The Nation Newspaper

Tag: Money laundering

  • Money laundering: CBN may blacklist banks

    Money laundering: CBN may blacklist banks

    •’Domicilliary accounts not frozen’

    The Deputy Governor of the Central Bank of Nigeria in charge of Financial System Surveillance (FSS) , Mr. Okechukwu Joseph Nnanna, yesterday said the apex bank may blacklist banks used for money laundering.

    He also said management and directors of such banks will be in trouble.

    The CBN deputy governor said he could not say exactly how much of looted funds had been recovered and deposited in CBN.

    Nnanna, who spoke with reporters in Abuja on the sideline of a workshop organised by the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA), said it would no longer be business as usual.

    He said: “Any bank which we discover has been used, or manipulated by criminals who launder money, corrupt politicians who launder money, that bank and directors would be held accountable.

    “Not only paying fines, we can also ask them to be blacklisted and will never work in the financial system any more. That is a very severe punishment.

    “People who finance terrorists come in different guises; they may be genuine businessmen who after a while may turn to be criminals but what is important is for the banks to make sure that the customer who comes to deposit money and withdraw money, they must know who he is. Not only knowing who he is, they must know his or her business.”

    Asked what CBN is doing to check money laundering, the Deputy Governor said the apex bank has put in place many control mechanisms.

    He added: “At the CBN, we are doing a great deal. The bank has in fact put in place a regime of controls particularly for commercial banks. Know Your Customers (KYC) is a very serious affair with us.

    “ You don’t go to the bank and open an account and go and lodge in N5 million, N10 million without you being reported to the NFIU and to the EFCC. You will be reported to explain the source of that money.

    “We are not saying that Nigerians are all criminals. If you are a genuine businessman and you lodge in N1 billion there is nothing wrong with that but if you have N5000 and all of a sudden, you brought N10 million, we would like to know.

    “The CBN in collaboration with the National Financial Intelligence Unit (NFIU) would like to know the source of that money and that we are doing very religiously.”

    Responding to a question on what the government has lost to money laundering, he said: “Nigeria as a government hasn’t lost money so to say. But it is actually the businessmen and particularly foreigners through 419 scams, and the amount is really indeterminate.

    “If I give you a number, I think that would be very misleading; I think NFIU would be in a position to give you such number.”

    On the looted funds in CBN, the Deputy Governor was not forthcoming on the actual amount.

    He said: “The president said so, and I am not qualified to contradict him. I wasn’t told that amount of money. If I tell you the figure, I would be lying. The Central Bank of Nigeria is the banker to the government so if the government recovers such money, where will it go? It will go to the CBN.

    “You are the one saying it is there but I am not disputing that. What I am saying is that the Central Bank of Nigeria is the banker to the government. We keep dropping money, all money.”

    Nnanna denied that the CBN deliberately frozen domiciliary accounts of innocent Nigerians.

    He added: “We didn’t freeze them, they were not frozen. And let me use this opportunity to explain what domiciliary account is all about. Domiciliary account does not mean Nigerians in Nigeria, living in Nigeria using the Naira to buy dollars from the Bureau de Change operators or black market and substituting the Naira for dollars or pound sterling. That is not domiciliary account.

    “Domiciliary account is when we live  in foreign countries, like in the US, in the UK, South Africa,  and you are working there, and you wan part of your money deposited in your country, then it would be through wire transfer.

    “I took time to go to our banks during the height of domiciliary accounts. I found out that the queue for people who were depositing dollars and pound sterling was three times longer than the queue who were depositing Naira. What type of economy is that? That is not domiciliary accounts, that is called currency substitution which no country should tolerate; that is why we stopped it.

    “The people who have their money in their accounts, it is still their money; the CBN did not seize it; it is still their money; you can go and withdraw it but you cannot deposit it anywhere.

    If your bank says they don’t have the dollars, then you should ask them, what happened to the dollars you gave them. So we never told them not to pay back their customers.”

     

  • Court to rule on Nyako’s N15b money laundering charges

    Court to rule on Nyako’s N15b money laundering charges

    A Federal High Court, Abuja, has fixed December 14 for ruling on whether or not to admit a bank statement allegedly indicting former Adamawa State Governor Murtala Nyako of diverting funds belonging to the state.

    The Economic and Financial Crimes Commission (EFCC) is prosecuting the former governor and three others on a 37-count of corruption and laundering N15 billion belonging to the state.

