Four Africans arrested in Japan for money-laundering

Police in Japan acting on an FBI request have arrested six people -- three Nigerians, one Ghanaian and two Japanese nationals -- in a money-laundering case, officials said Thursday.

The six are suspected of having received funds that were the proceeds of a crime, wired to them from a New York Citibank account in the name of the National Bank of Ethiopia, Japan's Metropolitan Police Department said.

Police said they had arrested a Nigerian citizen, Nyeche Obeneme, 36, living in Saitama, north of Tokyo, and two other Nigerian men as well as a Ghanaian man, and a Japanese man and woman.

Police suspect the six between them received up to 200 million yen (2.4 million dollars) in October 2008, allowing the money to be wired into their bank accounts in return for commissions.

The money is believed to be part of roughly 33 million dollars that were wired to accounts in seven countries, also including China, South Korea and Australia, Kyodo News reported.

"With the help of the FBI, we made the arrests on alleged violations of the organised crime law," the police spokesman said, referring to the US Federal Bureau of Investigation.

Source: Daily Notion

NIGERIA: CBN Ordered Account Update Ends Today

The one-month extension given by the Central Bank of Nigeria (CBN) to nation's banks and customers of other financial institutions to update their account information ends today.

Specifically, the apex bank had on 29th November, 2010 directed that all customers of banks and financial institutions in Nigeria should update their account information by 31st December, 2010 failing which the affected accounts would be suspended with effect from 1st January, 2010.

However due to series of complaints from customers, CBN before the expiration of the deadline, extended the time till January 31, 2010.

The account update, CBN said was part of the Customer Due Diligence (CDD) which involves Know Your Customer (KYC) compliance which is accepted worldwide as a tool for the fight against money laundering and terrorism financing as well as protecting the interest of customers. All banks are required to ensure compliance.

A cross session of bank officials who spoke to Daily Trust at the weekend described the exercise as successful.

An official of United Bank for Africa (UBA) said in the last one week, the banking halls of the banks most especially in Lagos area have been very busy due to large turnout of customers who were trooping in to update their accounts in meeting the CBN's deadline.

He said the bank had also embarked on aggressive media campaign which has helped it in that direction.

Spring Bank's head of communication, Igwe U. Igwe said the turnout has been impressive so far and that today being the last day may also witnessed a large turnout.

He said one interesting thing about the exercise was that some Nigerians living abroad are calling, or sending mails to upgrade their accounts adding that the awareness created by the bank has helped.

A statement by the CBN said: "Having reviewed the progress made so far and the response of the banking public, the CBN has extended the deadline for the information update of bank accounts from December 31, 2010 to January 31, 2011."

The CBN had also threatened that customers who failed to comply with the directive would have their accounts suspended.

The account update is part of the Customer Due Diligence (CDD) which involves Know Your Customer (KYC) compliance which is accepted worldwide as a tool for the fight against money laundering and terrorism financing as well as protecting the interest of customers.

Our reporter observed Friday, last week that many bank account holders were making last minute efforts to update their accounts.

Source: All Africa

EFCC warns governors against money laundering

Chairman of the Economic and Financial Crimes Commission (EFCC), Farida Waziri, has sounded a warning to all new and returning governors to steer clear of acts and intents geared towards money laundering and other economic crimes.

Waziri handed down the warning at a symposium for “New and Returning Governors of the Federal Republic of Nigeria” held at the State House, Presidential Villa, Abuja on Friday.

The EFCC boss reminded the forum that maintenance of foreign accounts is still constitutionally prohibited, stressing that the anti-graft agency is on the trail of looted funds kept in offshore accounts.

According to her, “we cannot continue to enrich the economies of other countries at our own expense. We must bring the money back. We cannot launder money to those economies and turn back to seek economic aid from them.

“Launderers must be reminded that once stolen assets are identified, they will be frozen. Even though it is difficult to get them back, you cannot enjoy them either,” she pointed out.

Waziri maintained that the survival of Nigeria’s democracy depends on how the people approach governance and with it, the fight against corruption.

She underscored the importance of good governance saying the EFCC will always partner with any governor that demonstrates visible commitments to it.

“It is important to state at this stage that the EFCC is your partner in ensuring good governance. The EFCC is not a monster looking for trouble or creating problem for governors. However, it has work to do. Where good governance fails, the EFCC must intervene. That is where the partnership parts ways”, she said.

Waziri lamented that over 70 percent of corrupt practices in Nigeria take place in the public sector and tasked the governors to not only expose chairmen of local governments found wanting in the discharge of their functions but to always review their performance in office by asking themselves questions.

Meanwhile, operatives of the commission on Friday stormed the premises of The Market Magazine, publishers of ***Blueprint***, arresting nine management staff and taking away office equipment and machines belonging to the organisation.

The operatives who besieged the premises in a white coloured 18-seater Toyota Hiace bus at No 26, Mississippi Street, Maitama at about 11am launched an aggressive search of the offices.

The anti-graft agency in a statement yesterday explained that it raided the premises to execute a search warrant obtained over a case of fraud and forgery of government documents being investigated by the commission.

According to the statement, the EFCC officials were detailed to search the company’s premises following intelligence reports that more than 20 companies operating from the same premises were being used to defraud government agencies.

According to the report, some of the companies being used to defraud government and individuals include: Emm-why-Gee Nig Ltd, Abucco Ventures, Vibracall Ltd, Digital Inspirations Ltd, and Hamura Nig Ltd.

Others are Cavalet Publications Ltd, Catnose Ltd, Juma Mulitlinks Ltd, Banjula Integrated Ltd, Component Consult, Candy Land Resort Ltd, Bhaize Integrated Services Ltd, A.Y Nig Ltd, Bifocal Communications Ltd, among others.

The statement further said three of the listed companies were allegedly used to defraud a Federal Government agency of over N66 million in January even though it did not give details of the crime.

“During the search, computers and documents were retrieved from the premises for forensic analysis and further investigations while some officials of the companies were also picked for interrogation.

