence lies. They have to seek original sources such as documents to determine which version is true.”

     

    Dangers of terrorist

    financing

     

    GIABA’s Strategic Plan 2016 to 2020, said some of the funds that support the violent extremism being experienced in some parts of the region either originate from West Africa or traverse it.

    It said the  escalation  of  terrorist  acts  being  committed  by  Boko  Haram,  Ansar  Dine,  Al  Qaeda  in  the Maghreb  (AQIM)  and  the  Movement  for  Oneness  and  Jihad  in  West  Africa  (MUJAO),  has attracted  regional  and  global  concern.

    In  September  2015,  Amnesty  International (AI)  reported  that from  January  2015,  Boko  Haram  had  killed  more  than  3,500  civilians  across  four  countries (Nigeria, Cameroun, Chad and Niger).

    The AI report said: “The resilience of the terrorist networks suggests that they have  been  innovative  in  sustaining  themselves,  using  various  methods  and  techniques  to  raise, move and utilize funds in order to carry out terrorist activities. Smuggling of goods has been found to be central to the financing of terrorist activities.”

    GIABA recognises that AML/CFT measures are always implemented in an environment where other priorities compete for the attention and resources of authorities; therefore, harnessing and  mobilizing  resources coupled  with  efficient  utilization  of  such  resources  is  critical.

     

  • GIABA moves against money laundering, terrorist financing

    The Intergovernmental Action Group against Money Laundering in West Africa (GIABA) has organised a regional workshop on developing effective frameworks and structures to fight Money Laundering and Terrorist Financing (ML/TF) through Non-profit Organisations (NPOs).

    The workshop, held in Abuja at the weekend enabled the agency to educate the NPOs on effective means of fighting money laundering and terrorist financing.

    In a statement, GIABA said the importance of NPOs in economic development, demonstrated through humanitarian and essential services, cannot be overemphasised.

    However, several studies have underscored the vulnerabilities of the NPO sector to abuse, particularly, for terrorism financing (TF) purposes. These reports include typologies reports on “The Risk of using Non-profit Organizations for Terrorist Purposes” published by FATF in 2017, and “Terrorist Financing in West and Central Africa” jointly published by FATF and GIABA in 2013 and updated in 2016.

    In addition to these typologies reports, it noted that last year, GIABA organised a regional workshop on Preventing the Abuse of Non-Profit Organisations (NPOs) for Terrorism Purposes in Lomé, Togo. The outcomes of the workshop highlighted numerous deficiencies, including in anti-terrorism structures and frameworks within the NPO sector, an understanding of the roles of NPOs in the implementation of FATF Recommendation 8, effective regulation of NPOs, among others.

    It said outcomes of the first round of Mutual Evaluation of GIABA member-states reveal that several of them were still grappling with some challenges, including inadequate sensitisation, inefficient regulation of NPOs, and gaps in domestic AML/CFT legal and regulatory frameworks for effective supervision of NPOs.

    “GIABA has designed, among other instruments, this awareness-raising and training programme to fill the gaps identified and improve on the performance of member-states in the implementation of FATF Recommendation 8. This Recommendation requires member countries to adopt legislative and regulatory measures to ensure that NPOs are not used for the purpose of financing terrorist activities,” it said.

    The workshop seeks to create a platform for in-depth reflection on best practices, establish a consensus and encourage cooperation and collaboration to prevent the abuse of NPOs for terrorism.

    Specifically, the workshop’s objectives are to sensitise and develop a common understanding among stakeholders, support to build effective and proportionate responses to TF risks through the NPO sector; identify the legal and regulatory gaps at domestic level in the region; and to enhance cooperation, coordination and commitment at national level between Governments and the NPO.

     

  • GIABA sensitises NPOs on fight against money laundering

    The Intergovernmental Action Group against Money Laundering in West Africa (GIABA) is holding a regional workshop on developing effective frameworks and structures to fight Money Laundering and Terrorist Financing (ML/TF) through Non-profit Organisations (NPOs).