    The defendants pleaded not guilty to the charges.

    Justice Evoh Chukwu fixed the date after the defence and the prosecution argued on the admissibility of the document.

    Prosecution counsel Mr Rotimi Jacobs (SAN) sought to tender the documents, which were allegedly used to launder N15 billion to the accounts of some private companies.

    The companies, according to Jacobs, are: Blue Opal Nigeria Limited, Crust Energy Nigeria Limited, Blue Ribbon Multilinks Limited, Tower Assets Management Limited and Blue Ribbon Bureau De Change.

    The lawyer sought to tender the document through a witness, Mr Mahmud Wambai, manager of a Mubi branch of the Zenith Bank Plc.

    But Nyako’s lawyer, Mr Yakubu Mekyau (SAN), objected to the admissibility of the document.

    Mekyau argued that the prosecution must comply with Section 84(4) of the Evidence Act 2011.

    He said Wambai was not the maker of the document and could not tender or give evidence on the document.

    Mekyau averred that when the alleged transaction took place, the witness was not a manager in the bank.

    He urged the court to reject the document, adding that same could not be tendered as evidence by the witness.

     

     

     

     

  • Alleged N3.1b money laundering: Suswam, ex-commissioner arraigned

    Alleged N3.1b money laundering: Suswam, ex-commissioner arraigned

    Former Benue State Governor Gabriel Suswam and a Finance Commissioner in his administration, Omodachi Okolobia, were arraigned yesterday before a Federal High Court in Abuja for alleged money laundering and breach of trust.

    The two, accused of laundering about N3.1 billion belonging to Benue State, were arraigned before Justice Ahmed Ramat Mohammed on a nine-count charge filed by the Economic and Financial Crimes Commission (EFCC).

    They pleaded not guilty and were granted bail for N100 million and one surety each.

    Their lawyer, Ahmed Raji (SAN), applied for their bails, following their pleas.

    Raji prayed the court to grant them bails on self-recognition.

    But prosecution lawyer, Rotimi Jacobs (SAN), who did not oppose the bail application, insisted that the conditions be attached to the bails.

    Justice Mohammed granted the accused bail at N100 million with one surety each.

    The judge added that each surety must be an employee of an agency or establishment of the state or federal government and must not be below Grade Level 12.

    The judge averred that in the absence of civil servants, the defendants could produce Nigerians who had been conferred with national honours.

    But he added that the sureties must swear to affidavits of means while the accused were to deposit their passports with the court’s Registrar.

    Suswam and Okolobia were alleged to have, between August 8 and October 30, 2014, in Abuja, used a company, Elixir Securities Limited, to divert about N3,111,008,018.51, the proceeds from the sale of the shares of Benue State government and the state’s Investment and Property Company Limited.

    They were also accused of diverting the money, which formed part of N9,411,708,009.51 realised from the sale of the shares of the state, thereby committing an offence contrary to Section 15(2)(b) of the Money Laundering (Prohibition) Act, 2011, as amended in 2012, and punishable under Section 15(3) of the same Act.

     

  • Money-laundering: Court orders re-opening of frozen account by NDLEA

    Money-laundering: Court orders re-opening of frozen account by NDLEA

    Justice Mohammed Yunusa of the Federal High Court Lagos has ordered the re-opening of a bank account containing fifty eight million, five hundred thousand naira (N58, 500,000) suspected to be proceeds of drugs frozen by the National Drug Law Enforcement Agency (NDLEA).

    The account was frozen with the consent of the Attorney General through the Solicitor General in accordance with the NDLEA Act.

    In his ruling on a fundamental right application against the NDLEA, Justice Yunusa ordered the re-opening of the account on the ground that there was no Attorney General at the moment.

    But the Chairman/Chief Executive of the anti-narcotic Agency, Ahmadu Giade described the ruling as unacceptable and promised to appeal it.

    Giade said: “The true position is that narcotic investigations are incomplete until criminal wealth is traced and confiscated”.

    The NDLEA boss added that the support of the judiciary and other stakeholders remain vital to successful anti-money laundering campaign.

    The suspected drug baron, Chukwunwendu Ikejiakwu aka Blessed of Ozubulu, Ekwusigo Local Government Area of Anambra State was charged to court by NDLEA on a 13- count charges involving manufacturing and production of methamphetamine as well as exportation of narcotic drugs, forming and operating a drug trafficking organisation among others.

