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Tag: Money laundering

  • UPDATED: Uncertainty over Senator’s presence stalls money laundering trial

    Uncertainty over whether who represents Delta North, would be present stalled his trial at the Federal High Court in Lagos for alleged money laundering yesterday.

    Prosecuting counsel Mr O.D. Ogunsanya (SAN) said the Senator earlier indicated that he would not be available.

    He said he was surprised to see him in court.

    The SAN said due to the earlier notice of absence from the defendant, he had told his witness not to bother coming to court.

    The development stalled the trial, forcing the judge to adjourn.

    The Economic and Financial Crimes Commission (EFCC) re-arraigned Nwaoboshi last October 5 before Justice Chukwujekwu Aneke.

    It followed the elevation of the previous judge handling the case, Justice Mohammed Idris, to the Court of Appeal.

    EFCC re-arraigned him along with Golden Touch Construction Projects Limited and Suiming Electricals for alleged N322million fraud.

    Two witnesses, Prince Kpokpogiri and Murtala Abubakar, had testified before Justice Idris before whom Nwaoboshi was arraigned last April 25.

    The prosecution alleged that Nwaoboshi and Golden Touch Construction Projects purchased a 12-storey property known as Guinea House on Marine Road in Apapa, Lagos for N805million between May and June 2014.

    The anti-graft agency claimed that N322million out of the N805million was part of proceeds of “an unlawful act, to wit: fraud.”

    The EFCC alleged that the N322million was transferred to the property’s vendor on the order of Suiming Electricals, which was accused of aiding Nwaoboshi and Golden Touch Construction Projects to commit money laundering on or about May 14, 2014.

    According to EFCC, Nwaoboshi, a former Delta State Peoples Democratic Party (PDP) chairman, got a contract through Bilderberg Enterprises Ltd to supply new construction equipment to the state Direct Labour Agency at N1,580,000,000.

    The company allegedly imported and supplied used construction equipment rather than brand new ones despite receiving full payment.

    EFCC said Nwaoboshi, with the proceeds, bought the 12-floor building from Delta State Government at N805million in the name of Golden Touch Construction Projects.

    The commission said the Senator had “no visible legitimate business venture to generate the amount spent to purchase the said property.”

    The alleged offence contravenes sections 15(2)(d) and 18(a) of the Money Laundering (Prohibition) Act 2011 and punishable under Section 15(3).

    Justice Aneke adjourned until May 28 and 30 for continuation of trial.

     

  • Senator’s absence stalls money laundering trial

    The absence of Senator Peter Nwaoboshi, who represents Delta North, Monday, stalled his trial at the Federal High Court in Lagos for alleged money laundering.

    The Economic and Financial Crimes Commission (EFCC) re-arraigned him last October 5 before Justice Chukwujekwu Aneke.

    It followed the elevation of the previous judge handling the case, Justice Mohammed Idris, to the Court of Appeal.

    EFCC re-arraigned him along with Golden Touch Construction Projects Limited and Suiming Electricals for alleged N322million fraud.

    Two witnesses, Prince Kpokpogiri and Murtala Abubakar, had testified before Justice Idris before whom Nwaoboshi was arraigned last April 25.

    Trial could not go on Monday as the prosecution said it was informed that the defendant would not be available.

    The prosecution alleged that Nwaoboshi and Golden Touch Construction Projects purchased a 12-storey property known as Guinea House on Marine Road in Apapa, Lagos for N805million between May and June 2014.

    The anti-graft agency claimed that N322million out of the N805million was part of proceeds of “an unlawful act, to wit: fraud.”

    The EFCC alleged that the N322million was transferred to the property’s vendor on the order of Suiming Electricals, which was accused of aiding Nwaoboshi and Golden Touch Construction Projects to commit money laundering on or about May 14, 2014.

    According to EFCC, Nwaoboshi, a former Delta State People’s Democratic Party (PDP) chairman, got a contract through Bilderberg Enterprises Ltd to supply new construction equipment to the state Direct Labour Agency at N1,580,000,000.

    The company allegedly imported and supplied used construction equipment rather than brand new ones despite receiving full payment.

    EFCC said Nwaoboshi, with the proceeds, bought the 12-floor building from Delta State Government at N805million in the name of Golden Touch Construction Projects.

