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Tag: Money laundering

  • Alleged money laundering: Fani-Kayode knows fate June 18

    Alleged money laundering: Fani-Kayode knows fate June 18

    A Federal High Court, Lagos, yesterday fixed June 18 for judgment in the alleged money laundering case filed against former Aviation Minister Femi Fani-Kayode by the Economic and Financial Crimes Commission (EFCC).

    Justice Rita Ofile-Ajumogobia adjourned for judgment after parties in the suit adopted their final written addresses.

    She also granted Fani-Kayode’s prayer to substitute one of his sureties, Wale Ajisebutu, with one Ogbor Elliot, following Ajisebutu’s request to withdraw his suretiship.

    At the resumed hearing yesterday, counsel to Fani-Kayode, led by Ifedayo Adedipe (SAN), urged the court to dismiss the two-count charge against the accused as well as discharge and acquit him.

    Adedipe told the court that the defence relied and adopted its final written address filed on April 7, and its reply on point of law to the prosecution’s written address, dated April 27.

    He argued that the prosecution’s submission in the case were misplaced and misguided, accusing the EFCC of wanting to show to the world that they have a “big fish”. But Adedipe insisted that “there’s no fish here”.

    According to Fani-Kayode’s lawyers, the prosecution failed woefully to prove that the accused received the alleged N1 million, adding that no witness was brought by the EFCC to substantiate its claim.

    He said: “It is now an accepted principle of law that the prosecution in all criminal cases must prove its case.

    “Nobody gave evidence that he gave or saw the accused collecting money (N1 million). The only evidence was that of prosecution witness Supo Agbaje, whom the prosecution had declared wanted.

    “In his statement, the witness said he deposited N1 million in the accused’s account, but never said he saw the accused collecting money.

    “What happened after the receipt of money is not the case, but receiving the money. The accused never confessed to receiving money from anybody and there is no such evidence before the court.”

    Adedipe described as unreliable, the evidence by Prosecution Witness (PW4), noting that it never stated the date, place as well as denominations of the money given to him by the accused to lodge in his account.

    “It is difficult to know where the lies began and truth resurfaces. Reasonable doubt exists in the case of the prosecution, and under such circumstances, the matter should be resolved in favour of the accused.

    “This is a case that cries out to high heavens for lack of evidence. I pray this court to hold that the prosecution has failed to prove its case and to discharge and acquit the accused,” said Adedipe.

    But EFCC’s lawyer, Festus Keyamo countered the defence submission and prayed the court to find Fani-Kayode guilty as charged.

    Drawing the court’s attention to Exhibit PW4G, Keyamo held that Fani-Kayode admitted in his ‘confessional statement’ that he made cash transactions above N500 thousand without using a financial institution.

    He argued that there was actual receipt of the cash, urging the court to look at the purpose for the enactment of the Money Laundering Act.

    “If the law insists that the prosecution must prove the source of fund, it will defeat the essence of the law.

    “As Minister for Tourism, the accused was found with large sums of money, which he couldn’t explain.

    “It is not in every case that the burden of prove lies with the prosecution. In the case at hand, the prosecution has discharged its burden by showing that huge sums of money above the limit were found on him and he couldn’t explain where the money came from,” he said.

    Keyamo said the burden shifted to the defence to provide documents to disprove the prosecution’s case.

    He said: “The only way to have gotten the document to collapse the prosecution’s case was to bring bank statement of that transaction. The court wants to see that the transaction was done through a financial institution.

    “It will make mincemeat of the Money Laundering Law and render it ineffective should the court rule that the prosecution must at all time, prove where the money is coming from.

    “Even if the transaction is legitimate, the volume of money and its source will be the crime.

    “It is irrelevant to try to prove that the money was transaction from his father’s estate because the crime is the volume of money.”

    Keyamo added that Fani-Kayode had in his confessional statement dated December 22, 2008, admitted to have made transactions above N500,000 in his account arising from his father’s estate.

    He argued that the accused also admitted having knowledge of certain cash and cheque transactions in and out of his account that exceeded the limit.