    The workshop, scheduled to hold in Abuja, from today to Friday, will enable the agency educate the NPOs on the effective means of fighting money laundering and terrorist financing.

    In a statement, GIABA said the importance of NPOs in economic development, demonstrated through humanitarian and essential services, could not be overemphasised.

    However, several studies have underscored the vulnerabilities of the NPO sector to abuse, particularly for terrorism financing (TF) purposes. These include typologies reports on “The Risk of using Non-profit Organisations for Terrorist Purposes” published by FATF in 2017 and “Terrorist Financing in West and Central Africa” jointly published by FATF and GIABA in 2013 and updated in 2016.

    In addition, it noted that last year, GIABA organised a regional workshop on Preventing the Abuse of Non-profit Organisations (NPOs) for Terrorism Purposes in Lomé, Togo. The outcomes of the workshop highlighted numerous deficiencies, including in anti-terrorism structures and frameworks within the NPO sector, an understanding of the roles of NPOs in the implementation of FATF Recommendation 8, effective regulation of NPOs, among others.

    It said outcomes of the first round of Mutual Evaluation of GIABA member-states reveal that several member-states were still grappling with some challenges, including inadequate sensitisation, inefficient regulation of NPOs, and gaps in domestic AML/CFT legal and regulatory frameworks for effective supervision of NPOs.

    “GIABA has designed, among other instruments, this awareness-raising and training programme in order to fill the gaps identified and improve on the performance of Member States in the implementation of FATF Recommendation 8. This Recommendation requires member countries to adopt legislative and regulatory measures to ensure that NPOs are not used for the purpose of financing terrorist activities,” it said.

    The workshop seeks to create a platform for in-depth reflection on best practices, establish a consensus and encourage cooperation and collaboration to prevent the abuse of NPOs for terrorist purposes.

    Specifically, the workshop’s objectives are to sensitise and develop a common understanding among stakeholders, support to build effective and proportionate responses to TF risks through the NPO sector; identify the legal and regulatory gaps at domestic level in the region; and to enhance cooperation, coordination and commitment at national level between governments and the NPO.

     

  • ECOWAS Court to assist in combat against money laundering, terrorism financing 

    ECOWAS Court to assist in combat against money laundering, terrorism financing 

    …expresses concern over lack of access to court

    The ECOWAS Court has promised to assist Nigeria in the fight against money laundering and financing of terrorism within West African-region.

    The community’s court president, Justice Jerome Traore said the two scourge must be fought at all cost.

    He spoke at the opening ceremony of the 2016-2017 Legal year in Abuja with the theme “The  role of the ECOWAS Community Court of Justice in the fight against money laundering and financing of terrorism within the West African Sub-region.”

    Justice Traore said the court intended to offer assistance to ECOWAS and it’s members in the efforts being made towards the prevention and containment of these crimes.

    The court, he assured will work within it’s legal power to ensure the enforcement of the rules.

    He said, “This double-headed scourge must therefore be combated at all cost, and the Community Court of Justice, in it’s capacity as the principal legal organ of ECOWAS, cannot remain on the sidelines of this battle which is being fought almost all over the world, and notably within our ECOWAS space, for almost two decades.

    “The Court thus means to offer in resolute terms the needed assistance to ECOWAS and it’s member states in the efforts being made towards the prevention and containment of these crimes.

    “The Court will of course do so within the confines of the powers currently conferred upon it, by particularly ensuring, without sacrificing their potency, that the rules and procedure in force, are in all respects, in consonance with the observance of human rights and guarantee of the rule of law.”

    While also expressing the concern of the court to the lack of access to the court, Justice Troare said ECOWAS court is thinking with the idea of providing legal aid fund to empower destitute litigants.

    According to him, “The ECOWAS Court of justice remains concerned, in equal measure, by the issue of the need of ensuring ease of access to the Court. We are indeed conscious that, progress in the area of human rights defense-an area which virtually occupies the centre stage of the activities of our court today-is obtainable, in practical terms, by the extent of accessibility of litigants of the Court.

