The Nation Newspaper

Tag: NFIU

  • NFIU deploys AI, machine learning to combat financial crimes

    NFIU deploys AI, machine learning to combat financial crimes

    The Nigerian Financial Intelligence Unit (NFIU) has moved a step toward enhancing its operational efficiency by deploying advanced Artificial Intelligence (AI) and Machine Learning (ML) tools into its technology platforms.

    The development was part of a broader initiative aimed at improving the speed and accuracy of the NFIU’s information and data analysis processes.

    The Director/CEO of NFIU, Hajiya Hafsat Bakari, made this disclosure at the opening session of the first NFIU Management Staff Retreat held in Abuja on Monday, August 19.

    According to her, the deployment of these cutting-edge technologies is intended to expedite the NFIU’s operational duties, allowing for quicker and more effective processing of intelligence.

    In her address, Hajiya Bakari noted the NFIU’s commitment to aligning with the federal government’s policy of creating a paperless working environment.

    She noted that the NFIU has already transitioned to a more digital workflow and has rolled out the Crimes Records Information Management System (CRIMS). This system facilitates secure and encrypted information sharing, enhancing the unit’s ability to manage crime-related data.

    “The Unit is already in conformity with the federal government policy of a paperless working office environment. Additionally, the Crimes Records Information Management System (CRIMS) has been deployed to more competent authorities and states of the federation to further support information sharing through a secured and encrypted tool.”

    Recognizing the global nature of serious crimes and the fact that the proceeds of crime often cross borders, Hajiya Bakari noted that the NFIU has bolstered its international partnerships.

    She explained that these collaborations are crucial for effectively addressing transnational threats and aligning Nigeria’s efforts with global standards in combating financial crimes.

    Read Also: OGFZA partners NFIU to enhance investment

    “Recognizing the myriad threats we face, the dynamic nature of the criminal environment, and the vulnerabilities that exist within our domestic context, we developed and implemented a robust and innovative organizational structure that aligns our capacities and resources to the sectors of the economy that are most vulnerable to abuse by money launderers and terrorist financers,” Hajiya Bakari said.

    This new organizational structure enables the NFIU to prioritize responses to the highest-risk predicate offences, ensuring that the unit provides timely, credible, and actionable intelligence to its stakeholders and partners.

    The strengthened framework also facilitates more effective cooperation with both domestic and international entities, enhancing the unit’s ability to tackle financial crimes comprehensively.

    To support this new structure, the NFIU has embarked on a strategic re-engagement exercise. Hajiya Bakari mentioned that the management has been actively visiting various agencies to gather direct feedback on their collaboration with the NFIU.

    These engagements have led to the formation of several joint task forces and inter-agency committees, which are focused on strengthening cooperation in the fight against criminal activities. The NFIU has also engaged extensively with the private sector, leveraging reports from these entities to shape its internal operations.

    The Attorney General of the Federation and Minister of Justice, Lateef Fagbemi who was represented at the retreat, commended the NFIU for its relentless efforts in combating Money Laundering, Terrorism Financing (ML/TF), and Proliferation Financing.

    He emphasised that the NFIU’s initiatives are critical in ensuring Nigeria’s removal from the Financial Action Task Force (FATF) grey list by May 2025.

    The Chairman of the National Drug Law Enforcement Agency (NDLEA), Brig. Gen. Mohamed Buba Marwa (Rtd), also expressed his appreciation for the NFIU’s swift responses to information requests.

    He revealed that in 2024 alone, the NDLEA received 76 reports from the NFIU, which led to significant recoveries, including hotels, properties, and bank accounts, as well as several convictions.

    Marwa praised the NDLEA’s success in making over 52,000 arrests and destroying cannabis farms nationwide, attributing part of these successes to the intelligence provided by the NFIU. However, he urged the NFIU to further improve its turnaround time for responding to requests, stressing the unit’s vital role in the fight against criminality.

    Muhammad Sani Abdullahi, Deputy Governor on Economic Policy at the Central Bank of Nigeria (CBN), noted the importance of a strong regulatory regime to prevent criminals from exploiting the financial system.

    He noted that despite the progress made, there remain gaps that must be addressed through ongoing sensitization, dissuasive sanctions, and effective supervision. Abdullahi reiterated the CBN’s confidence in the NFIU’s leadership to guide the country toward a secure financial future.

    The Commandant General of the Nigerian Security and Civil Defence Corps (NSCDC), Abubakar Audi, also spoke at the retreat, sharing that intelligence from the NFIU had been instrumental in identifying over 5,000 suspects, uncovering 300 illegal refineries, and securing 100 convictions.