    Keyamo drew the court’s attention to the investigation report written by the Investigating Police Officer ( IPO), who said his team did not know where the money came from, praying that Fani-Kayode be convicted for the alleged offence.

    The former minster was accused of making a transaction exceeding N500,000 on September 20, 2006, which was not done through a financial institution, by accepting N2.1 million in cash.

    The money was allegedly paid into his personal bank account by his aide, Supo Agbaje, while he served as Minister of Culture and Tourism.

    The defendant pleaded not guilty to the alleged offence, which EFCC said contravenes the Money Laundering Act.

     

     

  • Adopt new approach to money laundering, says NEXIM

    Nigerian Export-Import Bank (NEXIM) Chief Risk Officer (CRO) Dr. Emmanuel Abolo has said banks and other financial institutions need to adopt a risk-based approach in tackling money laundering and terrorist financing.

    Speaking during the anti-money laundering seminar organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, he said such approach would allow resources to be allocated in the most efficient ways in accordance with priorities so that the greatest risks receive the highest attention.

    He said the alternative approaches are that resources are either applied evenly, so that all financial institutions, customers, products, among others receive equal attention, or that resources are targeted, but on the basis of factors other than the risk assessed.

    He said adopting a risk-based approach implies the adoption of a risk management process for dealing with money laundering and terrorist financing, he said.

    “This process encompasses recognising the existence of the risk(s), undertaking an assessment of the risk(s) and developing strategies to manage and mitigate the identified risks,” he said.

    Abolo said a risk analysis must be performed to determine where the money laundering and terrorist financing risks are the greatest.

    “Countries will need to identify the main vulnerabilities and address them accordingly. Institutions will need to identify higher risk customers, products and services, including delivery channels, and geographical locations. These are not static assessments. They will change over time, depending on how circumstances develop, and how threats evolve,” he said.

    He said the strategies to manage and mitigate the identified money laundering and terrorist financing risks in financial institutions are typically aimed at preventing the activity from occurring through a mixture of deterrence, detection, and record-keeping so as to facilitate investigations.

    “Proportionate procedures should be designed based on assessed risk. Higher risk areas should be subject to enhanced procedures: for the financial services sector, this would include measures such as enhanced customer due diligence checks and enhanced transaction monitoring. It also follows that in instances where risks are low, simplified or reduced controls may be applied.

    “There are no universally accepted methodologies that prescribe the nature and extent of a risk-based approach. However, an effective risk-based approach does involve identifying and categorising money laundering risks and establishing reasonable controls based on risks identified,” he said.

    He said a risk-based approach is not necessarily an easy option, and there may be barriers to overcome when implementing the necessary measures.

    “Some challenges may be inherent to the use of the risk-based approach. Others may stem from the difficulties in making the transition to a risk-based system. A number of challenges, however, can also be seen as offering opportunities to implement a more effective system. The risk-based approach is challenging to both public and private sector entities. Such an approach requires resources and expertise to gather and interpret information on risks, both at the country and institutional levels, to develop procedures and systems and to train personnel,” he said.

     

    He advised that sound and well-trained judgment be exercised in the implementation within the institution and its subcomponents of such procedures, and systems. It will certainly lead to a greater diversity in practice which should lead to innovations and improved compliance.

    “Implementing a risk-based approach requires that financial institutions have a good understanding of the risks and are able to exercise sound judgment.  This requires the building of expertise within financial institutions, including for example, through training, recruitment, taking professional advice and ‘learning by doing’. The process will always benefit from information sharing by competent authorities. The provision of good practice guidance is also valuable,” he said.

     

  • Alleged money laundering: Fani-Kayode’s surety withdraws

    Alleged money laundering: Fani-Kayode’s surety withdraws

    THE Director of Media and Publicity of the Peoples Democratic Party (PDP) Presidential Campaign Organisation, Chief Femi Fani-Kayode, who is under trial for money laundering, will have to find a surety or risk being re-arrested.