    The agency freezed the account after securing interim forfeiture on his traced assets.

    It was gathered that while still in prison custody, Chukwunwendu arranged with his wife, Mrs. Ikejiakwu Christiana, to open an account in the name of the wife’s younger sister, Ifeoma Odili.

    Three days after the account was opened, the sister applied to the bank to make the suspect’s a signatory to the account.

    It was learnt that NDLEA got wind of the move and promptly freezed the account with the consent of the Attorney General through the Solicitor General.

  • Fed Govt cautions insurance brokers on corruption, money laundering

    Fed Govt cautions insurance brokers on corruption, money laundering

    The Federal Government has urged the new leadership of the Nigerian Council of Registered Insurance Brokers (NCRIB) to ensure that their insurance broking function is not exploited as a vehicle for corruption and money laundering.

    Commissioner for Insurance, National Insurance Commission (NAICOM), Mohammed Kari represented by the Deputy Commissioner for Insurance, Finance and Administration, George Onekhena who spoke during the inauguration of Kayode Okunoren as the 18th President of the NCRIB, said insurance broking profession holds the potential of facilitating economic growth.

    He urged the new president to put in place necessary logistics that will ensure that brokers comply with all the laws of the land.

    He stated that as professionals, brokers should take equitable interest in discharging their duties in the interest of all the stakeholders.

    He enjoined brokers to recognise their role in insurance penetration especially as it includes the development of financial inclusion.

    “They should recognise their role as employers of labour and to improve their quota to the resolution of the economic problem that is affecting this nation today,” he said.

    He told the new president that his position is critical to enthroning the change mantra in the sector, noting that he has a role for the future in maintaining the code of ethics and compliance with relevant laws and regulation guiding the insurance industry.

    He assured brokers of cooperation as regulator in facilitating their growth and development.

    In his inaugural speech, Okunoren said his tenure will be  ‘A regime of consolidation and progress.’

    He stated that NCRIB will collaborate with the government on risk management.

    He said: “In view of the pivotal place and role of government in growing the industry and providing social benefits to the people, the NCRIB in the course of this regime will collaborate with government, particularly in availing it with its repertoire of knowledge in risk management, to support relief and operational efforts in the event of losses occasioned by fire and other hazards.

    “We intend that the collaboration would be a win-win situation whereby government would be able to latch on the expertise of brokers in taking proactive steps against disasters when they occur.

    “It is my strong belief that government could transfer the burden of compensation to victims of disasters if insurance is given its due place. This effort will free resources for other progressive ventures and aid the prudential fiscal thrust of government.”

    Speaking on professionalism, he said the first consideration for him would be the advancement of professionalism in the insurance broking profession.

    “As the professional arm of the industry, brokers cannot afford to fail. We shall view and promote professionalism in its holistic form. “While reckoning with the fact that paper qualification is the first step towards professionalism, more attention will be paid to issues such as ethical adherence, image, comportment, business relationship amongst operators and continuous education to buoy up the competencies of brokers.

    “In fact, we shall promote a blend of learning and interpersonal relationships. Whilst individual brokers will continually be attuned to their professional responsibilities, the regime will also concern itself significantly with how brokers are perceived by the clients or the public. It may be noted that the horizon of brokers today has been significantly affected by the image clients conjure about the practitioners.

    “Suffice to state that the wrong and degrading perception of brokers has been responsible for the wrong treatment usually meted to them in bidding for business, unlike other professionals. This must stop. In order to restore or promote the integrity of our practice, this regime will strengthen internal disciplinary process to ensure that members adhere strictly to ethics and integrity in all their professional undertakings,” he said.

    Okunoren said in view of the changing operational environment that has continued to affect the broking practice, his administration will be proactive in relating with relevant regulatory and government institutions whose activities impact on members.

    He added that relationship with NAICOM will be strengthened with initiation of regular interactive platforms to discuss issues affecting brokers, rather than being reactive in their approach.

  • Diezani not in court

    Diezani not in court

    Former Minister of Petroleum under the Goodluck Jonathan’s administration, Mrs. Diezani Alison-Madueke, was on Monday expected at Westminster Magistrates Court 10, in the United Kingdom.

    The embattled former minister was not spotted at the court premises with her mother, Beatrice Agama as largely reported on social media.

    However, an application for detention of cash seized under the Proceeds of Crime Act was made versus Diezani who was arrested last Friday in UK by Serious Organised Crime Agency (SOCA) for alleged bribery and corruption-related charges.