    Audi expressed his appreciation for the deployment of CRIMS, which has improved information dissemination among stakeholders.

    However, he called for the system’s further improvement and its expansion to areas like the Niger Delta to enhance the operational capabilities of state commands.

  • Nigeria completes 30% action plan to exit FATF grey list

    Nigeria completes 30% action plan to exit FATF grey list

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

    This connotes that Nigeria has increased monitoring of identified deficiencies in combating money laundering, terrorist financing, and proliferation financing.

    According to a statement released by the Nigerian Financial Intelligence Unit (NFIU), “Nigeria has completed 30% of the Action Plan developed as part of the greylisting process.”

    This progress report was well-received by the FATF, resulting in the approval of Nigeria’s third Progress Report at the June 2024 FATF Plenary meeting in Singapore.

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

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

    Read Also: Nigeria intensifies efforts to exit FATF Grey list

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

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

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

    Nigeria’s progress report approval and positive feedback from the FATF are encouraging signs.  Continued implementation of the Action Plan is crucial for exiting the grey list by early 2025.  This will demonstrate Nigeria’s dedication to financial transparency and a more secure financial system.

  • NFIU cracks down on deceptive foreign wire transfers

    NFIU cracks down on deceptive foreign wire transfers

    The Nigerian Financial Intelligence Unit (NFIU) has taken a firm stance against fraudulent telegraphic transfers also known as wire transfers. The aim is to safeguard the nation’s financial system. 

    In a recent advisory, the NFIU announced its intention to generate intelligence reports on individuals or entities linked to such deceptive practices to pave the way for investigations and prosecutions.

    This advisory stems from a surge in petitions received by the NFIU. Financial institutions, government agencies, and other parties have approached the Unit seeking assistance in tracing and recovering funds supposedly transferred from foreign entities to Nigerian business partners. However, a closer look revealed a disturbing trend.

    The NFIU has identified several red flags associated with these deceptive transfers.  Many involve the use of forged documents, including copies of SWIFT messages, Memoranda of Understanding (MoUs), and supporting documents designed to deceive unsuspecting victims.

    The NFIU highlighted the potential consequences of these false allegations stating that. “Misrepresentation of material facts could result in a loss of confidence by the banking public.” Public perception that banks are holding onto transferred funds could damage the reputation of both the banking industry and the entire financial system.

    The NFIU has then issued clear recommendations for both banks and the public.  For banks, the advisory emphasizes the importance of conducting “Enhanced Due Diligence” upon receiving notification of a large incoming transfer.  This process would verify the authenticity of presented documents to prevent fraudulent activity.

    Read Also: NFIU cracks down on deceptive foreign wire transfers

     Furthermore, the NFIU has urged banks to promptly respond to customer inquiries regarding such transfers, potentially thwarting attempts to misuse acknowledgement letters for fraudulent purposes. The NFIU encouraged banks to file Suspicious Activity Reports (SARs) with them on any entity or individual suspected of making frivolous or suspicious claims.

    With regards to the public, the NFIU said it is committed to educating the public about the dangers of these deceptive transfers.  The advisory urges citizens to be aware of the red flags and modus operandi employed by fraudsters.  The public is also encouraged to scrutinize potential business opportunities before committing financial resources and to avoid basing investment decisions solely on unverified telegraphic or wire transfers.

    Going forward, the NFIU will analyze and profile both senders and recipients of these deceptive transfers.  Intelligence reports based on this analysis will be disseminated to relevant law enforcement agencies (LEAs) and counterparts, both domestically and internationally, fostering a collaborative effort to combat financial crime.

     The NFIU did not overlook the role of legal professionals in this fight.  The advisory emphasized the need for the Nigerian Bar Association (NBA) to sensitize its members on the importance of verifying and authenticating client documents before taking action. Law firms are urged to conduct thorough due diligence on clients and the documents they provide, acting as a vital line of defense against fraudulent activity.

  • NFIU cracks down on deceptive foreign wire transfers

    NFIU cracks down on deceptive foreign wire transfers

    The Nigerian Financial Intelligence Unit (NFIU) has taken a firm stance against fraudulent telegraphic transfers also known as wire transfers. 

    The aim is to safeguard the nation’s financial system.  

    In a recent advisory, the NFIU announced its intention to generate intelligence reports on individuals or entities linked to such deceptive practices to pave the way for investigations and prosecutions.