    One of his sureties has applied to the Federal High Court in Lagos to withdraw from guaranteeing the defendant’s temporary freedom.

    The surety, Wale Ajisebutu, told Justice Rita Ofili-Ajumogobia that he urgently needed to make use of his Certificate of Occupancy (C of O).

    He deposited it as one of the conditions for granting Fani-Kayode bail.

    The judge was to consider the application yesterday, but the defence, it was learnt, asked for another date.

    The matter has been fixed for March 26 for hearing of the surety’s application and continuation of trial.

    Fani-Kayode was accused of making a transaction exceeding N500,000 on September 20, 2006, which was not done through a financial institution, by accepting N2.1 million in cash.

    The money, said the prosecution, was paid into his personal bank account by his aide, Supo Agbaje, while he served as Minister of Culture and Tourism. He pleaded not guilty.

    The alleged offence contravenes the Money Laundering Act.

     

  • Money laundering: Igbinedion, others know fate April 17

    Federal High Court sitting in Benin City has reserved judgment in a suit of alleged money laundering and abuse of office against the son of Chief Gabriel Igbinedion, Michael, Patrick Eboigbodin and their four companies, for April 17.

    The crime was allegedly committed when Chief Lucky Igbinedion was governor of Edo State.

    The ex-governor was earlier freed but an appeal court ruling reverted the case to the lower court, insisting that Lucky has a case to answer.

    Michael, Lucky’s younger brother, served as his personal assistant while Patrick was a former accountant-general.

    The companies are: Gava Corporation Limited, Romrig Nigeria Limited, PMI Securities Company Limited and PML (Nigeria) Limited.

    Judgment has been postponed severally because of the ill-health of Justice A.M Liman.

    Liman, who gave the April 17 date, explained that the first adjournment was due to the protracted judiciary strike that ended in February, while the second was as a result of his ill-health.

    Abubakar Shamsudeen and Omosede Igbinedion, who held brief for Ricky Tafa (SAN), and Mike Ozekhome (SAN), re-adopted their written addresses, which were adopted before Justice Liman on November 14, 2014.

    Richard Ahonaruogo also re-adopted his written address, as well as Tayo Olukotun, who held brief for counsel to Economic and Financial Crimes Commission (EFCC), Rotimi Jacobs (SAN).

    Explaining the essence of re-adoption of written addresses, Olukotun said: “the constitutional provision is that after 90 days of adopting written addresses, and no miscarriage of justice, judgement can still be delivered. But re-adoption of written addresses by both counsels is advised, to avoid technicalities”.

    Olukotun said some of these technicalities could become a ground for an appeal.

    Patrick Eboigbodin and Micheal Igbinedion, younger brother to Lucky Igbinedion, former Edo State governor, along with their companies: Gava Corporation Limited; Romrig Nigeria Limited; PML Securities Company Limited and PML Nigeria Limited, were arraigned by the EFCC on an 81-count charge bordering on alleged money laundering, misappropriation of funds, conspiracy and abuse of office.

     

  • Money laundering: Igbinedion, others know fate April 17

    Money laundering: Igbinedion, others know fate April 17

    A Federal High Court sitting in Benin City has reserved judgment on April 17 in the case of alleged N25bn money laundering and abuse of office leveled against former governor of Edo State, Chief Lucky Igbinedion and five others by the Economic and Financial Crimes Commission (EFCC).

    The judgment was earlier fixed for January 30th but was postpone over ill-health of the trial Judge, Justice A.M Liman.

    Other accused are Michael Igbinedion, a younger brother to Lucky who served as his personal assistant, Patrick Eboigbodin former Accountant-General and four companies naming Gava Corporation Limited, Romrig Nigeria Limited, PMI Securities Company Limited and PML (Nigeria) Limited.

    The EFCC had slammed a 66-count charge against the accused.

    Justice Liman who gave the date after counsels to both parties adopted their final written addresses apologized for delay in delivering judgment in the case.

    Liman explained that the delayed was due to his ill-health and not by want of attention or diligence on the part of the court.