“Members of the public especially the media are therefore assured that the raid is purely in connection to a criminal investigation and so has nothing to do with gagging of the press as being insinuated.

“The press remains a formidable partner of the EFCC and indeed government in the effort to rid our nation of all forms of economic and financial crimes,” the statement added.

Source: Daily Independent

US report salutes Maghreb counter-terror efforts

Al-Qaeda in the Islamic Maghreb (AQIM) represents the main terrorist threat in the Greater Sahara and Sahel region, according to a terrorism report recently released by the US State Department.

The Middle East and North Africa overview in the 2009 Country Reports on Terrorism, released to the public on August 5th, found that AQIM was mainly active out of the north-eastern part of Algeria and northern Mali. Al-Qaeda members moved across the Arab Maghreb and Sahel region – especially between Mali, Niger, and Mauritania to mount attacks.

Ransoms for the release of kidnapped foreign hostages provided AQIM with its main source of funding, the report noted. Although governments in the region have tried in the past to confront AQIM, they still need foreign support in building military and law enforcement capabilities, the analysis said.

AQIM operations along "under-governed borders", however, have "posed a challenge" for state responses, Ambassador-at-Large Daniel Benjamin, the co-ordinator for counter-terrorism at the State Department, explained at an August 5th press conference in Washington.

Benjamin called on states in the Arab Maghreb region and around the world to adopt a "no-concession policy" with kidnappers so that their funding flow can be stopped.

Operations by Algerian security services and public rejection of terrorism "have reduced al-Qaeda in the Islamic Maghreb (AQIM)'s overall effectiveness during the past two years", the new report said.

"Algerian security forces have done a very good job [in defending] Algeria proper and as a result, al-Qaeda in the Islamic Maghreb is pushing to the south in the Sahel: Mauritania, Niger and Mali… increasing the number of attacks there," National Counterterrorism Centre deputy director Russ Travers pointed out at the press conference.

The report noted a decrease in the number of high-profile terrorist attacks in Algeria in 2009, although low-level terrorist activities continued in rural areas in the form of roadside bombs and ambushes laid for security forces.

The document stressed that Algeria's Salafist Group for Preaching and Combat (GSPC), which now calls itself al-Qaeda in the Islamic Maghreb (AQIM), does not have any popular support.

As a result of declining numbers, AQIM has been hard at work trying to win the media war, as witnessed by the organisation's ability to conduct an attack and claim responsibility via communiqué within hours.

The report stressed the need for Algerian security forces to adapt continuously to AQIM's changing tactics.

Algeria's efforts to confront terrorist activities were also noted by the report. Algiers recently hosted a meeting of military chiefs of staff from Mali, Libya, Mauritania, and Niger to develop a regional counterterrorism strategy and establish a regional command centre in Tamanrasset. In addition, the Algerian government instituted a programme to hire 100,000 new police and gendarmes, reinforce the borders, augment security at airports, and increase the overall security presence in major cities.

AQIM poses the main terrorist threat to Mauritania, analysts found. The report reviewed a number of attacks that targeted foreign interests and nationals in 2009, the most prominent of which was the suicide attack near the headquarters of the French Embassy in Nouakchott.

Regarding Morocco, the document stated that the government pursued a comprehensive counterterrorism approach that emphasised neutralising existing terrorist cells through traditional intelligence work, pre-emptive security measures and collaboration with regional and international partners.

Building on popular rejection of terrorism, the Moroccan government has worked to reduce extremism, dissuade individuals from becoming radicalised and promote moderate and peaceful religious viewpoints.

Morocco also addressed terrorist financing and money laundering operations through the Financial Intelligence Unit created in April 2009.

Moroccan authorities were able to dismantle a number of terrorist cells. However, the report added, the mere presence of these groups stresses the need to continue to be cautious and vigilant.

The report noted that the Government of Tunisia placed a high priority on combating extremism and terrorism. In addition to using security and law enforcement measures, the Tunisian government also used social and economic programmes, including health care and public education, to ameliorate the conditions that terrorists exploit for recruitment and propaganda purposes.

As to Libya, the US Department of State report noted that the Libyan government continued to co-operate with the United States and international community to combat terrorism and terrorist financing after Tripoli's decision to renounce terrorism and its weapons of mass destruction programs.

The report reviewed statements by Malian President Amadou Toumani Toure on July 20th, 2009 in which he confirmed that Libya, Algeria, and Mali planned to co-ordinate military and intelligence efforts to fight security threats linked to AQIM in the Trans-Sahara region.

The report noted Libya's reconciliation and rehabilitation effort sponsored by the Kadhafi Development Foundation to convince the Libyan Islamic Fighting Group (LIFG), previously affiliated to al-Qaeda, to renounce violence and terrorism. Six leading members of LIFG, held in the Abu Salim prison, issued a document renouncing violence and claiming to adhere to a more sound Islamic theology.

The report said that LIFG's 417-page document, "Revisionist Studies of the Concepts of Jihad, Verification, and Judgment of People", gave detailed interpretations of the "ethics and morals to jihad". It included the rejection of violence as a means to change the political situations in Muslim majority countries whose leaders are Muslim, and condemned the killing of women, children, the elderly, clerics, and the like. Reducing the notion of jihad to fighting with the sword is an error, it added.

The US State Department report added that Libyan authorities released about 144 former LIFG members and 60 members of other jihadist groups from prison after completing their rehabilitation program.

Finally, the report also indicated that the Trans-Sahara Counterterrorism Partnership (TSCTP) has been successful in building the capacity of Sahara and Sahel region countries and co-ordinating efforts, despite political setbacks over the years caused by coup d'états, ethnic rebellions, and extra-constitutional actions.

The TSCTP is a multi-faceted, multi-year strategy designed to combat violent extremism, and marginalize terrorist organisations by strengthening individual-country and regional counterterrorism capabilities, enhancing and institutionalizing co-operation among the region's security and intelligence organisations, promoting democratic governance, and discrediting terrorist ideology.

