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Tag: NFIU

  • ABCON Live Run Portal for BDCs, CBN, NIBSS, NFIU integration ready

    The Association of Bureaux De Change Operators of Nigeria (ABCON) will tomorrow launch its Live Run Automation Portal in Lagos. The ABCON Automation Live Run project is expected to automate all Bureaux De Change (BDCs) Operations with those of Nigeria Inter-bank Settlement System (NIBSS), Nigeria Financial Intelligence Unit (NFIU) and the Central Bank of Nigeria (CBN) to improve the level of compliance of the BDCs with set regulations.

    Speaking to financial reporters ahead of the portal launch, which will hold at the PISTISHUB, 1A Ikorodu road, Behind Mobil Filling Station, Maryland, Lagos, ABCON President, Aminu Gwadabe, said the group had secured the CBN’s no- objection approval to launch the Live Run  portal.

    The approval, he said, reaffirmed the regulator’s commitment to a transparent and viable forex market where stakeholders’ interests are protected.

    Gwadabe said the world is going digital, and BDC operators under his leadership are committed to staying ahead of the competition by deploying time-tested technology to deliver effective services to customers.

    He said the objective is to make Live Run portal enhance BDCs compliance with set regulations and promote market integrity.

    According to him, the portal will sustain transparent transactions in the BDC corridor, boost the morale of its members and ensure their continuous operations.

    The ABCON chief said the group had fully upgraded its Information Communication Technology (ICT) platforms, to achieve full digitisation of BDCs operations in line with its goal of sustaining transparent operation and prompt rendition of weekly returns to regulatory agencies.

    He said the group has also launched a website, the www.naijabdcs.com, to serve as a reliable platform for local and international investors, who will rely on it to access uniform forex rate across states, regions and markets nationally.

    According to Gwadabe, ABCON coordination journey of automation and digitisation of BDC’s processes started in 2016 with the launch of automation platform named www.abconng.org.ng.

    “The project came with three layers and stages. First layer is on online real time registration of our members with a success rate of over 4,100 BDCs registered nationwide. This layer is to enable our members conduct their membership registration from any of their location without coming physically to ABCON Secretariat.

    “The second layer bothers on automation of ABCON’s operational process, book keeping, issuance of receipt, preparation of accounts, balance sheets, ledgers and sales/purchase registers. The most important of this layer is the online real time rendition of returns to regulatory agencies.

    “Another important feature of this layer is the BDCs on boarding and integration of the Bank Verification Number (BVN) platform on the NIBSS portal for verifications and validation of clients’ BVNs, which is a most vital requirement forex sale.

    “Of special note is also the integration of our platform to immigration platform for the verifications of international passport. Already, we are in advance engagement with the Irish technology experts for the achievement of this idea. The final layer is the one that excites me a lot and has to do with a trading platform for BDCs in Nigeria. Our technical experts in India, Poland are in advance stage of completion for onward submission to the CBN,” he added.

  • ABCON, NFIU advise BDCs to hire Designated Compliance Officers

    •Hold anti-money laundering reporting training

    The Association of Bureaux De Change Operators of Nigeria (ABCON) and Nigeria Financial Intelligence Unit (NFIU) have advised Bureau de Change (BDC) operators to employ Designated Compliance Officers  to handle all compliance-related issues.

    The advise came at the end of a four-day joint nation-wide training/sensitization programme on Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) reporting for Bureaux de Change (BDC) operators by both institutions.

    The training, which has been ongoing since December 11, 2018, focused on the obligation of registering and filling reports on the NFIU goAML -Anti-Money Laundering portal. A session was held on  January 5, 2019 in Kano and another session held on January 22, 2019 in Abuja among others.

    As part of the NFIU/ABCON partnership, ABCON has taken the train-the-trainers training of the NFIU to the six geopolitical zones of the country in order to strengthen capacity for over 4,000 BDC operators nationwide.

    Speaking to financial journalists at the end of the training, ABCON President, Alhaji Aminu Gwadabe, said the anti-money laundering training is intended to familiarize BDC operators with the process of money laundering – the criminal business used to disguise the true origin and ownership of illegal cash – and the laws that make it a crime.

    Gwadabe said the policy on the recruitment of the Designated Compliance Officers by BDCs is  already being implemented by ABCON and remains part of the association’s vision to revolutionalise BDC operations in Nigeria for global competitiveness and transparency.