    “That is why, for the purposes of facilitating access to justice, it shall be necessary to provide the court with legal aid fund, so as to empower destitute litigants, whenever they deem themselves victims of arbitrariness, to cone before the Court, to claim their rights. It would be regrettable, to say the least, if for financial reasons, a community citizen should remain helpless while his rights are being abused.”

    He further promised that the “new Bureau of the Court intends to pursue and extend further the steps already taken, and it will do everything possible to ensure that the Community Court of Justice remains, as it has been in past, a guarantor of human rights and a safeguard against arbitrariness in the sub-region.”

    To thIS end, he added that “further steps will be taken towards improving upon the output of the Court.”

    “Also, in the course of this year, we will need to put in greater efforts to bring the court closer to those whose right it is to seek justice before our court, for a great number of those who desire to bring their case before the court do not always have the financial means required for doing so.

    “Some efforts have already been made in that direction, through the organisation of external court sessions in the member states of ECOWAS, but we can do more for the qualified potential litigants of our community who remain destitute.”

    The guest speaker, Col. Adama Coulibaly, Director General, Inter-Governmental Action Group against money laundering in West Africa (GIABA) explained that while there are differences between money laundering and financing of terrorism, the techniques used to launder money and finance terrorist activities/terrorism are very similar and in many instances identical.

    Coulibaly added that, “the effects of money laundering and financing of of terrorism are both difficult to quantify.”

    He therefore stressed that GIABA’s mandate is focused in ensuring the implementation of acceptable international anti-money laundering and combating the financing of terrorism measures.
    GIABA Boss, also expressed concern about the none adoption of the ECOWAS protocol for the prevention of corruption fifteen years after.

    He noted that the region could not enforced the protocol as it was yet to be ratified. So far only eight member states have ratified the protocol when it needs nine states to do so before it cam be enforced.

    GIABA is mandated by it’s statutes to combat the laundering of proceeds from crime and finance of terrorism.

  • ‘Why prosecution is key to anti-graft crusade’

    ‘Why prosecution is key to anti-graft crusade’

    How can the anti-graft war be won? It is by effective prosecution and conviction of looters, says Mr. Timothy Melaye, the Nigerian Head of Information Centre of the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA). He speaks with COLLINS NWEZE on GIABA’s efforts to curb financial crimes by empowering agencies, such as, Economic and Financial Crimes Commission (EFCC) and Nigeria Financial Intelligence Unit (NFIU).

    To what extent do you think bureau de change operators aid money laundering?

    What I would say is this, GIABA has put a lot of resources and efforts in training financial institutions and non-financial businesses and professionals and therefore I expect that the financial institutions across the region are fully aware of their responsibilities. There is what is called the committee of chief compliance officers of banks in Nigeria. GIABA has provided series of trainings to these officers to be able to make sure financial institutions comply with their responsibilities. Financial institutions do not have responsibility to investigate or prosecute anyone. Their responsibility is to stand as the gatekeeper, the money comes through the financial institutions or goes out through the financial institutions and where there are suspicious transactions, they have obligations as a sole responsibility to report such as suspicious transactions. It must be reported to Nigeria Financial Intelligence Unit (NFIU) and if a bank notices any suspicious transaction or what can be termed as a suspicious transaction, they have a responsibility to report too. After reporting, then they have carried out their due diligence responsibility. Now they need to carry out customer due diligence, identify your customers, now we have people who are not the actual owner of money or people who come in a disguise or people who come to open account fictitiously, or people who come as third party to open account in support of someone else. The suspicious transactions report says if my name is linked to the name of a prominent person who is considered as politically exposed persons, then the banks need to do enhanced due diligence reports on that. The report will make them file suspicious transactions so that all those who are linked can be identified, their transactions gotten and be properly documented.

    The Central Bank of Nigeria (CBN) is accusing some bureaux de change (BDC) of money laundering. Some of the operators were linked to the arm-for-cash scam; how did things get to this point?

