GIABA To Appraise Nigeria For Terrorism Financing, Money Laundering

The Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) on Friday announced plans for Nigeria to be evaluated for money laundering and terrorism financing in 2017. GIABA is a specialised institution of ECOWAS that is responsible for strengthening the capacity of member states toward prevention and control of money laundering and terrorism financing in the region.

  

The GIABA Representative in Nigeria, Mr Timothy Melaye,made the disclosure when he paid an advocacy visit to the Lagos office of the National Agency for the Prohibition of Trafficking in Persons (NAPTIP). 

  

Melaye said the visit was to forge possible collaboration between GIABA and NAPTIP, especially in building capacity of the agency’s personnel ahead of next year’s Mutual Evaluation of Nigeria. “The Financial Action Task Force (FATF), an independent inter-governmental global body, has concluded plans to carry out a Mutual Evaluation on money laundering and terrorism financing in Nigeria in 2017. “Mutual Evaluation is a Peer Review Mechanism whereby countries are rated on all issues that borders on money laundering and terrorism financing. “We are currently on advocacy visits to the relevant agencies so that Nigeria should prepare to avoid being blacklisted again as a country with high risk of money laundering and terrorism financing,’’ he said. The representative said that it was imperative for NAPTIP and other relevant agencies to redouble their efforts in fighting trafficking in persons and other related crimes.

Melaye assured NAPTIP of his organisation’s readiness to work with it in making sure that next year’s Mutual Evaluation on Nigeria would be encouraging to FATF. He also said that GIABA would henceforth include NAPTIP in its capacity building programmes within and outside the country. The NAPTIP’s Lagos office Zonal Commander, Mr Joseph Famakin, who commended the representative for the visit, said that the collaboration was a welcome development.

Famakin, however, urged GIABA not to restrict the advocacy visit to NAPTIP’s Lagos office but to also visit its Headquarters in Abuja. He said that his organisation had come up with new laws aimed at enhancing the organisation’s responsibilities as well as expanding its operations to financial investigations. “NAPTIP currently has enough instruments for not just to bark but bite. “We strongly believe that there are so many things that this agency and GIABA can do together to ensure that Nigeria’s ratings becomes encouraging next year,’’ he said.

Culled from: Vanguard Newspaper

Terrorist Financing: France Targets Prepaid Debit Cards In Fight Against Terrorism

French Finance Minister Michel has announced new curbs on the use of prepaid credit and debit cards in the wake of the November 13 Paris attacks in France.

Fallout of BNP Paribas' Guilty Plea and Fine, United States Justice Dept May Probe Nigerian Banks over Terror Funding

THE United States (U.S.) Justice Department has put some Nigerian banks under the searchlight in the wake of growing terrorism in the country.

Specifically, the banks are being investigated to establish their links, if any, with funding of the various terror cells across the continent, particularly Boko Haram.

The development was sequel to BNP Paribas’ guilty plea and agreement to pay nearly $9 billion for violating U.S. sanctions, which has now triggered fresh enthusiasm on the U.S. Justice Department to also extend its investigations to Africa, especially among big banks on the continent with strong international links.

  Two other major French banks- Credit Agricole and Societe Generale, Germany’s Deutsche Bank AG, and Citigroup Inc’s Banamex unit in Mexico are among those being investigated for possible money laundering or sanctions violations, according to reliable industry sources.

  The Justice Department and other U.S. authorities, including the Manhattan District Attorney, are probing Credit Agricole and Societe Generale for potentially violating U.S. economic sanctions imposed against Iran, Cuba and Sudan, one of the sources said.

  Specifically, in the case of Nigeria, there had been widespread suspicion that a few banks in the country may have compromised in helping to move funds for members of the Boko Haram sect.

  There were fears recently that Nigeria may be blacklisted by international anti-money laundering watchdogs based in the U.S., over its inability to track the source of funds of the Boko Haram sect and curb terrorism financing in general.

  Signals from Financial Action Task Force (FATF), the global standard setter for measures to combat money laundering, terrorist and proliferation financing, indicated that despite the earlier warnings to Nigeria on its non-compliance level, the country is yet to take any concrete step to stem the rising spate of financial crimes including terrorism financing, money laundering and corruption.

  In its recent report, dated February 11, 2014, the FATF listed Nigeria among the countries that have not made significant progress in addressing the lacunas in their Anti-Money Laundering and Combating Terrorism Financing (AML/CFT) regimes. The agency advised the international financial community on the potential risks in the country.

  Recent events, especially the activities of Boko Haram and startling revelations from various probes by the National Assembly, are putting Nigeria under global focus and scrutiny.

  It will be recalled that on June 23, 2006, FATF decided to remove Nigeria from its list of Non-Cooperative Countries and Territories (NCCTs).   Since July 2001, Nigeria has been on this shame list. The cost to the economy is incalculable: inflow/outflow of transactions to Nigeria has around it a cautionary flag to the rest of the world and numerous Nigerians operating outside the country have had their financial dealings cancelled/ monitored.

  Similarly, Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), in its 2011 yearly report, clearly showed that the sources of money laundering, corruption, tax fraud, narcotics, trafficking and capital market related crimes were identified as the major challenges facing Nigeria.

  The data from GIABA, an institution of the Economic Community of West African States (ECOWAS) responsible for facilitating the adoption and implementation of AML/CFT in West Africa, stated that the National Drug Law Enforcement Agency (NDLEA) seized 195, 283, 917 kilogrammes of various types of illicit drugs, mostly cannabis valued at over N140 million. The country also generated 8,725, 213 Currency Transaction Reports (CTRs), 2,031 Suspicious Transaction Reports (STRs) and 83 confirmed cases of money laundering in the reviewed period.

Source, full article:
Guardian Newspaper