    He said that money laundering and terrorist financing pose not only a threat, but are enormous threats and challenges to the economy, security, and social life in Nigeria, the region and globally.

    In a statement by NFIU commending ABCON for the training, Ibrahim Pindar, said: “We wish to congratulate the ABCON on the attendance recorded on the concluded training of BDC operators on the key Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) obligation of registering and filling reports on the goAML -Anti-Money Laundering portal”.

    The NFIU advised ABCON to train BDCs regularly so as to cover AML/CFT knowledge-gap identified from most operators and also ensure that their members register on the goAML portal.

    NFIU recommended that: “Those trained by the NFIU team should be engaged by ABCON to train their members on continuous basis. Any change of Compliance Officer should promptly be reported to the NFIU. ABCON should ensure that the operators have alternates for their compliance officers for succession planning and continuity.”

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

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

     

     

     

     

  • Breaking: FG orders NFIU to freeze Onnoghen’s five accounts

    The Attorney General of the Federation (AGF) and Minister of Justice, Abubakar Malami has requested the Director, Nigerian Financial Intelligent Unit (NFIU) to freeze five bank accounts linked to the Chief Justice of Nigeria (CJN), Justice Walter Onnoghen.

    The Code of Conduct Bureau (CCB), in the charge it filed against the CJN before the Code of Conduct tribunal (CCT) for which he was to be arraigned on January 14, accused the Onnghen of failing to declare the accounts.

    In letter, written on the official letterhead paper of the AGF, but signed by Abiodun Aikomo, dated January 14, 2019 and received same date at the office of the Director of NFIU, AGF directed that the accounts be frozen pending the conclusion of the charge before the CCT.

    The letter has as its heading: “Re: Request for freezing of bank accounts subject to investigation and prosecution pursuant to Presidential Executive Order No: 6 of5th July 2018 on the Preservation of Assets Connected with Corruption.”

    Read Also: Buhari consoles Kenyans over terrorist attack

    The letter read in part, “I am directed by Mr. Abubakar Malami (SAN), the Honourable Attorney-General of the Federation and Minister of Justice to request that you, pursuant to Executive Order 6 of 2018, forthwith restrict normal banking operations on certain accounts belonging to Hon. Justice Walter Onnoghen pending final determination of the case against him at the Code of Conduct Tribunal (CCT/ABJ/1/19 – Federal Republic of Nigeria v Hon. Justice Walter Onnoghen Nkanu Walter Samuel.

    “These accounts are: Account number 5001062683 (euro) Standard Chartered Bank; 5001062683 (pounds); 0001062650 (dollar); 0010626667 (naira), and 5001062683 (naira).”

  • Buhari signs NFIU Act into law

    President Muhammadu Buhari has signed the Nigerian Financial Intelligence Unit bill (NFIU) into law.

    This was disclosed by the Senior Special Assistant to the President on National Assembly Matters (Senate), Ita Enang, while briefing State House correspondents on Wednesday.

    According to him, NFIU is the Nigerian arm of the global Financial Intelligence Units (FIUs) which was before now domiciled within the Economic and Financial Crimes Commission (EFCC) as autonomous unit and operating in Africa.

    He said the NFIU seeks to comply with international standards on combating money laundering and financing of terrorism and proliferations and checking of suspicious transactions.

     

  • ABCON, NFIU hold anti-money laundering training

    The Association of Bureaux De Change Operators of Nigeria (ABCON) and Nigeria Financial Intelligence Unit (NFIU) yesterday concluded a three-day joint training/sensitization programme on anti-money laundering and terrorist financing.

    The programme, attended by head offices/zonal secretariats staff of ABCON and key personalities from the NFIU was held at the ABCON Secretariat, in Ikeja Lagos. .

    Speaking to financial journalists at the end of the training, ABCON President, Alhaji Aminu Gwadabe, said the anti-money laundering training is intended to familiarize Bureaux de Change (BDC) operators with the process of money laundering – the criminal business used to disguise the true origin and ownership of illegal cash – and the laws that make it a crime.

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

    Gwadabe explained that the NFIU is the arm of the global financial Intelligence Unit (FIU) and the joint training is part of the efforts of the Federal Government in combating money laundering, and financing of terrorist activities within the country. The training is in line with BDCs commitment to meeting their obligations towards the Financial Action Task Force (FATF) Recommendations.