The overall goals of the initiative are to enhance the indigenous capacities of governments in the pan-Sahel (Mauritania, Mali, Chad, and Niger, as well as Nigeria, Senegal, and Burkina Faso); to confront the challenge posed by terrorist organisations in the trans-Sahara; and to facilitate co-operation between those countries and US partners in the Maghreb (Morocco, Algeria, and Tunisia).

Source: Magharebia

Nigeria signs Terrorism Prevention and Money Laundering Prohibition Bills

Nigerian President Goodluck Jonathan has signed, the Terrorism (Prevention) and Money Laundering (Prohibition) Bills into law.

The two bills were passed by the Sixth National Assembly and conveyed to President Jonathan for endorsement on Thursday, June 2, 2011.

He signed the bills on Friday June 3, 2011.

According to the statement, the new Terrorism (Prevention) Act, 2011 will institutionalize measures for the prevention, prohibition and combating of acts of terrorism and the financing of terrorism in Nigeria.

In addition, it will pave way for the effective implementation of the Convention on the Prevention and Combating of Terrorism as well as the Convention on the Suppression of the Financing of Terrorism, and prescribe penalties for the violation of its provisions.

The Money Laundering (Prohibition) Act, 2011 cancels the Money Laundering Act, 2004 and makes comprehensive provisions to ban the financing of terrorism, and the laundering of the proceeds of crime or illegal acts.

It also increases the scope of supervisory and regulatory authorities so as to address the challenges faced in the implementation of the anti-money laundering regime in Nigeria.

Source: All Voices

Nigeria: Lawmakers suspend money laundering bill indefinitely

The House of Representatives has indefinitely suspended consideration on the anti-money laundering bill, which the president, Goodluck Jonathan, has twice urged a speedy delivery to, against a global deadline.

The House made attempts yesterday to discuss the bill, which is fashioned after the international framework against corruption, but deferred further action on it when members sought to limit some of its provisions.

The bill, which had gone through two readings and committee considerations, awaits a final plenary approval and third and final passage.

The Deputy Speaker, Usman Nafada, said the consideration will now be carried out on a “suitable date”, two days after the Senate also voted to debate the legislation on a further date.

The lawmakers’ decision came after receiving a fresh communication from Mr Jonathan, advising them against tampering with certain provisions of the proposal, and for a speedy delivery of the two bills which had already failed to meet an earlier June 30, 2010, deadline.

“The draft bills presented to the National Assembly are consistent and in compliance with global instruments, which Nigeria has signed and ratified,” the president said.

He said the Financial Action Task Force (FATF) requires all member-states to model their domestic legislation in consonance with global best practices. Mr Jonathan said another meeting of the international body in September 2010, would welcome the delivery of the bill.

Curtail the powers

But during the House second emergency sitting Thursday, the lawmakers questioned certain provisions of the legislation, as earlier done by the senators, and sought to curtail the powers of the bill as presently stated.

Members particularly opposed the requirement that transactions with banks, by individuals to the tune of N5 million, and N10 million for corporate entities, be reported to the Nigeria Financial Intelligence Unit (NFIU).

The lawmakers said the provision, and many others, deserve a review and should not be allowed straight passage as requested by Mr Jonathan.

Mr Nafada ruled that the bill be suspended to a further date, after unsuccessfully trying to secure the lawmakers’ support for it. The date may not be earlier than the chamber’s October 2010 resumption date, which will come after the next FATF meeting.

Source: Next

Nigerian president signs terrorism, money laundering bills

Nigeria’s President Goodluck Jonathan has signed into law two bills on terrorism prevention and the anti-money laundering.

A statement from the president’s office said the bills were passed by the National Assembly and conveyed to him for assent on June 2, which he signed the following day.

The new Terrorism Prevention Act prescribes measures for the prevention, prohibition and combating of acts of terrorism and the financing of terrorism in Nigeria.

It also provides for the effective implementation of the Convention on the Prevention and Combating of Terrorism as well as the Convention on the Suppression of the Financing of Terrorism, and prescribes penalties for the violation of its provisions.

The Money Laundering Prohibition Act repeals the Money Laundering Act of 2004 and makes comprehensive provisions to prohibit the financing of terrorism, and the laundering of the proceeds of crime or illegal acts.

The bills also expand the scope of supervisory and regulatory authorities to address the challenges faced in the implementation of the anti-money laundering regime in Nigeria.

Source: Africa Review

KENYA: AML Bill Passes, But Does Govt Mean Business?

Kenya's Parliament finally passed the Proceeds of Crime and Anti-Money Laundering Bill in December. But while the passing of the bill is viewed as a highlight of the Tenth Parliament, many fear it may just be a gimmick by the government to appease international partners.

George Kegoro, the executive director of International Commission of Jurists - Kenya Chapter, says while the legislation is good, he doubts there is political will to completely stamp out money laundering in Kenya.

"The existence of the legislation is not sufficient to deter the vice neither are the stiff penalties that are recommended in the bill," he says. "There is need for genuine support from the government to enact this law. We need a good set of people to be put in place to interpret the legislation."

Kegoro, whose organisation undertakes advocacy and policy work aimed at strengthening the role of lawyers and judges in protecting human rights and the rule of law, argues that while the bill was government-sponsored, Kenya’s track-record on corruption is poor and he doubts the genuineness of the political class.

It is the fourth attempt since 2004 to pass a bill to prevent the concealment of large profits from drug trafficking and other organised crime, and even this time around it faced resistance from members of parliament who believed the bill was a sly back-door re-introduction of an Anti-Terrorism Bill which had been quashed.

When the bill was tabled in November, an assistant minister in defiance of his own government, strongly opposed the tenets of the Bill. The assistant minister for public service, Aden Sugow, opposed the Bill saying it was an attack on the Muslim community. He argued implementing the Bill would be bowing to the interests of external interests and said that Kenya currently has adequate laws in place to deter money laundering.

