NFIU bridging gaps in fight against money laundering, Terrorism financing

The Nigerian Financial Intelligence Unit (NFIU) has revealed that it is currently working assiduously to bridge the gaps in efforts to combat money laundering and terrorism financing in Nigeria, whilst also fostering timely information exchange and sharing between members within the West Africa sub-region.

Giving his keynote speech at the 5th Induction Ceremony and Annual General Meeting of the Compliance Institute, Nigeria (CIN), held in Abuja, on behalf of the Director, NFIU, Modibo Tukur Muhammed Giya pointed out that Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) are challenging endeavours and special battles of global concern which can only be won through cooperation, effective coordination, and collaboration.

Muhammed Giya said that money laundering and terrorism financing activity in one country could have serious cross-border and even global adverse effects on other countries.

Muhammed noted that jurisdictions with weak or ineffective controls are especially attractive for money launderers and financiers of terrorism.

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“These criminals exploit the complexity of the global financial system, the speed at which money can traverse borders, as well as differences between national laws to carry out their concealment objectives.”

He also said that the absence of common AML/CFT Compliance Standards in Africa and its Sub-Regions has continued to hinder the effectiveness of the fight against money laundering and the combating of financing of terrorism in the Continent.

According to him, “Special Money Laundering Schemes such as Trade-based Money Laundering (TBML) that are cross border in nature can only be defeated through effective collaboration, coordination and extensive use of Technology.

“To foster timely information exchange and sharing between member Financial Intelligence Units in the Sub-Region, NFIU which is the new Headquarters of West African FIUs Forum is currently developing a Secure Web Exchange Platform to be hosted by the Forum Secretariat for information exchange on Money Laundering and terrorism financing in the region.

In his words: “It is a fact that financial institutions, in particular, banks remain a key conduit through which money flows and where money can be laundered which makes the financial system the focal point of anti-money laundering and counter financing of terrorism initiatives.

“Main objectives of combating money laundering and terrorist financing are to protect society from crime and the stability and integrity of the Country’s Financial Systems. It requires a coordinated approach by all stakeholders: Regulatory Bodies, Reporting Entities, Financial Intelligence Units and others.

“In the battle against Money Laundering and Terrorism Financing, Fostering Common AML-CFT Compliance Standards through effective Regional/Continental Cooperation, Coordination and Collaboration remains the panacea for effective AML/CFT Regime in Africa and its Sub-Regions

“It is therefore recommended that all AML/CFT Stakeholders should entrench strategic partnership that will potentially take the form of a platform where all parties (both private and public) along the value chain collaborate—sharing relevant information, standardizing AML-CFT Compliance Standards, and collectively monitoring for red flags,” Muhammed Giya urged.