    You see, there is a threshold on transactions for the BDCs. They were identified before. Now there are so many BDCs that are not registered, that are not known and if anything happens, you cannot trace them, you just see them on the roadside and you attend to them but now, BDCs are forced to register. If you have any transactions with registered BDCs, it is easy to track the transaction because you are supposed to take receipts. By such receipts, you will be able to know if they are registered or not. This is not a fight for only the CBN, for only the banks, for only the BDCs. It is a fight for everyone. Those of us that transact business with the BDCs, do you ever ask for receipt? Do you ever find if the BDC you are transacting with is registered? If he gives you fake currency, can you go back to him? Can you go back to his office? If you met him on the road, do you just go and stand on the road looking for him? So it’s a responsibility for us all to ensure that the society will remove quacks from the business. One of the things society needs to do is to make sure it puts in systems to ensure that crimes are reduced to the barest minimum if not absolutely eradicated. So one of the things that is put in place is to ensure the BDCs are operating within the ambit of the law. Apart from being delisted, there are lots of sanctions that can be meted out to erring BDCs. When you don’t have the laws, you have set yourself up for failure. So it is simple. When there is a lawless society, it is even illegal to be abiding by any law.

    There have been many policies around foreign exchange (forex) by the CBN; how realistic are some of these policies? What are the consequences if BDCs stop reporting their transactions to the regulator?

    The CBN has the responsibility of safeguarding and managing the financial systems and those decisions will be taken based on certain information that is available to them. Now BDCs can get forex on allocation from the CBN. Whether they get the forex from CBN or not, they have obligation to report. If for instance in my domiciliary account, I have never seen $1 million before and today I put $20 million, the bank has responsibility to file suspicious transactions report. That they didn’t get it from the CBN is not a justification for them not to file such report, you understand. BDCs have a responsibility to file transactions returns. So in a case where the BDCs do not file a return or file what it should file, then such operator is breaking a law. And when he is breaking a law at the slightest provocation, if he is caught up with, he is out of business. So the fact that CBN is not providing forex for them is not the reason why they shouldn’t file what they should file because CBN regulates their operations and when you are a regulator, you take your decision based on what is happening in the market and the fact that you didn’t buy from them is not the reason why you should stop filing returns. If I come to a BDC now and I am a business man and I say I have $500,000 to sell to you, the person should be able to file transactions reports to Special Control Unit against Money Laundering (SCUML). The BDC is supposed to report to their reporting line, be it SCUML or CBN or even financial intelligence unit so that they identify who this person is, and if need be, investigation can commence .If it is a legal business without crime, nobody disturbs him, if crime has been committed then he will face the penalties.

    What form is the investigation supposed to take?

    It’s the responsibility of the law enforcement agency to carry out the investigation. One if I file a suspicious transactions report, if for instance a bank files suspicious transaction report to NFIU, the body will do an analysis. Based on the analysis, it will either send information to the appropriate law enforcement agency or agencies or not. The agencies now have a responsibility to carry out investigations and investigations can take any form. If someone works in a bank and his salary is N10 but today he pays in $500 million into his account, the responsibility of the financial institution is to file a report. We saw this transaction and think it is unusual, they have finished their responsibility. The NFIU will look at it and analyse it what is this money for, this money came into his account as a transfer for a workshop that is about to happen, why wasn’t it transferred to the official account of the organisation? After they do their analysis, they send the report to EFCC or special fraud unit of the Police or straight to Independent Corrupt Practices and other Related Offences Commission (ICPC), those people will carry out their investigation. If need be, they might invite you, if no need, they would do their investigation without inviting you. If you are cleared, they let you go, if you are not cleared, they call you to come and explain. If the explanation is not justifiable and crime has been committed, you pay for it and this is what the process is and it saves virtually the society.

    Does it apply in both public and private companies?