    He said the core role of the FIU is that it serves as the country’s central agency for the collection, analysis and dissemination of information regarding money laundering and the financing of terrorism and the training was an opportunity to get more acquainted with the role of NFIU and have a better understanding on how to file their transaction reports to regulatory agencies.

    He said the trainings will enable BDCs to understand how to raise the Suspicious Transaction Reports (STRs) and Currency Transaction Reports (CTRs) to know when to submit such reports.

     

    He said these reports are raised by operators on suspicious activities of individuals and are submitted to Financial Intelligence Unit.

    He said the training was also meant to increase BDCs participation and awareness on the reporting portal of NFIU which is www.goaml.nfiu.gov.ng. It is also expected to address the low level of skills in the BDCs subsector to prepare them for global competition and partnerships. The ABCON boss also alerted BDC operators on the circulation of hoarded currency in the economy.

    He said both the NFIU and BDCs used the training opportunity to discuss Central Bank of Nigeria (CBN) penalties on money laundering and terrorist financing adding that an updated code of conducts for BDCs operators in Nigeria will be unveiled later.

    The ABCON boss said the training is also backed by the Money Laundering (Prohibition) Act, 2011 (as amended) and Central Bank of Nigeria (Anti-Money Laundering and Combating the Financing of Terrorism for Banks and Other Financial Institutions in Nigeria) Regulations, 2013.

    He said that ABCON has been working assiduously to cover all aspects relating to fight against money laundering and terrorist financing one of which is capacity building for its members and engagement with key stakeholders.

    He said that ABCON is committed to raising awareness, confronting and advocating in the areas of money laundering and terrorist financing to address any noticed gap in filling their transaction reports.

    Gwadabe said that money laundering and terrorist financing pose not only a threat, but are enormous threats, enormous challenges to the economy, security, and social life in Nigeria, the region and globally.

    A joint study conducted by the Global Financial Integrity (GFI) and the African Development Bank (AfDB) showed that between 2000 and 2009, about $30.4 billion was illicitly transferred out of Africa each year. Over a longer period of 30 years, calculated from 1980, the resource drain was between $1.2 and $1.3 trillion.

    Outflows from West and Central Africa stood at (37 per cent), followed by North Africa (31 per cent) and Southern Africa (27 per cent). The illicit financial flows (IFFs) are derived from various predicate offences of money laundering.

    He said that the BDCs under ABCON do not want to be part of the groups contributing to the IFFs and therefore are doing everything within their power to ensure they comply with AML/CFT rules in the country.

  • EFCC grants NFIU autonomy

    EFCC grants NFIU autonomy

    Acting Chairman, Economic and Financial Crimes Commission (EFCC), Ibrahim Magu yesterday told the Senate that the Nigeria Financial Intelligence Unit ( NFIU)has been granted autonomy.

    Magu who appeared before the Senate Committee on Anti-Corruption and Financial Crimes to defend the performance of 2017 budget of his agency promised to submit details of recovered loots by the agency to the committee.

    He told the committee that starting from January 1, 2018, NFIU would begin operation as independent organization.

    The Egmont Group suspended Nigeria as a result of alleged interference of the EFCC in the workings of the NFIU.

    It asked the country to amend its law establishing the NFIU to make it independent or be prepared to be expelled by January 2018.

    Magu told the committee that the agency has a separate budget from that of the EFCC.

    He said, “We have allowed NFIU to go. They are operationally autonomy independent of EFCC.  They will be independent of EFCC. We have given them financial autonomy. N800 million was proposed for the agency in 2018 budget.

    Chairman of the Committee, Senator Chukwuka Utazi said that the N800 million proposed for NFIU is not enough for the body to conduct its work.

  • EFCC, Magu frustrating anti-graft war – Malami

    EFCC, Magu frustrating anti-graft war – Malami

    The Attorney General of the Federation and Minister of Justice, Abubakar Malami (SAN), on Wednesday accused the Economic and Financial Crimes Commission (EFCC) and its Acting Chairman, Ibrahim Magu, of frustrating the Federal Government’s anti-graft war.