    The commission said the Senator had “no visible legitimate business venture to generate the amount spent to purchase the said property.”

    The alleged offence contravenes sections 15(2)(d) and 18(a) of the Money Laundering (Prohibition) Act 2011 and punishable under Section 15(3).

    Justice Aneke adjourned until May 28 and 30 for continuation of trial.

  • Money laundering: Akwa Ibom commissioners absent despite bench warrant

    Two Akwa Ibom State commissioners, against whom the Federal High Court in Lagos issued a bench warrant, did not appear in court yesterday.

    The court, on March 1, ordered the arrest of Commissioner for Finance Nsikan Nkan and Attorney-General and Commissioner for Justice Uwemedimo Nwoko.

    Justice Rilwan Aikawa also ordered the arrest of the Accountant-General, Mfon Udomah, and an account officer Margaret Thompson Ukpe.

    Their arrest followed an application by the Economic and Financial Crimes Commission (EFCC), which said they were “at large”.

    They were charged with Nigeria Bar Association (NBA) president Paul Usoro (SAN) for allegedly laundering N1.4 billion state funds.

    But the commissioners, through their lawyer Chief Mike Ozekhome (SAN), are urging the court to set aside the arrest warrant.

    Another application was brought by Governor Udom Emmanuel’s lawyer challenging the court’s jurisdiction to entertain the charge.

    Yesterday, Ozekhome said he needed time to respond to EFCC’s motion against his application, which he said he received on April 15.

    He contended that he needed time to respond to even more grievous allegations made by the prosecution against his clients.

    Udom’s laweyr, Dr. Charles Mekwunye, noted that he filed his client’s application challenging the court’s jurisdiction on March 3, but received EFCC’s reply on April 15.

    He said he was still putting his response to EFCC counter-affidavit together.

    Usoro’s lawyer, Chief Wole Olanipekun (SAN), said he filed an April 3 motion seeking the release of Usoro’s international passport to enable him travel abroad for foreign engagements.

    Prosecuting counsel Rotimi Oyedepo did not oppose the application based on Olanipekun’s promise that the trial dates would remain sacrosanct, and that where there is a clash with Usoro’s itinerary, the trial would take precedent.

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    He, however, urged the court to mandate the defendant to notify EFCC’s Acting Chairman, Ibrahim Magu, anytime he wants to travel.

    Justice Rilwan Aikawa granted the application, but directed the defendant to always inform Magu.

    Justice Aikawa is the third judge to handle the case.

    Usoro was first arraigned before Justice Muslim Hassan on a 10-count charge, but after Usoro asked him to recuse himself, the case was re-assigned to Justice Chuka Obiozor.

    On the day Usoro was to be re-arraigned, Justice Obiozor recused himself for “personal reasons”. The case was eventually re-assigned to Justice Aikawa.

    EFCC alleged that Usoro conspired with others to commit the offence within the court’s jurisdiction on May 14, 2016. He allegedly conspired to convert N1.4 billion, property of Akwa Ibom State government, money they reasonably ought to have known formed part of the proceeds of an unlawful activity.

    The prosecution said the unlawful activity included criminal breach of trust, which contravened Sections 15 (2), 15(3), and 18 (A) of the Money Laundering (Prohibition) Act, 2011.

    Usoro pleaded not guilty and Justice Aikawa allowed him to continue on the N250 million-plus-surety bail granted him by Justice Hassan.

    Justice Aikawa adjourned until May 10 for hearing of pending applications.

  • Appeal Court affirms conviction of Congolese for money laundering

    The Court of Appeal in Lagos yesterday affirmed the conviction of a Congolese, Kutumisana Blaise, and the forfeiture of $551,225 to the Federal Government.

    In a unanimous judgment, three justices of the appellate court – Mohammed Garba, Tom Yakubu and Jamilu Tukur – upheld the July 7, 2015 verdict of Justice Ibrahim Buba of the Federal High Court, Lagos.

    The appellate court further concurred with the decision of the lower court over the forfeiture of the money, saying the said amount was properly forfeited to the Federal Government.

    On why the judgment of the lower court was affirmed, Justice Yakubu, who read the lead judgment, said: “I have myself perused the pieces of evidence proffered by the witnesses at the court below vis-a-vis the findings made by the learned trial judge, which ultimately culminated in the conviction of the appellant (Blaise).