While supporting the bill, defence minister Yusuf Hajji warned of a general feeling among the Muslim community that the legislation was targeting them. The Bill went forward after assurances from Prime Minister Raila Odinga that the government had no such intentions.

Once signed by the president, the law will establish a Financial Reporting Centre to assist in the identification of the proceeds of crime. An Asset Recovery Agency will be charged with tracing and recovering ill-gotten assets.

According to Job Ogonda executive director of international corruption watchdogs Transparency International, this would mean millions of dollars stashed in off-shore accounts swindled from Kenya could be recovered.

But Ogonda doubts the passage of new legislation will improve Kenya’s standing as a corrupt state internationally.

"At the moment it is embarrassing to be a Kenyan. Nigeria is improving with regards to corruption because they have shown tangible commitment of doing something about graft. However, the same cannot be said for Kenya," he says.

"We have previously had good pieces of legislation which would have helped fight graft, however, nothing has been done. How many ministers or former ministers have ever gone to prison because of corruption?" Ogonda wonders.

Ogonda is referring to anti-corruption legislation such as the Public Procurement and the Public Officers Ethics Act which require all public office holders to declare their wealth and origin of the same: this older legislation has had no noticeable effect.

Kenya’s record internationally as a corrupt state has for many years been bad and in the bribery and corruption index released by Transparency International, the country has kept the company of states such as Nigeria, Russia and Zimbabwe. Currently, Kenya is position 147 out of 180 on the global index of corruption.

Indeed the passing of the anti-money laundering bill comes in the wake of the release of a U.S. State Department report saying 93 million dollars of earnings from drug trafficking are laundered in the country’s financial system annually.

Another equally damning report by a UK firm, Kroll Associates, hired by the Kenyan government to track wealth acquired corruptly, revealed an estimated $1.7 billion is currently stashed in off-shore accounts. While the results of this 2004 report have remained confidential, the document was leaked: no action has been taken against any of the prominent figures named in its 110 pages.

But all the right noises were made when the bill was moved in Parliament by deputy Prime Minister Uhuru Kenyatta, who said that in view of the magnitude of the problem to the economy, the debate should focus on the quality of the legislation to ensure it was stringent enough.

Seconding the bill, Raila said, "The country risks becoming a pariah state unless the legislation is passed. We have suffered from the effects of money laundering especially in the property sector whose value has been skyrocketing due to the money being brought from the acts of piracy off the coast of Somalia".

A boom in property prices in Nairobi is preventing a majority of Kenyans from buying real estate, and in some cases even pricing locals out of the rental market. Media reports are linking the boom with profits from Somali pirates who seized numerous vessels during 2009, extracting handsome fees from their owners before releasing ships and crew members. In certain Nairobi neighbourhoods, Somalis are willing and able to pay rent up front for periods of even up to two years.

Ogonda states that for many years, Kenya has been a hub of money laundering with illegally acquired cash from Europe, South Africa, South America, Democratic Republic of Congo, Sudan, Rwanda, Burundi, Uganda and Tanzania finding its way into local financial markets.

"Due to our porous borders and poor implementation of legislation, people have simply walked in with huge amounts of cash, hired a lawyer to front for them who in turn invest the cash, especially in property," Ogonda says.

He says despite moves to assure the independence of the new watchdog agencies' leadership, and fresh monitoring requirements for the banking system, the version of the bill which is now awaiting presidential assent does not demand greater accountability from lawyers whose lawyer-client privileges remain intact.

Kegoro notes that the prescribed penalties are fairly high - jail terms of two to five years, with fines of up to $65,000 for individuals, and corporate penalties set as high as $330,000 or the value of the property. But, he argues, it is not the severity of the penalty that will make people fear it. It is the certainty of being caught, hence the need for genuine political will to implement the law.

Ogonda is in agreement. "Application of the bill is what will be the determining factor. The structure of governance has to support the law and if it remains the same the legislation can exist and nothing will change."

By Susan Anyangu-Amu

Source: IPS

UK jury: Nigerian leader's sister laundered money

A U.K. jury has convicted the sister of a former Nigerian governor on charges of money laundering and mortgage fraud.

Christine Ibori-Ibie, sister of politician James Ibori, was found guilty Tuesday of 12 charges stemming from allegations she helped her brother embezzle an estimated $101.5 million from Nigeria's Delta state into U.K. bank accounts.

The jury acquitted one of Ibori's former assistants, while a third accused aide's trial continues Wednesday.

Nigeria's anti-graft agency says Ibori stole as much as $292 million while governor in the oil-rich state in the Niger Delta.

A Nigerian judge in December dismissed a 170-count fraud case against Ibori. Ibori was arrested May 12 in Dubai on a U.K. warrant and remains there, but is free on bail.

Source: The Associated Press

Former Nigerian state governor sentenced on corruption charges

The Associated Press
Thursday, July 26, 2007

LAGOS, Nigeria: A court in Nigeria sentenced a former state governor to two years in jail Thursday and ordered him to forfeit properties and cash worth millions.

Dieprieye Alamieyeseigha, former governor of oil-rich Bayelsa state, pleaded guilty to six counts of corruption and money laundering before Judge Mohammed Shuaibu of the Lagos High Court. The judge sentenced him to two years jail on each count, but ruled the jail terms be served concurrently from the time of his arrest in Nigeria two years ago.

The former governor will forfeit to the government housing estates in different parts of the country, stocks worth US$7.9 million (€5.76 million) and cash in different currencies estimated to be worth several million dollars (euros).

Alamieyeseigha was first arrested and charged with money laundering in London in September 2005. He escaped from Britain while out on bail, allegedly disguised as a woman, and returned to Nigeria where he was immune from prosecution as a state governor. Within weeks, he was removed from office by his state's lawmakers and subsequently arrested and charged by Nigeria's Economic and Financial Crimes Commission.

Having spent nearly two years in jail prior to his trial, Alamieyeseigha will be eligible to be released within about a year.