    Malami, in a statement issued in Abuja, alleged that Magu and the EFCC leadership have “manipulated and misused intelligence to the detriment of the fight against corruption and financial crimes in Nigeria.”

    He also accused them of working to prevent the lifting of the country’s suspension by the global financial intelligence gathering body – Egmont Group of Financial Intelligence Units (Egmont Group) and ensure the country’s formal expulsion.

    The Egmont Group, currently made up of 156 Financial Intelligence Units (FIUs), representing 156 countries, serves as a platform for exchange of expertise and financial intelligence to combat money laundering and terrorist financing and functions as the operational arm of the international anti-money laundering and counter financing of terrorism (AML/CFT) apparatus.

    Nigeria, represented in the group by the Nigerian Financial Intelligence Unit (NFIU), was suspended on June 1, 2007 because the NFIU lacks independence and was subject to the control of the EFCC via the provision of the Section 1(2)(c) of the EFCC Act.

    The group demanded autonomy for NFIU as a condition for the country’s readmission, failing which it would be expelled.

    Since the nation’s suspension, Malami and Magu have been unable to agree on how to meet the condition set by the Egmont Group for the country’s readmission.

    While the AGF wants the creation of an autonomous NFIU, detached from the EFCC, and has send a Bill to the National Assembly to that effect, Magu wants NFIU to remain part of EFCC, but with mere re-organisation of its operations.

    In the statement issued for the AGF by his spokesman, Comrade Salihu Othman Isah, Malami frowned at Magu’s hard stance on the issue and noted that the uncooperative attitude of EFCC’s leadership could encourage the Egmont Group to carry out its threat to expel the country.

    Malami regretted that Magu appeared not to understand the implication of Nigeria’s expulsion from the group on government’s efforts to combat corruption, terrorism, money laundering and other related vices.

    The AGF, who insisted on ensuring the separation of NFIU from the EFCC, praised the Senate for passing the Bill for an independent NFIU and urged the House of Representatives to urgently pass similar Bill currently pending before it.

    The statement reads: “The EFCC is now in a state of paranoia, as it dreads the effort of the government to have an independent NFIU, which it has stood against stoically since 2006.

    “As it presently stands, the NFIU staff are all deployed by the EFCC to serve in the interest of whoever is its current Chairman. This has to stop if it must conform to the new thinking and global best practice. Nigeria cannot be an island of its own. It cannot fight corruption in isolation.

    “The threat of expulsion from the Egmont Group calls for a thorough review of the NFIU and the manner in which the EFCC leadership has manipulated and misused intelligence to the detriment of the fight against corruption and financial crime in Nigeria.

    “To achieve the desired goal, NFIU needs to stand alone as an agency with full complements of power to recruit its staff and an annual budgetary allocation guaranteed for its operations.

    “Its independence must be ascertained in the new law to set up Nigerian Financial Intelligence Agency (NFIA) to enable it carry out its mandate, which shall include responsibilities for receiving, requesting, analysing and disseminating financial intelligence reports on money laundering, terrorist financing and other relevant information to law enforcement, security and intelligence agencies, and other relevant authorities.”

     

  • NFIU: Before the hammer falls

    NFIU: Before the hammer falls

    The Nigerian Financial Intelligence Unit (NFIU) is in a race against time. On July 7, it was suspended as a member of global Financial Intelligence Units (FIUs), the Egmont Group. A threat of expulsion is hanging over its head, if, by January, the government fails to grant NFIU autonomy from the Economic and Financial Crimes Commission (EFCC). The Senate has pledged to fast-track the passage of a law for this. But, won’t this weaken the EFCC? Or will an independent NFIU complement the war against graft, money laundering and terrorism financing? ROBERT EGBE writes.

    AT the end of its five-day 24th Plenary in Macao, China, on July 7, the Egmont Group of Financial Intelligence
    Units (FIUs) suspended the Nigerian Financial Intelligence Unit (NFIU).

    The group, consisting of 154 FIUs, accused the NFIU of reluctance to curb information leakage. It queried the NFIUfor being part of the Economic and Financial Crimes Commission (EFCC).

    Its demands are part of Recommendation 29 of the international standards set by the Financial Action Task Force (FATF) which Nigeria aspires to join.