    “I am satisfied that those findings are clearly borne out of the evidence placed before his lordship. The findings are, to my mind, unassailable. I have no reason whatsoever to tamper or interfere with them. I affirm them accordingly. In the end, I resolve the sole issue in this appeal against the appellant.”

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    The Economic and Financial Crimes Commission (EFCC), had arraigned the convict on April 21, 2015 before Justice Buba.

    EFCC counsel Abba Muhammed urged Justice Buba to convict Mr Blaise, following his failure to declare the said $551,225 in his possession to the men of the Nigeria Customs Service (NCS) at the point of entry into Nigeria.

    According to Mr Abba, Blaise’s action is contrary to Section 2 (3) of the Money Laundering (Prohibition) Act, 2011 (as amended by Act No 1 of 2012.

    In his judgement on July 7, 2015, Justice Buba upheld the argument of the EFCC’s lawyer and sentenced Mr Blaise accordingly.

    The judge further directed that the said $551,225, which Mr Blaise failed to declare, be forfeited to the Federal Government.

    Dissatisfied with the verdict of Justice Buba, the convict approached the Court of Appeal, Lagos, for intervention, asking the appellate court to set aside the judgment of the lower court.

     

  • Nigeria no longer high risk for money laundering, says NFIU

    NIGERIA has scored a major point in its anti-money laundering battle.

    The country has been withdrawn by the Council of Europe from the list of High-Risk Third Country with deficiencies in money laundering and terrorism financing controls, according to the Nigerian Financial Intelligence Unit (NFIU).

    The agnecy will begin full operations in April.

    Besides, the unit will soon release new reporting requirements on suspicious transactions for terrorism-prone areas.

    The NFIU, which made these disclosures yesterday in a statement by its Acting Chief Media Analyst, Mr. Ahmed Dikko, said it would soon complete the beneficial ownership database for politically-exposed persons.

    President Muhammadu Buhari,  on July 11, 2018, signed the NFIU Bill into law in line with the requirements of Recommendation 29 of the Financial Action Task Force Standards and Article 14 of the United Nations Convention Against Corruption.

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    The new Act has separated the NFIU from the Economic and Financial Crimes Commission (EFCC).

    Barely eight months after the presidential assent, the NFIU is set to issue guidelines that will affect cash transactions by local, state and federal governments as well as bureau de change.

    The statement said: “The NFIU, through this statement, is informing its local reporting entities, international partners, counterpart financial intelligence units (FIUs), relevant competent authorities and the general public that the unit, created by the Federal Government recently, is now fully repositioned to commence full operations from April 1, 2019.

    “The main focus of the NFIU will be to fight all crimes through money laundering, terrorism financing and proliferation of weapons real time analyses in the entire country.”

    The statement added: “We are also using this medium to respond to enquiries about the current position of the EU’s recent listing of Nigeria as High Risk Third Country with deficiencies in money laundering and terrorism financing controls.

    “The listing was officially withdrawn by the Council of Europe on 5th March 2019 while giving room for the European Commission and the European Parliament to align their positions. The Nigeria government engaged the E.U authorities through the Ministry of Foreign Affairs and the NFIU to reach an understanding.”

    The new agency unfolded its plans, including new reporting requirements on suspicious transactions for terrorism-prone areas

    It said: “Significant measures to be implemented by the NFIU in the near future will include full implementation of the national sanctions regime to all detected areas of vulnerabilities within our systems. Other areas include issuing guidelines, advisories etc. that will affect cash transactions processes of local, state, federal governments and bureau de change etc.

    “The unit will also release new reporting requirements on suspicious transactions for terrorism-prone areas and on suspects taken into custody in violent and flashpoint communities to check vices of terrorism, proliferation of small arms, kidnapping, ethnic violence, cattle rustlings etc. with the view to providing credible intelligence for law enforcement and national security.

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    “Finally, efforts of the Federal Government to set up the beneficial ownership data base for politically exposed persons and public servants will be completed and expanded to capture additional necessary areas.

    “The new process, which includes new approach to analysing compliance in public account expenditures, will almost shut down corruption from the way we used to know and new transparency methods will come to governance.