Armed militants who have attacked oil installations in Nigeria's southern oil region and kidnapped foreign oil workers had listed freedom for Alamieyeseigha among their demands, saying he was singled out by former president Olusegun Obasanjo over political differences.

Since President Umaru Yar'Adua succeeded Obasanjo at the end of May, Nigeria's financial crimes agency has stepped up efforts to try several former state governors for stealing public funds while in office. At least six former governors are currently under arrest and four of them have been charged to court.

Nigeria is regularly rated one of the most corrupt countries in the world by Berlin-based anti-graft watchdog, Transparency International.

Yar'Adua on taking office pledged to fight corruption, largely blamed for widespread poverty and lack of development in Nigeria despite its oil riches.

http://www.iht.com/articles/ap/2007/07/26/africa/AF-GEN-Nigeria-Corruption.php

EFCC: Nigeria Not Suspended from Egmont Group

Economic and Financial Crimes Commission (EFCC) has debunked a media report suggesting that the Nigeria Financial Intelligence Unit, NFIU had been suspended from the Egmont Group.

A statement digned by EFCC's Head of Media and Publicity, Mr. Femi Babafemi, said that the report is misleading and embedded in falsehood, adding that Nigeria has not been suspended from the Egmont group.

The statement said further: "What might have been misinterpreted, albeit mischievously, by the reporter is a routine development in Financial Intelligence Units, (FIUs) across the world whenever there is a change of leadership at the FIU.

In the case of Nigeria Financial Intelligence Unit, (NFIU), the Unit was not suspended from the membership of Egmont Group.
Instead a precautionary step was taken to deny the former Head of the NFIU access to the anti-money laundering site while the new boss of the NFIU completes his documentation with the global body.

It should be noted that the site is a secured one where sensitive information on on-going investigations is made available to the NFIU and as such cannot be left unprotected.

The Egmont Group is a global body whose relationship with member countries is institution based and not built around individuals.

In the last one year, at least four countries which had faced a similar transition had also experienced the same development. This misleading report further underscores the need for the media to always crosscheck and confirm information especially on technical issues like this before going to press.

Source: This Day Online

Nigeria: Tackling money laundering in cash driven economy

Nigeria's effort at tackling money laundering has received its reward with the removal of the country's name from FATF black list. NSE AKPAN looks at the hurdle of a cash based economy faced by the endeavor.

The Federal Government as well as the financial sector regulators is fighting money laundering on all fronts. One of the areas in which it has increased effort is the banking and financial industry where the Nigeria Financial Intelligence Unit (NFIU) has made it mandatory for banks to comply with its directive on reporting cash transactions beyond the specified limit set for both individuals and corporate organisations. To facilitate this, banks have also mandated to set up anti-money laundering software to ensure electronic transfers suspicious transaction reporting (STRs) and currency transaction reports (CTRs) to the NFIU.

CBN has also issued several directives to banks on the compliance with know your customers (KYC) provisions. Despite these strides, a major hurdle still remains the prevalent high dependence of cash in the economy.

The NFIU draws its powers from the Money Laundering (Prohibition) Act (MLPA) 2004 in the fight against the menace. The 2004 Act, is regarded as the turning point in Nigeria's legislation against money laundering. This is because it captures all the details of the menace, which previous laws failed to recognise.

One of the major provisions of the act is that no person or corporate organisation should make or accept cash payment up to N500, 000 or N2 million respectively except through a financial institution. This measure is to ensure that transactions involving such amounts are captured in the formal system and thus making the source of the funds traceable.

Unfortunately, the authorities are unable implement provision and so contain the activities of money laundering despite that penalty for non-compliance is a minimum of N250,000 fine or 15 years imprisonment, and maximum of N1 million or 25 years imprisonment. Statistics show that over $600 million (about N76.20 billion) is lost annually to money laundering and financing of terrorism in Nigeria.

Asishana Okauru, director, NFIU, observed that the major challenge in enforcement is the country's cash driven economy. According to the CBN's economic report for July 2007, total amount outside the banking system amounted to N714.3 billion. This shows N314.3 billion increase from the N400 billion in 2004. This figure is an indication that the economy is predominantly cash based. Despite the security risks many Nigerians still prefer to have receive cash payments for sales or services due to the poor confidence in the financial system occasioned by the high level of dud cheques.

The CBN has stressed the urgent need for banks transit to promote the use of cards, cheques as well as other means besides cash to make payments in order to improve the payment system due to its important implication for the conduct of monetary policy, the soundness of the financial system and efficient functioning of the economy as a whole. Also the Dud Cheque Act has to some extent curtailed issuance of dud cheques.

On the part of operators, banks have been investing heavily in information technology, which has seen to massive deployment of e-based banking application in the country. Also e-payment companies are cashing in on the increasing insecurity in the country resulting in incessant armed robbery attacks and the determination of government to check corruption amongst officials in high places to invest in further deployment of ATMs and other Point-of-Sale terminals to make electronic funds transfer across the country easier, faster and safer.

At the regional level, the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), the regional focal point for the fight against money laundering, terrorist financing and drug trafficking, says it has just completed its mutual evaluation to ascertain Nigeria's compliance with anti-money laundering and terrorist financing provisions. Though the report is yet to be discussed at its plenary meeting, Abdullahi Shehu, director general of GIABA has assured of very positive outcomes. This added to the removal of the country the FATF monitoring list in June and its admission into the Egmont Group in May, all indicate that the government is not relenting in its efforts in ensuring that the country maintains a clean slate in anti-money laundering activities. Though Nigeria was removed from the list of countries and territories that are non co-operative in the international community's efforts to fight money laundering in June 2006, it was still placed under strict monitoring by the FATF until one year later.