    “Let me express my apology for the delay in giving judgment in this case. Judgment has been adjourned for about three or four times on this matter and the delay is not for want of attention or lack of diligence on the part of the court but for unwarranted circumstances occasioned by my ill-health,” he said.

  • Money laundering, terrorist financing threaten economy

    The danger posed to West Africa’s economy by money laundering and terrorist financing has become more pronounced over the last 10 years, according to an economic watchdog.

    The Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) said the “twin evils” could harm the sub-region’s economy, if not tackled.

    It lamented that knowledge of the “twin evils” and the various dimensions of their manifestations were low in the region.

    A critical factor to this, GIABA said, was dearth of local expertise to enable the generation and deepening of knowledge money laundering and terrorist financing.

    To bridge this knowledge gap, GIABA said it initiated an Annual AML/CFT Research Grant to build regional capacity for research on ML/TF by providing some funds to facilitate the conduct of short-term studies on identified research topics.

    The body, through the grant, has been empowering civil society groups in Ghana on the implementation of AML/CFT Measures; Financial Inclusion and Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) Standards in Sierra Leone; Money Laundering Through Non-Profit Organisations in West Africa, among other interventions.

    The agency has also been involved in the development of effective civil society interventions for managing cross-border cash flows in the informal sector.

    It said the report on Financial Inclusion and Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) Standards in Sierra Leone, which assessed the link between financial inclusion and AML/CFT, shows that while the former helps to lower ML/TF risks, a wholesale implementation of the latter without regard to the economic and financial peculiarities of the country could exclude most poor individuals and households from the formal banking and financial systems and, by extension, undermine AML/CFT efforts.

  • Judge: Sylva, others to attend court on N19.5m ‘money laundering’ charge

    Judge: Sylva, others to attend court on N19.5m ‘money laundering’ charge

    Justice Ahmed Mohammed of the Federal High Court, Abuja, has ordered that former Bayelsa State Governor Timipre Sylva and his co-accused should always attend court on the N19.2 billion money laundering charge the Economic and Financial Crimes Commission (EFCC) preferred against them.

    The judge’s order was contained in a ruling yesterday on lawyers’ arguments on whether or not it was necessary for the accused to attend court and mount the dock when they were challenging the court’s jurisdiction, the competence of the charge and seeking the disqualification of the prosecution lawyer, Rotimi Jacobs (SAN).

    The EFCC, late last year, filed the 42-count charge, in which Sylva and others were accused of laundering about N19.2 billion.

    Charged with Sylva are: Francis Okoburo, Gbenga S. Balogun, Samuel Ogbuku, Marlin Maritime Limited, Eat Catering Services Limited and Haloween Blue Construction and Logistics Limited.

    Sylva and Balogun reluctantly mounted the dock yesterday, but Okoburo and Ogbuku were absent in court.

    This prompted prosecution lawyer, A. Adeniyi, to urge the court to issue bench warrants for their arrest.

    Defence lawyers, Isreal Olorundare (SAN), who represented Sylva, opposed the prosecution’s application for bench warrants.

    Olorundare averred that since the accused were challenging the court’s jurisdiction, the competence of the charge and the continued appearance of the prosecution lawyer in the case, the court should first decide those issues before proceeding to hear the charge.

    The lawyer argued that since the accused persons’ applications were still pending, the court should decide them one way or the other before taking their pleas.

    He said the prosecution lawyer was disabled from making any application, including for a bench warrant, because his appearance in the case was being challenged.

    Lawyers to Okoburo and Ogbuku, James Odiba and Ajayi Olowo apologised to the court for their clients’ absence.

    Odiba said his client was ill and had gone on a medical trip to Senegal; Olowo said his client was in another court in Yenagoa, Bayelsa State, over another criminal case involving him.

    They agreed with Olorundare’s argument that pending issues raised by the accused against the court and the prosecutor should be resolved before any further steps  taken in the case.