    In a statement, the group said: “The Heads of FIU made a decision, by consensus, to suspend the membership status of the NFIU, Nigeria, following repeated failures on the part of the FIU to address concerns regarding the protection of confidential information, specifically related to the status of suspicious transaction report (STR) details and information derived from international exchanges, as well as concerns on the legal basis and clarity of the NFIU’s independence from the Economic and Financial Crimes Commission (EFCC).

    “The measure will remain in force until immediate corrective actions are implemented. The NFIU, Nigeria is now excluded from all Egmont Group events and activities.

    “The Egmont Group expressed its hope that the Nigerian authorities will address these concerns to enable the Egmont Group to lift the suspension as soon as possible.”

     

    The EFCC-NFIU- Egmont Group relationship

     

    The NFIU was established in June, 2004 as the Nigerian arm of the global FIUs domiciled within the EFCC as an autonomous unit and operating in the African region. This followed the international community’s perception of Nigeria as a pariah state because of high level of money laundering and advance fee fraud associated.

    The country had also been blacklisted as a non-cooperative country having limited legal and regulatory framework to tackle money laundering and financing of terrorism by the FATF.

    The NFIU is the country’s central agency for receiving, analysing and disseminating information regarding money laundering and the financing of terrorism. It draws its responsibilities directly from the 40+9 Special Recommendations of the FATF, the global coordinating body for Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) efforts.

    It draws its powers from the EFCC (Establishment) Act of 2004 and the Money Laundering (Prohibition) Act of 2011 as Amended in 2012.

    The laws require financial institutions and designated non-financial institutions to submit records of financial transactions to the NFIU.

    The NFIU’s establishment is a precondition for Nigeria’s removal from FATF list of Non-Cooperative Countries and Territories (NCCTs).

     

    Consequences of suspension, expulsion

     

    The Egmont Group is the highest inter-governmental association of intelligence agencies in the world with 154 FIUs. It provides a platform for sharing criminal intelligence and financial information bordering on money laundering, terrorism financing, proliferation of arms, corruption, financial crimes, economic crimes and similar offences geared towards the support of local and international investigations, prosecutions and assets recovery.

    NFIU’s suspension means it will have limited access to such intelligence and this will hamper its bid to request for assistance to investigate cross-border crimes of money laundering and terrorism financing. It will also stifle the country’s ability to recover stolen funds stashed overseas as well as affect the worldwide rating of Nigerian financial institutions by restricting their access to global transactions.

    According to the spokesman of the Senate, Senator Sabi Abdullahi, “An expulsion might also, under certain conditions, attract the imposition of financial transaction limit, including the withdrawal by some countries of scholarships to students of Nigerian origin.”

     

    History of non-compliance

     

    Nigeria seems to have a history of “repeated failures” of compliance as mentioned by Egmont Group.

    Criminology Professor and former Director-General of the ECOWAS Inter-Governmental Action Group against Money Laundering (GIABA) Abdullahi Shehu made similar observations last November.

    In an article entitled: “Anti-Money Laundering and Counter Financing of Terrorism (ML/CFT) in Nigeria – A call for rescue”, Shehu noted that Nigeria could have been the first African country to attain a Financial Action Task Force (FATF) membership, but for improperly coordinated and sustained efforts.

    He said: “As a result of non-response of Nigeria to engage, the FATF was left with no alternative than to blacklist Nigeria among countries considered to be Non-Cooperative Countries and Territories (NCCTs) in 2001.

    “Subjecting Nigeria to this process meant that Nigeria was perceived as a risky jurisdiction for business and all financial transactions with Nigerian banks were subjected to extra ordinary scrutiny – and embarrassment.

    “It took Nigeria six years of engagement to be removed from the NCCTs process in June 2006.”

     

    The NFIU autonomy question

    The NFIU states in its website that it is “domiciled within the EFCC as an autonomous unit”.

    But the Egmont Group does not think so. Neither does the Senate.

    Last Wednesday, its spokesperson announced that it had resolved to pass a legislation that would make the unit independent of the EFCC.

    “Our worry is that Nigeria was suspended from the Egmont Group basically because NFIU has not been granted autonomy and is still domiciled in EFCC. The essence of it is that in sharing intelligence, there are protocols that must be respected. The Senate is committed to ensuring that the right thing is always done. We must be proactive. If you strengthen the NFIU you are strengthening other intelligence units in the country,” Abdullahi said.