The removing the country from its monitoring list in June 2007 does not however spell the end of the road. Prior to the removal, FATF said Nigeria now has an operational financial intelligence unit and has taken steps at the highest levels to fight corruption. The responsibility now lies on the NFIU to sustain this status while and also up the scale on compliance.

http://businessdayonline.com/print/782.html

EFCC accuses banks of facilitating money laundering

By Tobi Soniyi and Everest Amaefule, Abuja

The Chairman, Economic and Financial Crimes Commission, Mrs. Farida Waziri, on Tuesday, accused banks of facilitating money laundering.

Speaking while receiving a delegation of the Chartered Institute of Bankers of Nigeria led by its President, Dr. Erastus Akingbola, in her office in Abuja, Waziri was quoted by EFCC’s spokesman, Mr. Femi Babafemi, as expressing regret that money laundering was sometimes being facilitated by banks.

This is coming just as Waziri said it had become imperative for the EFCC to collaborate with the Federal Inland Revenue Services to rid the country of money laundering and tax evasion.

She said there was the need for both organisations to share information and work together at the International Tax Conference in Abuja on Tuesday, noting that both crimes were depriving the government of funds necessary for development.

Represented at the event by Secretary of the Commission, Mr. Emmanuel Akomaye, the EFCC boss said both crimes were global phenomena that manifested in various forms and derived from loopholes, errors and ambiguities in a country’s relevant laws.

While hosting the CIBN team, Waziri also accused banks of giving incomplete information, while complying with the Nigeria Financial Intelligence Unit.

She therefore urged banks to cooperate with the commission to tackle the problem.

She said, “We should partner with you because each time there is an occurrence of money laundering, there is always insider connection.”

She said that though banks were complying with the NFIU directives to report all financial transactions, the reports in most cases were incomplete, adding that “the banks give you what they want rather than what you want.”

She urged the banks to put their houses in order and avoid being used as tools in the hands of those who were determined to ruin the country through money laundering.

Waziri challenged Nigerian banks to live up to their responsibility by giving the anti-graft agency genuine information on money laundering activities going on in the sector.

She said it was in the interest of the banks to cooperate with the EFCC because the “commission is now poised to beam its searchlight on the banking sector to safeguard the nation’s economy.”

According to her, the visit was timely as the banking sector was crucial to the country’s economy and the realisation of President Umaru Yar’Adua’s seven-point agenda and the Vision2020.

In his response, Akingbola promised to give all necessary assistance to the commission in the fight against financial crimes, noting that the banking institution could only get better if the war against money laundering and other financial crimes were to be successful.

“We are committed to enthroning good ethics in the banking sector and we are determined to get rid of bad eggs in our midst,” he assured.

The CIBN boss revealed that in line with the institute’s policy of zero tolerance for corruption, it had set up a disciplinary committee, which would help the commission in its quest to end financial crimes.

Source: Punch

'Ex-Nigerian state governor operated 59 bank accounts'

Lagos, Nigeria (PANA) - Former Governor Orji Uzor Kalu of Nigeria's South-east Abia state operated 59 local and and foreign bank accounts while in office, using them to siphon millions of naira in public funds for personal use, according to an affidavit attached to charges against the former governor.

The accounts were in the names of companies owned by the former governor and his cronies, and included 8 in the US and Senegal.

Investigations conducted by the anti-graft Economic and Financial Crimes Commission (EFCC), which is currently trying Kalu and four other former state governors, showed that he (Kalu) also had three vessels and landed properties in some parts of the country.

Kalu, who was a presidential candidate under the Progressive Peoples Alliance (PPA) in April's general elections, also had interests in banks in The Gambia, Liberia and Sierra Leone.

His airline, Slok, is based in The Gambia, where he has also acquired other properties including the Tiangi Holiday Resort, an estate and First International Bank.

The former governor is also the owner of the popular local tabloid, The Sun.

Details of the affidavit were published in a local newspaper Thursday, a day after he was refused bail by the Federal High Court in the capital, Abuja.

The court has however fixed Friday for ruling in the bail application by Kalu.

The EFCC had charged Kalu with laundering 3 billion naira (130 naira=US$1).

A judge had earlier ruled that some of the assets be temporarily forfeited to the federal government, but the judgment has yet to be enforced.

Four other former governors from Taraba, Plateau and Jigawa, all states in the north, and South-east Enugu have been slammed with similar charges.

The EFCC, which had accused most of the former governors of the country's 36 states of corruption, is expected to charge more former state executives to court soon.

Lagos - 26/07/2007

http://www.afriquenligne.fr/news/daily_news/'ex-nigerian_state_governor_operated_59_bank_accounts'_200707263960/

Nigeria: Money laundering: Metropolitan Police yet to return evidence on Ibori

By Tobi Soniyi, Abuja

The Federal Government on Monday, said that the Metropolitan Police in the United Kingdom had not returned to it, documents rejected by a London court trying former governor of Delta State, James Ibori, for alleged money laundering offences.

The Attorney-General of the Federation and Minister of Justice, Chief Michael Aondoakaa (SAN), who disclosed this in Abuja on Monday, said that his office had not yet received the documents sent to the Metropolitan Police by the Economic and Financial Crimes Commission under the leadership of Nuhu Ribadu, which a London court had last week held inadmissible.

Aondoakaa told journalists in Abuja that he was yet to receive the said documents as was directed by the court, pointing out that the court had also stated some conditions on which an attorney-general could either refuse to do so or not.

Aondoakaa said, “If you have read the judgment of the London court, it directed that they should return the documents to me, I am waiting for the documents, as they have not returned them, until they return the documents I would then decide on the next line of action.

“I did not send any documents to them and I was not privy to the contents of what they sent, it is when it is returned that I can review the evidence and determine whether I can do anything about it.

“And you know that the London court also spelt out conditions on which an attorney-general can agree or refuse to act, if the people have been convicted or discharged here before, an AG can refuse, our laws do not allow somebody to be tried twice on the same offence.

“If the evidence is political in nature, we can refuse; if the evidence relates to offences which are already subject of prosecution here and investigation is being carried on and there is likelihood that if it is sent over there it will jeopardise the trial here we can refuse.”