    Justice Mohammed held that since there was a pending charge against Sylva and others, they were, by law, required to attend court at every hearing, despite their pending applications against the court’s jurisdiction, the charge and the prosecution lawyer.

    The judge held that the defence lawyer failed to show any legal provision that the client could stay away from court just because they had pending applications challenging the jurisdiction of the court and the competence of the charge.

    He also held that until he decides whether or not the prosecution lawyer was competent to proceed with the case, he could not be restrained from making any application in the case, including the application for bench warrant.

    Justice Mohammed declined to issue the bench warrant on the grounds that the lawyers to Okoburo and Ogbuku had sufficiently explained why their clients were absent in court.

    He adjourned till October 8 for hearing of the pending applications by the accused.

  • CBN moves to check money laundering ahead of 2015 elections

    CBN moves to check money laundering ahead of 2015 elections

    Ahead of the 2015 general elections, the Central Bank of Nigeria (CBN) is reviewing the money laundering policy to curb abuses.

    Findings showed that the CBN is reviewing the reporting line for compliance officers to ensure they report directly to bank Chief Executive Officers (CEOs) against the prevailing practice in most banks where they report to general managers or directors.

    This, a CBN source said, makes it difficult for money laundering breaches to be sent to the CEOs and the Nigeria Financial Intelligence Unit (NFIU).

    “What the CBN wants is that rather than the compliance officers reporting to directors, which is the case at present, will report directly to bank CEOs to ensure that money laundering breaches are tackled without delay. We want to monitor major fund transfers and movements, especially as the 2015 election approaches,” the source said.

    The source said the need to address the anomaly prompted the CBN to issue a circular at the weekend which mandates the banks to promote their compliance officers to positions where they can report directly to their CEOs.

    In the circular, the CBN said it was worried over poor qualification of compliance officers in some banks and discount houses.

    The circular signed by K. O. Balogun for director, Banking Supervision, said information available to the apex bank revealed that chief compliance officers of some banks and discount houses were below the grade of general manager.

    The CBN said equally worrisome was that most of them do not report directly to the Board of Directors.

    “This is a flagrant disregard of extant laws and regulations on the subject. The CBN circular ref BSD/2/2002 dated August 8, 2002 and FPR/DIR/GEN/001/022 dated  July 18, 2013 directed that banks and discount houses should designate Chief Compliance Officers, not below the grade of a General Manager to, among other things, apply the provisions of the relevant Acts and circulars on money laundering at various levels of their institutions,” it said.

    It said Section 9(1) of the Money Laundering (Prohibition) Act, 2011(as amended) also requires them to designate, at management level, Chief Compliance Officers (CCOs) in their Head Offices and branches, who have the relevant competence, authority and independence to implement their institutions AML/CFT Compliance Programme.

    It said Section 7(2) of Central Bank of Nigeria (AML/CFT in Banks and Other Financial Institutions in Nigeria) Regulations, 2013 stipulates that the CCO shall be appointed at management level and shall report directly to the Board on all matters under the Regulations.

    The CBN, therefore, directed that no Chief Compliance Officer in their institutions is below the grade of General Manager without the CBN prior approval.

    Accordingly, the particulars of all current CCOs with evidence of the CBN approval of same and reporting line should be forwarded to the Director Banking Supervision within 1(one) week from the date of this letter.

    The CBN also observed with concern the lack-lustre attendance of CCOs of the monthly meetings of the Committee of Chief Compliance Officers of Banks in Nigeria (CCCOBIN), which it said has resulted in the inability of the forum to form the required quorum necessary to take vital decisions pursuant to its mandate.

  • Govt seeks Nigerians’ support to combat money laundering, terrorism

    Govt seeks Nigerians’ support to combat money laundering, terrorism

    Special Duties Minister Kabiru Taminu Turaki (SAN) has urged Nigerians to cooperate with the Federal Government to fight money laundering, corruption and terrorism.

    Turaki spoke at this year’s annual public lecture organised by J-K Gadzama LLP, with the theme: “Money laundering and financial crimes: problems of international enforcement.”