    This advisory stems from a surge in petitions received by the NFIU. 

    Financial institutions, government agencies, and other parties have approached the Unit seeking assistance in tracing and recovering funds supposedly transferred from foreign entities to Nigerian business partners. 

    However, a closer look revealed a disturbing trend.

    The NFIU has identified several red flags associated with these deceptive transfers.  

    Many involve the use of forged documents, including copies of SWIFT messages, Memoranda of Understanding (MoUs), and supporting documents designed to deceive unsuspecting victims.

    The NFIU highlighted the potential consequences of these false allegations stating that, “Misrepresentation of material facts could result in a loss of confidence by the banking public.” Public perception that banks are holding onto transferred funds could damage the reputation of both the banking industry and the entire financial system.

    The NFIU has then issued clear recommendations for both banks and the public.  

    For banks, the advisory emphasizes the importance of conducting “Enhanced Due Diligence” upon receiving notification of a large incoming transfer.  This process would verify the authenticity of presented documents to prevent fraudulent activity.  

    Furthermore, the NFIU has urged banks to promptly respond to customer inquiries regarding such transfers, potentially thwarting attempts to misuse acknowledgement letters for fraudulent purposes. 

    Read Also: How IPOB, other terrorist groups are funded, by NFIU

    The NFIU encouraged banks to file Suspicious Activity Reports (SARs) with them on any entity or individual suspected of making frivolous or suspicious claims.

    With regards to the public, the NFIU said it is committed to educating the public about the dangers of these deceptive transfers.  

    The advisory urges citizens to be aware of the red flags and modus operandi employed by fraudsters.  

    The public is also encouraged to scrutinize potential business opportunities before committing financial resources and to avoid basing investment decisions solely on unverified telegraphic or wire transfers.

    Going forward, the NFIU will analyze and profile both senders and recipients of these deceptive transfers.  

    Intelligence reports based on this analysis will be disseminated to relevant law enforcement agencies (LEAs) and counterparts, both domestically and internationally, fostering a collaborative effort to combat financial crime.

    The NFIU did not overlooked the role of legal professionals in this fight.  

    The advisory emphasized the need for the Nigerian Bar Association (NBA) to sensitize its members on the importance of verifying and authenticating client documents before taking action. 

    Law firms are urged to conduct thorough due diligence on clients and the documents they provide, acting as a vital line of defense against fraudulent activity.

    The Unit provided two detailed case studies to illustrate the tactics employed by fraudsters.  

    These cases highlight the use of forged documents, unrealistic sums of money, and non-existent businesses to deceive victims and financial institutions. 

    The NFIU’s analysis of numerous petitions revealed several recurring themes.  

    Many cases involved alleged transfers from prominent European financial institutions, with no corresponding requests from foreign counterparts seeking information on such transfers.  

    Additionally, many of the entities involved were newly incorporated or even fictitious, lacking legitimate business operations. 

    The NFIU also observed a pattern of forged documents, including SWIFT messages and supporting documentation.  

    In some instances, inconsistencies were found, with the same signature appearing for both investor and investee.  

    Furthermore, petitions often focused on sectors like mining and energy, likely due to the association with high capital outlays and potential justification for large sums of money.

    The NFIU’s findings reveal a complex web of deception employed by fraudsters.  

    Newly incorporated or even non-existent companies, forged documents, and unrealistic sums of money are all tools used to manipulate victims and financial institutions.   

    The NFIU’s proactive approach, combining public education, enhanced due diligence for banks, and collaboration with law enforcement agencies, demonstrates their commitment to safeguarding Nigeria’s financial system from these deceptive telegraphic transfers.

  • Governors lose more amid battle for local govt funds

    GOVERNORS are pleading with  President Muhammadu Buhari to pull the brakes on the implementation of the controversial guidelines on local government funds.

    They are advising the President to call the Nigerian Financial Intelligence Unit (NFIU) to order because, according to the governors, the guidelines are in violation of the 1999 Constitution.

    They believe NFIU is stoking mischief and seeking to cause “disaffection”, and “overheat the polity”.

    It was learnt last night that the governors may go to court if the NFIU remains adamant on its position.

    Also removed from governors’ control are statutory allocations to Houses of Assembly and the Judiciary.

    The government, in a directive issued yesterday, said it had abolished warehousing by governors of capital and recurrent budgets of the Assembly and the Judiciary.

    It said henceforth, the Judiciary and the Legislature  will be on first line charge.

    The governors are pushing for  NFIU directives on  local government funds to be rolled back.