    Hours later, EFCC Acting Chairman Ibrahim Magu inaugurated a committee to reposition the NFIU as well as address the concerns of the Egmont Group.

    The Senate’s Bill scaled first reading last Thursday.

     

    What is in a location?

     

    What does it matter whether the NFIU is located in the EFCC or not? Will the NFIU’s autonomy make the EFCC weaker?

    Not really, according to Shehu.

    In his article, Shehu said: “I have come to realise that the problem with the NFIU is not with its operational independence as most people would claim, but with a misplaced notion of who is in charge of what and a misperception of public office as a personal and life time vocation.

    “Perhaps the most credible arguments in the controversy for a review of status and location of the NFIU are that: (1) the EFCC being a law enforcement agency cannot at the same time be the FIU of Nigeria as contained in Section 1(2) of the EFCC Establishment Act; and (2) the NFIU has not been administered professionally to make it truly a centralized authority for all law enforcement agencies to derive financial intelligence from it, rather, it is perceived as the property of the EFCC.

    “Indeed, we must acknowledge the foresight and good leadership of the EFCC in establishing and strengthening the NFIU, but since we must conform to acceptable standards, what is required is either to enact a standalone law establishing the FIU according to the Egmont standard, or amend the EFCC Act to say the FIU is located within the EFCC as it has to be located somewhere anyway.

    “There is no proof that the FIU can be better in any other location other than where it is at the moment. After, all what is in a location? It is instructive to note that what is required is the operational autonomy and financial independence of the FIU and its ability to serve all law enforcement agencies.”

    Shehu’s view does not contradict the Egmont’s Group’s recommendation of four models of Financial Intelligence Units: judicial, law enforcement, administrative, and hybrid. The EFCC would fall under either the law enforcement or hybrid models.

    The law enforcement model involves implementing anti-money laundering measures alongside already-existing law enforcement systems, supporting the efforts of multiple law enforcement or judicial authorities with concurrent or sometimes competing jurisdictional authority to investigate money laundering.

    The hybrid model serves as a disclosure intermediary and a link to both judicial and law enforcement authorities. It combines elements of at least two of the FIU models.

    Shehu, who has been appointed to head the EFCC committee to reposition the NFIU, pledged last Wednesday to strengthen the anti-graft war.

    “We see this as a call to service and we assure you that we will ensure that we carry out this task judiciously in order to reposition the NFIU, and ensure that it is autonomous, as this will further strengthen the anti-corruption fight”, he said.

     

    A ploy to weaken EFCC?

     

    The alternative view is that the Senate’s plan to separate the NFIU from the EFCC is part of a plot by aggrieved senators to get back at Magu and weaken the anti-graft agency, following the Presidency’s insistence on keeping Magu in office, despite his non-clearance by lawmakers.

    Holders of this view will refer to the Senate’s statement last Wednesday, holding Magu partly responsible for Nigeria’s suspension from the group, because of his alleged interference in the operations and staffing of the NFIU.

    Senator Abdullahi, however, dispelled the notions that the Red Chamber’s decision to decouple the NFIU from the EFCC is an extension of the imbroglio with Magu.

    He said: “Several agencies are involved in fighting corruption and this anti-corruption fight has been hampered by the refusal to share intelligence.

    “We cannot succeed if we continue to individualise some of these national assignments. The institution is bigger than any person.”

    He urged Nigerians to commend the Senate for taking “a bold step” to ensure that Nigeria’s financial system was not blacklisted.

     

    Lawyers back NFIU autonomy

     

    Dr. Paul Ananaba (SAN) and Seyi Sowemimo have praised the senators for rising to the occasion.

    Ananaba faulted suggestions that the lawmakers’ move was borne out of an evil intention towards Magu or the EFCC.

    He said: “I agree that it would be good to have autonomy for the Nigerian Financial Intelligence Unit because even when you look at the EFCC, there are still accusations that it is lopsided with mostly opposition figures being prosecuted and all that.

    “I have no problem with the Senate’s move. I do not agree with the argument that it is an attempt to whittle down the powers of the EFCC, because this will now be a more specialised agency on financial intelligence.

    “I don’t think it will whittle down EFCC’s powers in any way, each agency will have its own powers. For instance, why was the EFCC created when we already had the police?”

    He gave his endorsement to laws that will help to reduce corruption to the barest minimum.