    “We request all entities and individuals to cooperate with the new processes when they start unfolding because the measures are necessary to move the country forward.”

  • Money laundering: EU nations reject proposal to blacklist Nigeria, 22 others

    BRUSSELS–European Union member states have unanimously turned down a proposal by the EU executive Commission to blacklist Nigeria and 22 other countries described as posing a high risk of money laundering or terrorist financing.

    The EU member countries dismissed the blacklist recommendation as “not established in a transparent and resilient process.”

    Also on the discarded list are Saudi Arabia, North Korea and four U.S. overseas territories, which drew the ire of the U.S. government.

    The list is used to increase checks and investigations on financial transactions from those countries and territories to find suspicious money flows.

    The EU Commission will now have to set up a new list and take the concerns of the member states into consideration.

  • EU adds Nigeria, Saudi to dirty-money blacklist

    Nigeria, Saudi Arabia and Panama are among the countries added by the European Commission to blacklisted nations for posing threats because of lax controls on terrorism financing and money laundering.

    The listing of the countries is part of a crackdown against money laundering after several scandals hit banks in European Union (EU) in recent months.

    But the development has triggered criticism from several EU states. They are worried about their economic relations with the listed states, notably, Saudi Arabia.

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    The criteria used to blacklist countries include low sanctions against money laundering and terrorism financing, insufficient cooperation with the EU on the matter and lack of transparency over the beneficial owners of companies and trusts.

    Five of the listed countries are already included on a separate EU blacklist of tax havens. They are: Samoa, Trinidad and Tobago and the three United States (U.S.) territories of American Samoa, Guam and U.S. Virgin Islands.

  • EFCC accuses 10 banks of money laundering

    The acting Chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, yesterday, accused 10 unnamed commercial banks of money laundering.

    He also condemned the increasing wave of illicit financial flows and vote buying in the country during elections.

    Speaking in Lagos during a round table meeting with Managing Directors (MDs) of financial institutions, the EFCC boss said: “It is worrisome to note that in 2018, statistics available to the EFCC shows that out of about 28 commercial banks in Nigeria, 10 banks evacuated out of Nigeria through Travelex Nigeria Limited, the sums of GBP £50,832,560; USD $8,057,756; EURO #39,986,560 and RAND-7,500,000.

    “The reasons for these evacuations are still sketchy. We must note that the impact of illicit financials flows from the country undermine the stability and integrity of the financial institutions.”

    The EFCC boss expressed concern, that, the culture of large cash transactions was still being allowed in some banks, adding that there was no commensurate reporting of those transactions to the relevant agencies.

    According to him, the banks still operate accounts without Bank Verification Numbers (BVNs), and have remained complacent in reporting those accounts to the relevant authorities, or freezing them in accordance with CBN policy.

    “The banks are rather complacent in dealing with crypto-currency or bitcoins as the case may be and have not taken measures to monitor such transactions or put adequate surveillance on such accounts. The banks are observed to still hold customers accounts in their suspense accounts, making it difficult for law enforcement agencies to trace and have access to those funds,” he observed.

    According to him, intelligence reports have shown, that, banks are aiding their customers to receive foreign financial inflow to their accounts in neighbouring countries, where they have branches like Ghana, Republic of Niger and other West African countries.

    “The money is then couriered into Nigeria through the land borders to circumvent declaration and reporting,” he stated.

    He added that banks had the habit of under-reporting transactions in some cases while carrying out defensive filing of transactions after they had been consummated.

    Describing them as “gatekeepers”, Magu said no country could control illicit financial flows without the cooperation of financial institutions.

    He, therefore, charged the managing directors to join hands with the Commission to save the country from being hijacked by criminals.

    Magu, who spoke on the theme: “Roles and Obligations of Managing Directors of Banks in Nigeria in Curbing Vote Buying During an Election, Illicit Financial Flows and Other Related Matters in Nigeria,” recalled that the Governor of Central Bank of Nigeria (CBN), Godwin Emefiele, during a meeting with Bankers’ Committee, sometime in September 2018, made a commitment to work with the EFCC and the banks to curb this menace.

    He said illicit financial flows will reduce the amount of resources available to the government to provide critical social services to the citizenry.

    Speaking on vote buying during elections, Magu asserted that it would prevent credible candidates from running for political offices.