    He said money laundering, corruption and terrorism had become a threat to the nation, adding that all hands must be on deck to combat them.

    Turaki said: “And so for us as a government, the Federal Government is taking both the issue of corruption and money laundering very seriously and that is why existing institutions established to fight corruption have been strengthened by President Goodluck Jonathan in such a way to give them a free hand to perform their statutory responsibilities.

    “We have seen a lot of public officers, some serving and some retired, being prosecuted here and there. You don’t hear of any interference from the Presidency with the prosecution of alleged offenders, or any of its departments. This is the beauty of what the President is doing as soon as credible allegations with concrete evidence are levelled against individuals. Those individuals should be tried promptly and given the opportunity to defend themselves without any interference. “Hardly do you hear issues of Nolle pro sequi being raised any more because the President believes that as soon as allegations are raised against anybody, even a public officer, that public officer should be able to defend him or herself. That is what has been happening and for us as a government, one can say without fear of contradiction that Mr. President has taken the issue of corruption and money laundering head on.”

    Turaki urged Nigerians to support the government, saying: “We need people who will give information. We need whistle blowers. We need patriotic Nigerians that should be able to give information to not only the security agencies, but will send them to several media that are now available. This can be through petition, public agencies and institutions.”

    Assessing the lecture, Chief Adegboyega Awomolo (SAN) said: “Let us punish those who for one reason or the other display impunity because what we are seeing today is impunity. We have to walk towards eliminating impunity.”

    Prof. Paul Idornigie, said: “ In the case of international crime like money laundering, it can have multiple jurisdictions. I feel that there is need for a general guideline, of which there is non at the moment.

    “What happens is that countries like America assume jurisdiction even on matters that they ordinarily should not.

    “I feel that there is need for more collaboration in determining the guidelines for assuming jurisdiction.”

     

  • Judges Seminar stalls trial of Ikuforiji

    Judges Seminar stalls trial of Ikuforiji

    The trial of Mr Adeyemi Ikuforiji, Speaker, Lagos State House of Assembly, was on Monday stalled at a Federal High Court Lagos, due to a seminar for judges.

    Ikuforiji is standing trial alongside his personal assistant, Oyebode Atoyebi, on an amended 54-count charge of money laundering.

    The suit, which was fixed for continuation of hearing, could not go on as earlier scheduled, due to a judges’ seminar organised by the Assets Management Corporation of Nigeria (AMCON).

    When the case was called, the prosecutor, Chief Godwin Obla (SAN), said that he was aware of the AMCOM seminar, which necessitated an adjournment.

    Defence Counsel, Chief Wole Olanipekun (SAN), also consented to an adjournment and urged the prosecutor to produce his remaining witnesses in court on the next date, to ensure speedy trial.

    “I do not know how many witnesses my learned friend has left, but if he will produce them in court on the next date, we will not mind being the tenants of the court,” Olanipekun said.

    Justice Ibrahim Buba, in a short ruling, adjourned the case till Tuesday, March 18, for continuation of hearing.

    Buba said that hearing in the case would begin at 9.00a.m. and urged the prosecution to produce its witnesses, so as to make remarkable progress in the case.

    The News Agency of Nigeria (NAN) reports that the Economic and Financial Crimes Commission (EFCC), had re-arraigned the accused on June 24, 2013, on the amended charge.

    They had however, pleaded not guilty to the charge, and were granted bail in the sum of one billion naira each, with two sureties, each in the sum of N500 million.

    On Nov. 21, 2013, the prosecution opened its case by calling on its first witness, Mr Adebayo Adedeji, an investigating police officer.

    He had testified on how Ikuforiji approved various sums of money from the House.

    In the charge, it was alleged that the duo conspired between April 2010 and July 2011, to commit an illegal act of accepting cash payments amounting to N273 million from the LAHA without going through a financial institution.

    It was also alleged that Ikuforiji used his position to misappropriate about N500 million of the LAHA’s funds.

    The offences are said to contravene the provisions of Section 18(a) of the Money Laundering (prohibition) Act 2011