    Nigeria Governors Forum (NGF) Chairman Abdulaziz Yari, in a  May 15, letter to the President, titled ”Re: NFIU Enforcement and Guidelines to Reduce Crime Vulnerabilities Created by Cash Withdrawal from Local Government Funds Throughout Nigeria Effective June 1st, 2019″, stated the governor’s stand.

    The letter said:  “The attention of the Nigeria Governors Forum(NGF) has been called to certain Guidelines on the above subject recently released by the Nigerian Financial Intelligence Unit and purportedly said to become operational effective 1st June 2019.

    REad also: TUC praises NFIU on N500,000 councils’ cash withdrawal

    “The NGF wishes to express its dismay and angst at the attempt to ridicule our collective integrity and show total disregard to the  Constitution of the Federal Republic of Nigeria(1999) as amended.

    “We kindly invite Mr. President to note Section  7(6) (a) and (b) of the Constitution which confers on the National Assembly and the State House of Assembly, the powers to make provisions for statutory allocation of public revenue to the local councils in the Federation and within the State respectfully.

    “Similarly, Section 162(6) of the Constitution expressly provides for the creation of the State Joint Local Government Account (SJLGA) into which shall be paid all allocations to the LGAs of the state from the Federation Account and from the government of the state.

    “Section 162(7) of the Constitution goes on to confer on the National Assembly the power to prescribe the terms and manners in which funds from  the SJLGA may be disbursed and in subsection 8, the Constitution empowers the State House of Assembly to prescribe the manner in which the amount standing to the credit of the local councils in the state shall be distributed. We respectively attach  relevant sections of the Constitution.

    “Nothing in the Nigerian Financial Intelligence Unit Act 2018 (herewith attached)  gives the NFIU the powers that it seeks to exercise in the recently released Guidelines and  in doing this, the Unit has acted in excess of its powers and in complete disregard to the constitution of the country.

    “The so-called guidelines are, in our view,  an exercise in mischief-stoking  and one calculated to cause chaos and overheat the polity.

    Continue in page 2

  • NFIU CEO praises FIRS tax reforms

    The Chief Executive Officer,  Nigeria Financial Intelligence Unit (NFIU), Modibbo Hamman Tukur, has commended the Federal Inland Revenue Service (FIRS) for revolutionising tax administration in the country. Tukur made his view known during a courtesy visit to Mr. Tunde Fowler, FIRS Chairman, in Abuja.

    According to Tukur, FIRS’ contribution to the country’s revenue through tax is almost at par with oil revenue, adding that Fowler’s exploits, in addition to what he inherited, are revolutionary. The NFIU chief also promised that tax compliance will soon become a key constituent of every criminal investigation by NFIU.

    “The FIRS has been a partner of the NFIU. Our MoU with you underscores the importance of the relationship and how we all feel for this country. In our own record, there is no government agency that recorded so much transition and changes since the advent of this democracy like the FIRS. What happened at the FIRS is a complete revolution and it fell in line with the expectation of every democratic society where the citizens are always expected to fund the existence of the community and finance existence of the government and its own welfare and security apparatus. And that is exactly what the FIRS is doing today,” said Tukur.

     

     

     

  • NFIU traces local governments’ cash to Bureaux De Change

    Local government’s funds have been traced to Bureaux de Change, it was learnt at the weekend.

    This is why the Nigerian Financial Intelligence Unit (NFIU) issued new financial guidelines, according to sources.

    It also said terrorists, kidnappers, bandits, illegal arm dealers had been exploiting  the opportunity to convert the criminal proceeds into hard currency.

    The agency also said it will restrict each of the 774 local government areas to the operation of three accounts –

    Single Revenue Account, Single Salary Account and  Single Running Cost Account  – for all payments.

    All local governments have been banned from creating additional accounts.

    Violators of the cash transaction guidelines are to face trial by the Independent Corrupt Practices and Other Related Offences Commission and the Economic and Financial Crimes Commission (EFCC).

    These details are contained in a document titled:  “NFIU enforcement  and guidelines to reduce  crime vulnerabilities created by cash withdrawal from local government funds throughout Nigeria effective 1st June, 2019.”

    Read also: NULGE, TUC back NFIU on LG finances

    The document, which was exclusively obtained by The Nation, explained the reasons behind the new guidelines.