    Ananaba said: “I have no problems with complying with international standards, you can’t also fight corruption without the cooperation of the international community.

    “Most of the loot are sent out and if you don’t work with the international community in accordance with global standards, then you will find it difficult to get the collaboration you need to repatriate funds and all that and to trace corrupt funds that looters move from one border to the other.

    “So, nothing is lost with the separation of the NFIU from the EFCC, what is needed is that the lawmakers should go to work and ensure that nothing is lost with the EFCC’s powers.”

    Sowemimo noted that though the lawmakers had their differences with Magu in the past, their swift response to the Egmont Group’s threat was commendable.

    He said: “Now that the Senators appreciate the consequences of the sanctions, it is nice that they are taking measures to redress the situation, it would have been worse if they were aware of this sanctions and were not doing enough to avert it.

    “Now that they are moving expeditiously towards redressing it, I am quite happy that this is happening, because they could have said they were going on recess and it is when they return that they would do it.

    “But since it is something that is going to affect our economic fortunes, it’s great that they are dealing with it, whatever may have been their initial motives.’’

     

  • Senate begins move to separate NFIU from EFCC

    Senate begins move to separate NFIU from EFCC

    •How false petition led to Nigeria’s suspension

    Senators yesterday began moves to make the Nigerian Financial Intelligence Unit (NFIU) independent of the Economic and Financial Crimes Comission (EFCC).

    The Senate Committee on EFCC is to articulate a bill within four weeks for the immediate autonomy of NFIU, which is domiciled in the EFCC.

    The decision was taken after a debate on Nigeria’s suspension from the Egmont Group of Financial Intelligence Units.

    The Senate blamed Attorney General and Minister of Justice Abubakar Malami, Interior Minister Abdulrahman Danbazzau and EFCC Acting Chair Ibrahim Magu for Nigeria’s suspension.

    The Egmont Group of Financial Intelligence Units provides the backbone for monitoring international money laundering activities across the world.

    The Senate also said it was ready to do everything necessary to reverse Nigeria’s suspension moreso when “the group warned that if Nigeria fails to comply with the group’s demands for a legal framework granting autonomy to the NFIU by January 2018, the country will be expelled from the global body”.

    The Chairman, Senate Committee on Financial Crimes, Senator Chukwuka Utazi (Enugu North), moved a motion on “dire implications of the suspension of Nigeria from the Egmont Group of Financial Intelligence Units”.

    The Senate said it was concerned that in view of the “non-cooperating stance of the executive branch”, the legislative branch would have to urgently leverage its institutional mechanism to ensure that Nigeria’s suspension from the EGMONT Group was reversed.

    The upper chamber noted that it was all the more urgent, considering the December deadline given to the country to comply to avoid expulsion. Besides, the Financial Action Task Force (FATF) High Level Mission to Nigeria plans a visit to the country in November 2017 to appraise Nigeria’s preparedness to be granted the status of observer and later membership of the FATF, especially with regard to the needed co-ordination by the three line ministries of Justice, Finance and Interior.

    It noted that the granting of the requisite autonomy to the NFIU has been “aggressively and progressively resisted by the EFCC.”

    The Senate added that its Committee on EFCC, in order to provide the needed autonomy for the NFIU to meet its primary mandate, technically and logistically, considered the NFIU’s budget separately from EFCC’s in the 2017 budget “but for the non-provision of budget sub-heads by the Budget Office and the reluctance of the EFCC to do the administrative necessity required”.

    Adopting the report, the Senate said it was informed that if expelled, “the United Nations Convention Against Corruption (UNCAC) Implementation Reviewing Group will be served a notice against Nigeria, and most countries, including the United States, the UK, Germany, Switzerland, etc., would alert their financial institutions and services through the issuance of advisories such as the Financial Criminal Enforcement Network Advisory and Foreign Assets and Cash Directive, to warn them to apply extra care and diligence in transacting with Nigeria and Nigerians.”