    It applies to everybody. It doesn’t matter today if you paid unusual account or paid into Abuja, they should report it. They are not saying the person has committed a crime, that is why its called suspicious transactions. Sometimes, it could be currency transactions, it could just be volume of currency, it might not be suspicious. It might be regular, maybe you just saw everyday from my account, N1 million is paid into a particular person everyday. It might just be this is unusual, the frequency is worrisome, somebody needs to file a report and this is the simple process. That is why we encourage that the financial system keeps their safeguards. All the non designated financial businesses and professions keep their safeguards. Even if you are an estate agent and somebody is coming to buy 600 houses or buy an estate and you know that this guy works as a civil servant, you have a responsibility to report.

    How would you assess the Nigerian situation, where there are visible allegations of money laundering activities and proliferation of small arms?

    Well, let me not say I want to assess Nigeria’s situation because I would require some parameters to do a thorough assessment. However, Nigeria as a strong country is a strong member of GIABA, and of course strong member of ECOWAS. And like other strong countries and as members of ECOWAS, of course it is our responsibility to protect the economy of Nigeria from the proceeds of crime, ensuring that terrorists financing do not take place by ensuring that Nigeria as a country does comply with the 40 recommendations of the FATF and put up systems to ensure the implementation of those recommendations to the letter. Those recommendations are to guide and ensure that crimes that we are working against do not get perpetuated in Nigeria. However, Nigeria is one of the countries in recent times that have shown commitments to complying with those recommendations in terms of enacting the laws. Let me say clearly that in a lawless society, it is criminal to be law abiding. When there is no law, you have set the stage for failure, so by Nigeria’s position to enact the laws against money laundering, terrorists financing, proliferation of arms, against all the required issues that have been laid out is the first step to ensuring you have put in place measures to stop that. Secondly, the measurement of effectiveness of those laws can’t be done in isolation. So, I would say Nigeria is working hard to comply with those recommendations. They have taken appropriate measures in enacting the laws and the stage we are now is measuring the effectiveness of those laws and GIABA will be embarking on second round of mutual evaluation of member states. Nigeria is in category of those that would be done.

    Basically, what is GIABA about?

    It is Inter-Governmental Action Group against Money Laundering in West Africa (GIABA). It is an ECOWAS institution, established in 2000 by the authority of Heads-of-States and governments of Economic Community of West Africa States (ECOWAS). It’s a specialised institution, and the Financial Action Task Force (FATF) regional body. The FATF is the global body responsible for building standards and recommendations to fight money laundering, terrorists financing and proliferation of small, light and weapons of mass destruction. Within the confines of this work, GIABA has a mandate to protect the economy and financial institutions of West African states from the laundering of the proceeds of crime and so work with the FATF recommendations to ensure that terrorists financing is not happening within the region and by extension across the world. That is the core mandate and responsibility of GIABA.

    How does it feel knowing that money laundering, proliferation of small arms, terrorists financing and all those things you are supposed to be fighting against still thrive in our societies?

    There is no society without crime yet. We do hope and look up to one day probably there would be but obviously there is none. With all the sophistication in the US, with all the sophistication in Europe, with all the sophistication across the world, you will see the activities of criminals. The efforts that we put in place are to build the system whereby we mitigate, reduce to the barest minimum these crimes. Today, we make a lot of discoveries, which have made it easier for us to know when a crime is committed. So, sometimes the things we see as increase in crime are actually discoveries of crimes. If for instance they say in one country in Africa or West Africa, somebody is being prosecuted for $20 billion or $1 billion, it is because this information is known, that is why the awareness is taking place. If it is not known, it will be as if there is no crime being committed. What we see now is more discoveries of those crimes, more pursuits to stop them or more prosecution of those who commit these crimes and that are what people usually term to be increase in crime. We see them as more detection of crimes and the more you detect, the more you punish, the more you prosecute, the more deterrent there are and the less crime that people are carrying out. You are dissuading them from committing a crime; when you discover, you detect, you investigate, you prosecute, and sanctions are appropriately carried out to those guilty and those sanctions, I must say, must be dissuasive, proportionate and adequate. When this is done, then, you will have dissuasion. People will not have the incentives to carry out the criminal activities anymore.