    The document reads in part: “In the process of financial transaction analyses, the Unit detected that cash transactions from State Joint Local Government Accounts (SJLGA) pose biggest money laundering threat to the country’s system through unleashing huge amounts of cash into the streets and also stuffing Bureau de Change with cash which terrorists, kidnappers, bandits, illegal arms dealers exploit as an opportunity to convert criminal proceeds into hard currency because the cash in the foreign exchange market is well sustained.

    “The Unit received observation on illicit financial flows from the Economic Commission for Africa an agency of the African Union stating that over invoicing in form of foreign trade malpractices is the main vehicle used to launder monies from the African Continent and Nigeria contributes to the loss. Bureau de Change evidently adds heavily than any other Institution to this bad business.

    “The Unit also worked with other appropriate international bodies to reverse the black list of the Nigerian financial system by the European Union on insufficient measures to stop terrorism financing and proliferation of weapons in parts of the country and statistics of the NFIU proved beyond reasonable doubt that cash withdrawals in states hit by terrorism and other violent crimes are far higher than states without such violent attacks.

    “The Unit is conscious of the fact that  the United States (U.S.) sanctions on Hezbollah also identified connection with car selling business in Cotonou, Benin Republic, Lome, Togo and several Lebanese restaurant chains , property companies in West Africa, including orphanages, fishing companies, commodity imports, drug traffickers and arms smuggling were used to fund sustenance of terrorism in Nigeria and violence in the Middle East.

    “NFIU believes that the guidelines will re-enforce the existence of Local Government as an independent government established by the constitution at the grassroots with sovereign and elected officials directly from the people for their protection and welfare and derive revenues from similar sources as the Federal and state governments.”

    The NFIU, however, reeled out fresh measures to protect local government funds.

    The NFIU added: “It is hereby provided that the State Local Government Joint Account is only a collection account for funds to be shared directly into individual local government accounts in accordance with Section 162(7) of the  constitution of the Federal Republic of Nigeria, 1999( as amended) and not for any other transaction or purposes.

    “It is hereby ordered that with effect from 1st June, 2019, no withdrawal shall be done from the State Local Government Joint Account unless  that withdrawal is going into a particular local government account.

    “It is hereby ordered that local governments must be encouraged to have a Single Revenue Account, a Single Salary Account and a Single Running Cost Account for all payments and not to maintain additional accounts for the purpose of mitigating money laundering and helping investigations and accountability.

    “ It is hereby also provided that with effect from 1st June, 2019, no withdrawal shall be made from any local government account anywhere in the country for a cumulative amount exceeding N500,000 per day. Any other transaction must be done through cheques or electronic funds transfer.

    “It is hereby provided that any such withdrawal done in violation of all the provisions above by any financial institution or non-financial institution or their agent in whatever name or form will attract an instant penalty of 100 per cent refund of the amount withdrawn and to be effected by the Central Bank of Nigeria( CBN), EFCC, ICPC or NFIU as the case may be.

    “It is hereby provided that any public officer anywhere in the country and/ or any private citizen found undermining or violating these guidelines will  be  investigated and prosecuted under the NFIU Act 2018, the MLPA 2012 ( as amended), the EFCC Act 2004 and the ICPC Act 2000 by the Independent Corrupt Practices and Other Related Offences Commission and the Economic and Financial Crimes Commission( EFCC).”

    The agency explained that the new guidelines were not designed to be punitive.

    It said: “There is nothing in this guideline to suggest or indicate any changes to the approval limits or thresholds of elected council chairman, elected councillors, council extracts or elected governors of states as originally guaranteed or secured under any law, or financial regulations  or extant rules.

    “Nothing in these guidelines exonerates any local government or state government from their legal responsibilities and liabilities under the law.

    “These guidelines do not serve any purpose other than freeing the financial system from being stuffed with cash which criminals use to escape transparency, accountability and criminal investigation.”

  • NFIU: Governors may lose control of local government funds

    Governors may lose control of local government funds from the Federation Account, going by the new Nigerian Financial Intelligence Unit (NFIU) guidelines.

    The Joint Account System in place in most states will only exist for the receipt of allocations but not disbursement, according to the guidelines.

    Besides, each of the 774 local government areas may get N500,000 cash transactions limit per day.

    All financial transactions by local governments will be registered and monitored by the NFIU through e-payment module.

    These are some of the highlights of the new guidelines, which the NFIU will launch today in Abuja as part of steps to check mass looting of the treasury by local government officials and diversion of LGA funds by governors.

    It was learnt that the administration of President Muhammadu Buhari floated the idea to restore the financial independence of local governments.