  • Diezani: Three more ex-ministers risk arrest for graft, money laundering

    Diezani: Three more ex-ministers risk arrest for graft, money laundering

    •Disquiet in Jonathan’s camp
    •How Diezani’s collaborator surrendered to UK agency
    •Her business partners go underground

    Three more ministers of the Goodluck Jonathan era are facing possible arrest in the aftermath of Friday’s detention of ex- Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, in London for alleged corruption.

    Although Alison-Madueke and the four other suspects arrested along with her were granted bail same day, tension has already gripped the  Jonathan camp following what sources described as   threat by the once powerful ex-minister   to open up on certain deals which she was directed to execute.

    She is said to be good at keeping records, including handwritten notes.

    A source in one of the anti-graft agencies said last night that Mrs. Alison-Madueke is  “just  one of the few cases of ex-ministers under investigation.”

    “We have at least about three issues at hand but I will not disclose their names,” the source said, adding, “do not forget that these three cases are outside the matter of ex-Minister Stella Oduah which is stuck in court. We have made our position known on this.

    “The depletion of the $1billion in Sovereign Wealth Fund by about $700million is one of the priority cases with anti-graft agencies. There are also the issues of reckless granting of tax waivers to oil firms.”

    The ex-ministers are believed to have been implicated by Permanent Secretaries.

    They are likely to be quizzed in connection with alleged reckless granting of waivers, depletion of the Sovereign Wealth Fund by $700m without the knowledge of the National Economic Council, and “questionable contracts.”

    The camp of the former president was in disarray yesterday following the arrest of the ex-Minister of Petroleum Resources, investigation showed.

    Sources said London was thought to be a safe haven for after leaving office in May.

    Apart from being a Chevening Scholar, courtesy of the British High Commission, it was learnt that security agencies in the UK did not give her any inkling as she was shuttling between Nigeria and the UK.

    A source, who spoke in confidence, said: “Those in Jonathan’s camp felt the ex-president’s visit to President Muhammadu Buhari had created a window for mutual talks and negotiation on alleged graft findings by the new administration.

    “They did not know that Buhari really meant business to retrieve looted funds.

    “Actually, some ex-ministers, including Diezani, have already placed their counsel in Nigeria on standby in case of any invitation by anti-graft agencies. Their plan was that the matter would be settled in Nigerian court.

    “But the arrest of the ex-Minister in London has added a new dimension to the anti-corruption agenda of the Buhari administration.

    “Those in Jonathan’s camp were shocked by Diezani’s arrest. They have been desperately trying to get in touch with the ex-Minister since yesterday without success.

    “As at today (yesterday), they are worried that Diezani has cut off contact with everyone, creating fears that she might spill the beans.

    “The fear in Jonathan’s camp is that Diezani might be given the James Ibori treatment. They are suspecting that she might be tried and convicted in the UK.”

    A former presidential aide said: “None of us has been able to reach out to Diezani because all her lines are off. She has also not called to share her travails with anybody.”

     

    How she was nabbed

    It was gathered yesterday that the voluntary surrender to the National Crimes Agency (NCA) by a Nigerian oil baron laid the foundation for a comprehensive investigation, and arrest of Diezani.

    The said oil baron, according to sources, was allegedly fronting for the ex-Minister and may be holding some looted funds in trust for her.

    It was learnt that following surveillance and monitoring by security agencies, the oil baron confided in a former Head of State who encouraged him to open up to the NCA on all such slush accounts.

    “The oil magnate voluntarily surrendered to NCA because he knew the game was up. He was not having peace where he was staying in the UK. But the former Head of State assisted in cracking this financial crime.”

    Mrs. Alison-Madueke and her alleged accomplices are expected to be arraigned in a London court tomorrow.

    The suspects were questioned for several hours by security agents in London.

    This came four months after Prime Minister David Cameron pledged Britain’s support for president Muhammadu  Buhari’s war against corruption.

    Hours after the ex-minister’s arrest, operatives of the Economic and Financial Crimes Commission (EFCC) sealed off her high brow Asokoro,Abuja residence for a search.

    Sources said the anti corruption agency had a court warrant to conduct the search.

     

     

  • Money laundering: CBN moves against banks

    Money laundering: CBN moves against banks

    THE Central Bank of Nigeria (CBN) has impressed the need on money deposit banks to discourage money laundering.