    He said: “in Nigeria, vote buying has reached an alarming proportion, to the extent that politicians have now spread their tentacles to election officials, security agencies, election observers and even the media.”

  • EFCC, ABCON take fight against money laundering to MM2

    The Economic and Financial Crimes Commission (EFCC) and the Association of Bureaux De Change Operators of Nigeria (ABCON) have taken the campaign against money laundering and terrorism financing to Bureaux de Change (BDC) operators at the Murtala Muhammed Airport 2 (MM2), Lagos.

    Speaking during the sensitisation programme against money laundering and terrorism financing campaign at MM2, which was attended by many BDC operators, EFCC Chairman, Ibrahim Magu, called for continuous sensitisation on issues around Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) reporting  to improve transparency in BDCs operations. He said the EFCC will 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.

    Independent sources alleged that the choice of MM2 was because the centre remains a major spot for illegal funds transfer and border cash evacuation in the country.

    Speaking at the event, ABCON President, Aminu Gwadabe, said the BDC sector is part of the financial system and is seen as the weakest link in the financil system. He appealed to the regulators to approve  the group’s request  for the establishment of the institute’s Training Centre  and building capacity of over 4,500 BDC operators for better understanding of the menace of money laundering and terrorism financing.

    Gwadabe, said the anti-money laundering sensitization programme  was intended to familiarize BDC operators 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.

    Gwadabe  said that the programme was also meant to help BDCs maintain minimum standard of record keeping and increasing level of investors confidence for the economy.

    He said the group will continue to pursue Nigeria’s admission into the Financial Action Task Force (FATF) due this year.

    The  FATF is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions.

    The FATF is therefore a “policy-making body” which works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas.

    Gwadabe said the sensitization of BDCs and other capacity building for BDCs will create awareness on the need to check money laundering and terrorist financing in this period of electioneering; ensure that BDCs are not used to launder funds by Politically Exposed Persons (PEPs). It will also upscale BDCs’ compliance with the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) for Banks and Other Financial Institutions in Nigeria Regulations, 2013.

    ABCON has for years been an active group in the financial services sector, concentrating more on the BDC segment of the market and ensuring that global best practices are followed in BDCs operations.

    The association has on its own, organised trainings for its members, and also partnered with Nigerian Financial Intelligence Unit (NFIU) and the EFCC to build capacity for operators. BDC operators have been trained 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 in Lagos was meant to familiarize 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.

    The EFCC/ABCON goal is to ensure that BDCs are not used to launder funds by Politically Exposed Persons (PEPs) especially at this period of electioneering.

     

  • Money Laundering: Zamfara SUBEB boss jailed 41 years

    The Chairman of Zamfara State Universal Basic Education Board (SUBEB), Murtala Adamu Jengebe has been sentenced to a 41-year jail term.

    This was disclosed in a tweet by the Economic and Financial Crimes Commission (EFCC) via its official twitter handle: @officialEFCC on Thursday.

    EFCC disclosed that a five-man panel of the Court of Appeal sitting in Sokoto and presided over by Justice Hannatu Sankey sentenced Jengebe to a cumulative jail term of 41 years.

    The tweets further reads: “Jengebe was convicted by the court after the appellate court found him guilty on the seven out of the 10 counts for which he was earlier acquitted at the Federal High Court, Gusau, Zamfara State.

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    “In the lead judgment of the Court read by Justice Habeeb Abiru, the earlier acquittal of the embattled Chairman by a Federal High Court in Gusau was set aside.

    “The appellate court held that the prosecution has proved beyond reasonable doubt seven out of the ten counts of the money laundering charge brought against him by the EFCC.

    “He was consequently sentenced to five years imprisonment on each of four of the counts and seven years each on three other counts respectively. However, the Court ordered that the sentences shall run concurrently.

    “It would be recalled that on the 12th day of May 2017, the Federal High Court sitting in Gusau presided over by Justice Z.B Abubakar discharged and acquitted the convict on the 10 counts charge of Money Laundering but convicted him for engaging in private business while he was still in public service. An offence he was never charged for by the Commission.

    “Dissatisfied with the judgement of the lower court, the prosecution approached the Court Of Appeal seeking it to set aside the judgement of the lower court.”