    The Senate resolved to:

    *pass a law creating a substantive and autonomous Nigeria Financial Intelligence Unit, NFIU, and make the Unit legally and operationally autonomous with powers for the employment, reward, training, promotion and discipline of its workforce independently;

    *empower the NFIU to, in line with international best practices, exchange and relate with all countries on issues affecting its mandate at the bilateral and multi-lateral levels;

    *urge the three Line ministries of Justice, Finance and Interior to do all within their powers to ensure that Nigeria’s suspension is immediately reversed and ensure that all conditions specified by the EGMONT Group are met to re-admit and improve Nigeria’s standing within the Group while increasing their levels of cooperation and co-ordination to ensure that Nigeria achieves membership of FATE; and

    “urge the Executive branch to include in any supplementary budget estimate that may be presented to the National Assembly before the end of the year a separate budget for the NFIU in view of the need to lift the suspension of Nigeria as soon as possible.

    The Senate also noted  ”the meddlesomeness of the Acting Chairman of the EFCC in the affairs of the NFIU by his interference in the operations and staffing of the Unit leading to the departure of many competent hands; and divulging confidential information concerning the activities of the EGMONT group.”

    Senate President Bukola Saraki said the Senate would work swiftly to ensure that the suspension was lifted.

    Saraki said: “Clearly, this suspension is a setback in our fight against corruption and, as such, we must move swiftly because we cannot afford to be cut off from the EGMONT Group. We must move swiftly and ensure that this suspension is lifted. And one of the things that we need to do is to ensure that we pass this bill as soon as possible to give independence to NFIU and any of the other activities that must have led to this must be stopped. And the Committee on Anti-Corruption should carry out their oversight to ensure that the sooner we get the suspension lifted, the better for our image and the fight against corruption.”

  • Magu raises panel to make NFIU autonomous

    Magu raises panel to make NFIU autonomous

    The Acting chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ibrahim Magu yesterday inaugurated a committee to reposition the Nigerian Financial Intelligence Unit (NFIU).

    He asked the panel to coordinate the effective process of amendment of Section 1(2)(c) of the EFCC Act to expressly reflect NFIU as an autonomous unit under the EFCC with a one month deadline.

    Head of Media and Publicity of rhe EFCC Wilson Uwujaren, said the committee’s members were drawn from law enforcement, financial and regulatory agencies.

    He said: “The committee is chaired by Dr. Abdullahi Shehu, a former Director-General of the Inter-Governmental Action Against Money Laundering in West Africa, GIABA.

    “Other members of the committee are Mr. Chidi Chukwuka from the Nigeria Deposit Insurance Corporation (NDIC); Mr. Bamanga Bello, Head of the Special Control Unit against Money Laundering (SCUML); Hajia Jamila Yusuf of the Central Bank of Nigeria;  Mr. Udofia Akpan Obot, a former deputy director, CBN , while Mrs. Joke Liman of the EFCC is to serve as secretary

    The inauguration is coming on the heels of the recent suspension of the NFIU from membership of the Egmont Group of Financial Intelligence Units.

    Magu charged the committee to take a holistic look at the mandate and operations of the NFIU with a view to coming up with proposals to reposition the agency for greater efficiency.

    The statement said: “While noting that members of the committee are persons with rich experience in Anti-Money Laundering and Combating Financing of Terrorism, Magu reminded them that membership of the Egmont Group was critical to Nigeria’s effort to tackle money laundering, and monitoring of financial flows within and outside the country.

    He charged the Committee to among others, address the concern of the Egmont Group, by providing the necessary frameworks needed “to coordinate the effective process of amendment of Section 1(2)(c) of the EFCC Act to expressly reflect NFIU as an autonomous unit under EFCC so as to provide legal basis or clarity on its operational independence from the EFCC.

    “Make recommendations with respect to the funding of the NFIU’s operations. Develop career path for the staff of the NFIU.

    Responding on behalf of the members of the Committee, Shehu expressed delight at the opportunity given to them to serve the country.

    He added: “We see this as a call to service and we assure you that we will ensure that we carry out this task judiciously in order to reposition the NFIU, and ensure that it is autonomous as this will further strengthen the anti-corruption fight”, he said.

    “Nigeria was the first country to enact an anti- money laundering law in Africa and also the first to set up a Financial Intelligence Unit, an agency that has mentored other FIUs in the West Africa sub-region.

    He praised Nigeria’s role in setting up and nurturing GIABA to global reckoning. Shehu however acknowledged that there were challenges in the country’s anti- money laundering framework which must be tackled for the country to fully achieve the objective of fighting corruption and money laundering.