    The apex bank, which has come hard against banks aiding high net worth individuals to launder money, yesterday reiterated its commitment to deal with any bank involved in such malfeasance.

    In a statement by its Director, Corporate Communications, Ibrahim Mu’azu, the bank said following report by the Global Financial Integrity group, which ranks Nigeria as one of the 10 largest countries for illicit financial flows in the world, with an about US$15.7 billion of illicit funds annually, it becomes imperative that banks should be on the alert.

    It reads: “In the light of this avoidably negative commentary, we wish to draw the public’s attention to several protocols on illicit fund flows, money laundering and terrorism financing both in Nigeria and around the world and warn that the CBN will increase its vigilance to ensure that Nigerian banks are not used as conduits for illicit fund flows, especially in foreign currencies.”

    The CBN said it was however heartening to note that: “Nigerian banks have started to curtail the acceptance of foreign currency cash deposits, much the same way as customers in other countries cannot just walk into banks and make foreign currency cash deposits without proper documentation.”

    The CBN, he stressed, “will continue to support the federal government’s fight against money laundering, corruption, and terrorism financing and will block any and every avenue that may be used for these purposes.

     

     

     

  • Money-laundering: Fani-Kayode knows fate today

    Judgment will be delivered today in the trial of a former Minister of Aviation, Chief Femi Fani-Kayode.

    The former Director of Media and Publicity of the Peoples Democratic Party (PDP) Presidential Campaign is accused of money laundering.

    Justice Rita Ofili-Ajumogobia decided not to deliver the verdict on June 18 because the prosecution counsel, Mr. Festus Keyamo, was absent.

    Fani-Kayode, while serving as minister of Culture and Tourism, was accused of making a transaction exceeding N500,000 on September 20, 2006, which was not done through a financial institution.

    He was accused of accepting N2.1 million in cash, which was paid into his personal bank account by his aide, Supo Agbaje.

    The defendant pleaded not guilty to the alleged offence, which the Economic and Financial Crimes Commission (EFCC) said contravened the Money Laundering Act.

    The judge had, last November 17, directed Fani-Kayode to defend two of the 40-count charges.

    The judge held that the commission did not prove the other counts sufficiently and partially upheld Fani-Kayode’s no-case submission.

    She discharged and acquitted him of the rest of the 38 counts on the grounds that the prosecution failed to prove “elements” of the allegations.

    Fani-Kayode, therefore, defended counts 25 and 26.

     

  • IMF plans risk-based approach on money laundering

    The International Monetary Fund (IMF) is planning a risk-based approach to Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) supervision in Nigeria, Acting Director, Nigeria Financial Intelligence Unit (NFIU), Francis Oka-Philips Usani, has said.

    At the workshop by the Chartered Institute of Bankers of Nigeria (CIBN) on AML/CFT regimes in Nigeria, he said the determination to tackle the menace has resulted in the development of similar procedures across all regulatory authorities as well as the financial intelligence unit that involves the Central Bank of Nigeria, the Securities and Exchange Commission (SEC), the National Insurance Commission and the NFIU.

    Usani, who spoke on the theme: “New international initiatives in combating money laundering”, said the Presidential Committee and the agencies are at the fore of the national risk assessment to provide a basis for further developing the overall AML/CFT regime and strategic framework.

    He said more than 20 African countries, including Nigeria, have ratified the United Nations Convention against corruption, Article 14,  which deals with money-laundering prevention.

    “The convention calls for all states to implement a regulatory and supervisory regime which minimises the possibility of money laundering through customer identification, reporting of suspicious transactions and record keeping,” he said.

    He explained that there is also a recommendation which requires that states establish methods to monitor the movement of cash and negotiable instruments across borders.

    “Like most of the other regional and global initiatives, the Convention calls all signatory states to criminalise the act of money laundering,” he said.

    The Financial Action Task Force (FATF) in October, 2013 removed Nigeria from the list of countries identified as jurisdictions with significant deficiencies in their Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) regimes.

    This came on the heels of the 2012 and 2013 amendments of the MLPA, 2011 and the Terrorism (Prevention) Act, 2011. The global anti-money laundering body gave its countenance to Nigeria’s significant progress in improving its AML/CFT regime and noted that the country had established the legal and regulatory framework to meet its commitments in its Action Plan regarding the strategic deficiencies that the FATF evaluators had identified previously.