    A top source, who spoke in confidence, said the new Director of NFIU, Mr. Modibbo Hamman-Tukur is set to roll out the comprehensive guidelines which will cover government, corporate, Bureau De Change and individual financial transactions.

    The source said: “The NFIU will on Monday launch new financial guidelines, including those bordering on the operations of the local government accounts.

    “The guidelines will limit cash transactions in the accounts of local governments and promote registered transactions by all the local governments.

    “Governors will also lack control over the utilization of these funds of local governments.

    “The Joint Account System in some states will only exist for the receipt of federal allocations meant for local governments and not disbursement.”

    Another source said: “The administration of President Muhammadu Buhari is taking his anti- corruption campaign to a higher level by also blocking sources of stealing in government at all levels, money laundering, terrorism financing and others.

    “We should expect more transparency in governance, especially at the third tier, which is the local government level.”

    President 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.

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

    The NFIU began operations on April 1.

    A statement by the NFIU through  its Acting Chief Media Analyst, Mr. Ahmed Dikko, said it will soon complete the beneficial ownership data base for politically exposed persons.

    The statement said: “”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.

    “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.

    “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.”

  • Enter NFIU

    •… And good news on two fronts: Nigeria regains Egmont Group membership; gets de-listed from money laundry-prone countries.

    It is good news that eight months after President Muhammadu Buhari signed into law the National Financial Intelligence Unit (NFIU) Act in July 2018, the NFIU is set to begin full operations, as an autonomous and independent entity, on April 1.  The NFIU Act separates the NFIU from the Economic and Financial Crimes Commission (EFCC), under which it was previously domiciled.

    With the legal excision of the NFIU from the EFCC, Nigeria has been readmitted into the Egmont Group of 156 Financial Intelligence Units, from which the country had earlier been suspended, due to NFIU’s perceived lack of institutional autonomy.

    Apparently reinvigorated by its enhanced organizational status, the NFIU has unfolded a number of new initiatives to enable it more vigorously tackle financial crimes, with special emphasis on money laundering and terrorism financing. These include the completion of an expanded data base on politically exposed persons being set up by the Federal Government; the impending issuance of new guidelines and advisories that will affect cash transaction processes at all levels of government, including bureau de change operations; as well as full implementation of the normal sanctions regime to all detected areas of vulnerabilities, within the country’s systems.

    All of these reflect the seriousness with which Nigeria, under the Buhari administration, is combating the hydra-headed menace of corruption and financial crimes in the country and raising ethical standards in both the private and public spheres. This is certainly responsible for the reported lifting by the European Union (EU) of its listing of Nigeria as a High Risk Third Country — jurisdictions perceived to be deficient in money laundering and terrorism financing controls.

    Apart from the damage to a listed country’s image, it could also have negative impact on foreign investment inflows, since such jurisdictions are perceived to be unsafe and unreliable in a globalised world, sensitive to adverse financial and security information.

    The NFIU reports, however, that Nigeria’s inclusion in the High Risk Third Country list “was officially withdrawn by the Council of Europe on 5 March 2019, while giving room for the European Commission and the European Parliament to align their positions. The Nigerian government engaged the EU authorities through the Ministry of Foreign Affairs to reach an understanding”.

    Of course, the basis for including Nigeria in the EU’s ignoble list in the first place was questionable, given the unprecedented aggressiveness with which the Nigerian state has been combating all forms of financial crimes, in the last four years particularly. This has resulted in the recovery of humongous financial and physical assets within and outside the country, the ongoing trials for corrupt enrichment of hundreds of indicted persons and the conviction and sentencing to terms of imprisonment of a number of others, despite the tortuous judicial process.

    Money laundering and other financial crimes are mostly successfully carried out with the acquiescence of foreign banks, especially in advanced western countries, which are recipients of illicit capital outflows.  But these western countries are never placed on any disreputable list. It is the  ringing hypocrisy of the so-called international order.

    Still, Nigeria must continue to vigorously pursue its current anticorruption offensive not necessarily to be in the good books of external actors, but primarily as part of its effort to drastically reduce poverty, promote accelerated socio-economic development as well as enhance her national security.

    In this regard, we welcome President Buhari’s indication that members of his new Federal Executive Council will meet the highest ethical standards. We also urge that the emergent harmonious Executive-legislative relationship at the centre be maximally utilized to strengthen and improve the administration’s anticorruption legislation in its second term.

  • 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.

    REad also: Offa robbery: Court refuses post-mortem of dead suspect

    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.

    REad also: Alleged N13b fraud: EFCC declares ex-NIA boss, wife wanted

    “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.”