Specifically, the court had in its ruling over the admissibility of evidence submitted before it, said that in as much as the right procedures were not followed in initiating that cooperation between Nigeria and the United Kingdom, whatever evidence the British police gathered or got from Ribadu’s EFCC would not be admissible in the ongoing trial of some of Ibori’s associates in London.

On page 10 of the 12-page ruling, the Judge said, “I have taken the trouble to set out in some detail, the chronology of the documentation brought to my attention, because it appears to reveal a woeful lack of communication between the EFCC and the Attorney-General of the Federation; then there has been a lack of communication between the AGF and the Home Secretary.”

Source: Punch

Nigeran banks flout AML law

Nigerian banks have been indicted over non-compliance with the Money Laundering (Prohibition) Act, making them to serve as conduits for looting state resources.

A report by the Central Bank of Nigeria on Sunday said some banks flouted the Money Laundering Act but did not give the names of the banks involved in the offence.

The report titled ‘Banking Supervision Annual Report 2007’ said, “Some lapses were noted in banks’ compliance with the provisions of the Money Laundering (Prohibition) Act, 2004.

“These included non-observance of the know-your-customer principle, failure to fully report international transfer of funds of $10,000 and above, lack of full awareness of controls among employees and failure to include money laundering audit in the audit programme.”

The CBN in the report, however, said it continued to collaborate with the Nigerian Financial Intelligence Unit on the assessment of banks’ anti-money laundering control.

In the last eight years of former President Olusegun Obasanjo, powerful politicians siphoned states funds in connivance with the banks. But local banks, however, claimed innocence.

Meanwhile, the report said total assets of the banking sector increased, by 55.37 per cent or N3.73tn, from N6.74tn in 2006 to N10.47tn in 2007.

“As in 2006, banks’ funds were held in cash and due from other banks, while advances/leases, which constituted the largest component of total assets, grew from N2.081tn in 2006 to N3.802tn (36.32 percent) in 2007.

The report said the major components of liabilities also witnessed increases.

It further said total deposits, other liabilities, and paid-up capital and reserves rose by 55.81 per cent, 86.33 per cent and 64.36 percent, respectively.

It noted that in 2007, the aggregate deposits in the banking sector continued to grow.

“It grew from N1.4tn in 2003 to N1.8tn in 2004, N2.5tn in 2005, N3.4tn in 2006 and N5.4tn in 2007.

“The observed trend reflected a growth rate of 10.4 percent in 2003, 27.5 percent in 2004, 41.7 percent in 2005, 35.2 percent in 2006 and 55.8 percent in 2007,” it added.

Source: Punch

Nigeria, Senegal get ECOWAS posts against money laundering

Abuja, Nigeria - The 34th ordinary summit of the heads of state and government of ECOWAS has allocated the posts of Director-General and Deputy Director- General of the inter-governmental action group on money laundering (GIABA) to Nigeria and Senegal respectively.

According to a communique issued here Monday at the end of the summit, the Nigerian Director-General and his Senegalese Deputy will assume office when the current holders of the posts complete their terms 30 April 2009 and 11 January 2009 respectively.

Regarding the post of Commissioner for Human Development and Gender allocated to Senegal, the Heads of state and government endorsed the appointment by the Council of Ministers of Dr. Adrienne Diop.

They also directed the ECOWAS Commission to undertake a study to be presented to them at their next session on an appropriate structure of the Commission to en s ures effective implementation of community decisions.

The leaders expressed gratitude to all development partners of ECOWAS for their support towards the realisation of the Community objectives and programmes, capacity building of ECOWAS institutions as well as enhancing peace and security in the region.

They drew attention to the continuing need for support towards post-conflict rec onstruction in certain member states and expressed the hope that the Partners Forum on Liberia scheduled to hold on 26-27 June in Berlin, Germany, would be well a ttended by development partners.

They also called on partners to support the forth-coming ECOWAS Conference on Climate Change scheduled for Cotonou, Benin, from 27-31 October, 2008.

The participants expressed deep appreciation to the government and people of India for announcing in April 2008 the facility for duty free imports from African LDCs into India, among other initiatives, and urged ECOWAS LDCs to take full advantage of this offer for the benefit of increased trade exchanges between West Africa and India.

Regarding the ECOWAS/China Economic and Trade Forum planned for 23-26 September 2008 in Beijing, China, the leaders urged member states to effectively prepare with their respective private sectors to derive maximum benefits from the platform.

The Summit endorsed the candidacy of Mr. Gilbert Houngbo of Togo for the position of President of the International Fund for the Development of Agriculture (IFAD).

The next ordinary session of the ECOWAS leaders will hold in December 2008 in Abuja, Nigeria's Federal capital.

Abuja - 24/06/2008

Pana

Source: Afriquenligne

Nigeria: Money Laundering - Kalu Wasting State Funds On Trial-Abia Elders

THE Abia Elders Forum has accused former Abia State Governor, Chief Orji Kalu of wasting state funds on his trial over money laundering at the Federal High Court, Abuja.

The Director of Publicity of the organization, Mr. Uchenna Kalu, said Chief Uzor Kalu had been expending state funds on the battle to free himself from the charges preferred against him by the Economic and Financial Crimes Commission.

The Forum, therefore, challenged the EFCC and the Independent Corrupt Practices Commission (ICPC) to stop Kalu from calling out senior government officials for support as "the charade makes a mockery of the rule of law".

The Forum lamented that each time Kalu appeared in court, hundreds of elected and appointed officials, as well as civil servants would be asked to relocate from Umuahia in apparent show of solidarity but that the true purpose was to mock the judicial process.

"Each appearance costs Abia treasury a conservative estimate of N35 million including airfares, hotel accommodation in choice hotels, overnight allowances, feeding and cost of hiring luxury buses to transport civil servants as cheer leaders.
This act smacks of cynicism, a well orchestrated plan to ridicule the trial process and make it appear as if Abia people are sympathetic to the accused.