    Are there specific challenges you are tackling in Nigeria now?

    Of course everywhere you see issues of criminality, there are challenges. Not only in Nigeria but eventually in most African countries, corruption is high, trafficking is high, drug related offences are also high. We are trying to work with all relevant agencies, for instance, GIABA provided technical assistance to Economic and Financial Crimes Commission in Nigeria, and this is part of things to strengthen their capabilities to be able to carry out their duties and also encourage the leadership to provide the political will.

    What is your view on looters returning stolen money and being left to go; is it the right way to fight corruption?

    Well I am not aware of any official document saying some people pleaded and returned funds and if it does exist, I am not aware. What I have seen so far is that there have been arrests ,there are other issues, allegations and as I have said earlier, allegations are just allegations until proven by a competent court of jurisdiction and one is convicted of a crime. If you asked me to return one naira and I returned one naira, there is no court of law that have said I committed a crime; so it is probable discussions and negotiations between private people or public people. What I would say would be of interest is effective prosecution and securing conviction based on the court judgments, then we can now say fine this is a case established by a competent court of law of corruption on money laundering issues and what we see today around is still the process, there are allegations, there are investigations going on, until we see prosecution and conviction, we cannot say crime has been committed. So if people are having any form of discussion by the side, all of those things cannot go as conviction until we secure conviction in the courts. I think many of those cases are being filed in the courts and we are looking forward to see those cases probably prosecuted and if convictions are secured, we will know crime has been committed and appropriate sanction meted out.

    What is responsible for the ongoing increased activities by the EFCC in fighting corruption?

    Well, I won’t say EFCC is either being active or not active. What I use as a yardstick is the amount of conviction secured. GIABA, as I have said earlier, has provided technical assistance to many anti-corruption agencies in the region and part of that is to ensure that there is more conviction. From the report I have received from the EFCC even in the past, there is large amount of conviction. It might not be purely politically exposed persons but conviction has been going on. What we want to see is more conviction, what we want to see is if people have committed crimes, they should pay for their crimes. Now there are a lot of issues and noise because a lot of politically exposed persons are involved. Whether the EFCC has worked more or less should not be for us to pay attention to. What we want to see is that crimes have been committed and those crimes have been paid for which would be a deterrent to those who want to commit crime in the future. I would not say EFCC has been doing more or doing less than they used to. What I want to say is that convictions were being secured in the past, more convictions should be secured if there are more crimes committed. So we must measure first if in the past, where there are crimes committed, were these crimes investigated, was prosecution process instituted and conviction secured? When we have all of those yardsticks, then we should be able to measure.

    If everything goes on and you did not report, the law will catch up with you. So, these are the processes that have been put in place and that are part of the things that GIABA is ensuring that each member state has all of these processes in place. Until those processes are in place and well known and understood, then we will be able to mitigate and fight this crime originally because people now launder money via properties, via luxury cars, they buy all sorts of things. You see somebody has 20 houses, even if nobody is living there; they just lock them because they just want to launder the money. If you go to many cities within the region, you will see that many people have big houses within the high brow areas that are not occupied. If the estate agents are doing their work, when people are procuring, if lawyers are doing their work when people are signing agreements, all of those things supposed to come as suspicious transactions. If they file their reports properly and the agencies do their analysis properly, you will find out that some of these things would be discovered.

    Recently, I heard in the news that there is a civil servant whose account has almost N200 million, whose salary is less than 0.01 per cent of that amount. So the financial institutions have responsibility, they are well taught on what these responsibilities are. They understood it and I expect that they are doing their corporate reporting. If they are not, they would pay dearly for it. Sanctions are going on across the world. It is even increasing. PNB Paribas in the U.S paid in billions of dollars in sanctions; HSBC was sanctioned to the tune of $1.9 billion. Any bank that fails to comply, the sanction can kill such a bank.