Nigeria: Banks and Money Laundering

Editorial
The indictment by the Acting Governor of Nigeria's central Bank, Dr. Sarah Alade that Banks have been aiding money laundering, a practice which puts a slur on their integrity, professional and ethical standard did not come as a surprise to keen observers of the Nigerian banking system. What is however curious is that the charge is coming from the apex bank that has statutory regulatory power to detect, query, and sanction any erring bank that violates the extant banking regulations. 

CBN Governor delivered the indictment at a course on Combating Money Laundering and other Financial Crimes organised by the West African Institute for Financial and Economic Management (WAIFEM) in Abuja last week. According to Mrs. Alade, "bank facilities are used knowingly and unknowingly to further the act of money laundering and in most cases to retain the proceeds of such crime" which include, round tripping, financial fraud, capital flight, fake cheques, fake currency minting, advanced fee fraud and insiders abuse. She also warned that money laundering has adverse effect on foreign direct investment (FDI) "when a country's commercial and financial sector are perceived to be associated with the incidence of organized crimes".

Experts Seek Tighter Regulations against Money Laundering

The Chairman, Lagos Chamber of Commerce and Industry (LCCI), Mr. Remi Bello, has stressed the need for stiffer regulations against money laundering and terrorist financing.

Bello argued that the huge amount taken out of the country illegally would have made a considerable impact on the Nigerian economy.

The LCCI boss stated this at a recent conference tagged: “Anti-money Laundering, Terrorist Financing and Identity Theft Management,” organised by the Lagos branch of the Chartered Institute of Bankers of Nigeria (CIBN).

While stating that money launders used to take away millions of naira in the past, he alleged that the crime has grown into billions of naira. The trend, according to him, calls for greater regulation as a result of the effect on the Nigerian economy.

"It is naive to think that Western nations will help us to police the theft of our patrimony. In many ways, they benefit from our corruption, "he alleged.

He added: "Therefore, there is need for Nigerians to fight for themselves through public enlightenment processes and accountability by Nigerian officials.”

He said that campaign against money laundering and terrorist financing should also at the fore front of any political campaign as well as the on-going national conference.