"This is far from the truth and a deliberate misrepresentation of the reality. Our Igbo traditional and religious morality recoils at stealing regardless of how the act is done. In the past a person accused of stealing was carried through the market square and his disgraced family cowered in shame and contrition.

Modernisation has not removed the stain of dishonour from the incidence of theft in our midst hence we expect former governor Kalu as an accused person fighting to clear his name to humble himself before the law and desist from acts of provocation," the group said.

Chief Kalu appeared before the court on Wednesday whith a large crowd of supporters. "Already Abia State is broke and bleeding from the rapacious plundering of its monthly allocations and internally generated revenue resulting in workers and pensioners being owed salaries while our people are sinking deeper into poverty everyday," the group claimed.

Nigeria charges eighth ex-governor with corruption

By Camillus Eboh

ABUJA, July 19 (Reuters) - Nigeria has charged a former governor of central Plateau state with corruption and money laundering, court papers showed on Saturday. Michael Boatmang is the eighth governor from the last administration to face graft charges since President Umaru Yar'Adua took office over a year ago, pledging zero tolerance for corruption. The Economic and Financial Crimes Commission (EFCC) accused Boatmang of embezzling over 1.5 billion naira ($13.3 million) between November 2006 and April 2007 when he served as governor.

He pleaded not guilty to 31 counts of corruption when he appeared before a Federal High Court in Abuja on Friday.

Judge Anwuri Chikere refused Boatmang's oral application for bail, but ordered that he be confined to his home because of his medical condition and adjourned the case to Oct. 8.

Boatmang, who was the deputy to ex-governor Joshua Dariye, a fugitive from British justice, took over when Dariye was impeached by the state house of assembly over graft charges. Dariye was re-instated by the Supreme Court six months after.

Dariye, who skipped bail in 2004 to avoid facing money laundering charges in a British court, is standing trial in Nigeria for embezzlement.

Nigeria's 36 state governors have discretionary powers over millions of dollars of public funds and immunity from prosecution while in office.

Nigeria, Africa's top oil producer is one of the world's most corrupt countries, according to independent watchdog Transparency International.

Many plundered public coffers with impunity, and the sight of some ex-leaders in the dock has had a big impact in Nigeria because until the past four years they were considered untouchable.

But prosecution has been slow and anti-graft activists are worried that there has been no significant progress in the court cases of the seven former governors, some charged more than a year ago and released on bail, signalling a lack of will to see the cases through.

Their prosecution is been closely watched by civil society groups keen to see Yar'Adua's pledges of zero tolerance to corruption followed up by action.

Boatmang is the first ex-governor to be charged with graft since Farida Waziri, a retired high-ranking police officer chosen by Yar'Adua, took the helm at the EFCC last month.

Some observers had questioned Yar'Adua's commitment to fighting corruption after the removal in December of Waziri's predecessor, Nuhu Ribadu, who was credited with the prosecution of several former top government officials.

The EFCC in June charged two former aviation ministers with conspiring to embezzle $165 million meant to improve safety in Nigeria's chaotic aviation sector. (For full Reuters Africa coverage and to have your say on the top issues, visit: http://africa.reuters.com/) (Writing by Tume Ahemba; Editing by Dominic Evans)

© Reuters 2008

US backs ECOWAS on trans-border financial crime

THE United State (US) government has pledged its support to the International Action Group Against Money Laundering in West Africa (GIABA) an institution under ECOWAS Commission in its move to fight against transboder financial crimes.

Speaking at the opening session of a 7-day regional financial investigative techniques course for investigators sponsored and organized by GIABA and US, the US Ambassador to Nigeria Robin Sanders also stressed that criminals take advantage of countries with weak law enforcement agency and infrastructures to carry out their crime successfully.

According to her, the training will focus on financial investigating techniques that will improve the nation’s law enforcement skills to effectively investigate and successfully prosecute financial crime.

“We believe as partners that the importance of any capacity building programme is about building institutions and not heading the institution.

“We are here to help focus on institution building as you effectively try to prosecute challenges to financial crimes and other crimes that exist in your countries especially here in Nigeria.

“You will agree with me that world wide, there is an urgent and growing need to develop effective law enforcement techniques to detect and successfully prosecute economic and financial crimes.

“Time is of essence because criminals are constantly searching for countries with weak laws, infrastructure and ineffective law enforcement. Fortunately you as GIABA member countries are responding to this needs. Increasing law enforcement capacity is key in achieving that goal.

“We will provide you with international accepted and respected best practices that you can use to combat economic crimes including the detection of complex financial crimes such as corruption and money laundering”, she said.

The Ambassador however, pledged that the US will provide all the support needed through out the training that will help in fighting financial crime within and outside ECOWAS region.

“The training is designed to sharpen your skills to follow the money and collect evidence that will ultimately result in successful prosecution”, she stressed.

In his address, the Director-General of GIABA, Dr. Abdullahi Shehu said that the mandate of GIABA is to develop strategy that will protect member’s state against anti-money laundering.

Also in her address, the EFCC, Boss Mrs. Farida Waziri said that EFCC as a strong allies to GIABA,have the responsibility to ensure that GIABA succeeds and remains a vital arm of the international alliance against money laundering and terrorist financing.

According to the EFCC Boss, in the coming months, EFCC would increase its intelligence gathering capabilities, in the pursuit of proactive preventive strategy, adding that it require much planning, strategizing, synergizing and lots of training.

“The challenges of effective investigation and prosecution of financial crimes are quite enormous and sometimes onerous. The inadequacy of laws, procedural and substantive, undue interference, constitutional constrains, slow justice system, high cost, etc.

“But even more important, is the credibility and integrity of the investigators himself. No financial crime can be successful investigated and prosecuted without a good job done by an investigator. And no investigator will do a good job if his integrity is questionable”, she stressed.

She however, advised the participants to sharpen their investigative skills and ensure that they are above board, adding “that is a hallmark of law enforcement which you must uphold”.

Source: Vanguard