Nigerian anti money laundering and combating

The rationale for record keeping is to facilitate the reconstruction of individual transactions and provide, if necessary, evidence for the prosecution of criminal activity. Money laundering by definition is a serious challenge as it is a nefarious practice that is mainly committed by individuals and institutions that include the elite and politically connected members of the society.

Customer identification and verification can reduce the risk of impersonation fraud.

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As things stand today, the laws, regulations and institutions that have been put together have yielded disappointing results. Forty eight additional infractions were identified and sanctions prescribed to directly target bank directors and other key officials in addition to the existing penalties that targeted only the financial institutions.

If only the EFCC would expend as much diligence and doggedness in prosecuting its primary responsibilities as it has done in attempting to retain the NFIU when the Egmont Group rules require a stand-alone Unit, things would probably have been better.

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The article does not intend to replace professional or legal advice. AML regulations are uniquely susceptible to politicisation and it is worrisome that this is what has occurred in Nigeria. It is no longer a hidden fact that as long as you have the right political affiliations the odds of being swept up by AML enforcement actions are minimal.

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If a PFA suspects or has reasonable grounds to suspect that funds are being paid to the wrong person, it should report promptly its suspicions to the police. The information collected and verified will help PFAs determine risks posed by a particular pension account, allowing the institution to ensure that it has the proper controls in place, including suspicious activity monitoring procedures, and to monitor and report on the risks of a particular client.

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The average Nigerian does not have access to the kind of illegally acquired funds that require laundering and the scale of the challenge can only be fathomed when it is realised that the AML violators are in the main from the same circle as the regulators and political leadership. Indeed this is timely and necessary as the recent CBN half-year Economic Report revealed that the AML systems in place in the majority of commercial banks have failed to meet a significant number of compliance requirements. If anything, there appears to be even more intrigues and selective enforcement of the rules. Selective enforcement, collaboration with vested interests, political posturing, regulatory capture and enforcement agencies working at cross-purposes have all contributed to eroding public trust in this critical area for the nation's economic security and well-being. For those PFAs that assume a higher-risk fraud profile, management should provide a more robust anti-fraud compliance program that specifically monitors and controls the higher risks that management and the board have accepted. Adopting a risk-based approach implies the adoption of a risk management process for dealing with fraud and money laundering. This process encompasses recognising the existence of the risk at the customer due diligence stage, undertaking an assessment of the risks at the enhanced due diligence stage and developing strategies to manage and mitigate the identified risks at the Enhanced on-going monitoring stage.

Additionally, management should consider the staffing resources and the level of training necessary to promote adherence with these policies, procedures, and processes. Using anti-money laundering measures to curb pension fraud in Nigeria 24 Jan Share: Anti-money laundering author Ehi Eric Esoimeme devles into the issues surrounding pension fraud in Nigeria.

Money laundering in nigeria pdf

The average Nigerian does not have access to the kind of illegally acquired funds that require laundering and the scale of the challenge can only be fathomed when it is realised that the AML violators are in the main from the same circle as the regulators and political leadership. This risk-based approach allows countries, within the framework of the FATF requirements, to adopt a more flexible set of measures, in order to target their resources more effectively and apply preventive measures that are commensurate to the nature of risks, in order to focus their efforts in the most effective way. This article is expressing personal opinions and is meant for information purposes only. AML regulations are uniquely susceptible to politicisation and it is worrisome that this is what has occurred in Nigeria. For those PFAs that assume a higher-risk fraud profile, management should provide a more robust anti-fraud compliance program that specifically monitors and controls the higher risks that management and the board have accepted. This is now an issue of critical significance as it undermines the integrity of the sacred relationship between the state and its citizens and without the consent of the citizen to be governed, the result is the recourse to self-help and the looming anarchy that Nigeria is now witnessing. Nigeria's institutions must be allowed to work without interference and should never be used to achieve political objectives. Internal controls, audit and compliance processes should ensure that account managers operate with appropriate oversight and are subjected to periodic audit checks.
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Nigeria: On the Fight Against Money Laundering