EFCC Seeks Stiffer Sanctions For Financial Crimes

Chairman  of the Economic and Financial Crimes Commission (EFCC) Farida Waziri has advocated stiffer sanctions for perpetrators of financial crimes.

Waziri spoke at a public hearing, midweek, held by the House of Representatives Committee on Drugs, Narcotics and Financial Crimes.

The hearing was on the bills for an Act to provide for measures to combat terrorism and related matters and one to repeal the Money Laundering Prohibition Act, 2004.

The Weekend Tide source reports that the Financial Action Task Force (FATF) and some other anti-money laundering agencies had placed Nigeria on their watch list.

The action led the Federal Government to inaugurate the Presidential Inter-Ministerial Committee to address identified weaknesses in the nation’s anti money laundering crusade.             Waziri said the sanctions regime in the 2004 Act was not proportional as to discourage criminals, noting that the existing laws were ambiguous in defining the 20 offences the FATF categorised as money laundering and financial crimes.

“There is a need for the Money Laundering Prohibition Act (MLPA) to recognise and designate the 20 serious offences as recommended by the FATF.

“The bills, when passed, will also address the wide range of inadequacies in Nigeria’s AML/CFT legal framework as highlighted in country’s 2008 Mutual Evaluation Report by the FAFT and the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA),” she said.        According to her, Nigeria is rated non-compliant in majority of the FATF’s 40 recommendations, mainly on account of weakness in the country’s legal framework.

Waziri reminded the committee that Nigeria had been the target of review by the FATF on account of the weakness observed in the nation’s anti-money laundering regime and her readiness to combat terrorism.

 She identified weak sanctions regime, inadequate provisions for customer, due diligence requirements, non-inclusion of politically exposed persons and lack of definition of suspicious transaction reporting as some of the weaknesses.

Waziri also cited the absence of legal protection for reporting institutions and persons and absence of legal provisions for the protection of information of Nigeria Financial Intelligence Unit (NFIU).

She said most countries have laws to protect informants so that they would not be endangered. “ We need to protect you (informants) so that we can encourage people to come forward, that is the whistle blowing we are talking about,” she said.

 In his presentation, Mr Lanre Ipinmisho, Director-General of Nigeria Drug Law enforcement Agency (NDLEA), said all stakeholders must play a role by collaborating with one another in fighting corruption and drug related offences.Ipinmisho said it was through collaboration of all anti graft agencies and security outfits that the issue of drug barons and corruption would be dealt with.“As the nation prepares for 2011 elections and we want our votes to count, the problems we have is not the laws to implement all these but the commitment and sincerity of all relevant agencies.“We have all the laws; we also need the officers to implement the laws without pressure from international friends to deal with the drug barons who were ready to use their ill gotten wealth to rig elections in their favour,’’ he said.Declaring open the public hearing, the Speaker, House of Representatives, Dimeji Bankole, said that all terrorist acts are crimes under international law, adding that legislation and gathering of intelligence must be used to combat terrorism. Represented by the House leader, Hon. Tunde Akogun, Bankole, pledged early passage of the two bills.He assured that the House would ensure transparency, probity and accountability in legislating against terrorism, money laundering and corruption.Chairman of the committee, Rep. Rabe Nasir, said it was the responsibility of all stakeholders to fight terrorism and money laundering as both were capable of ruining a nation.Nasir, however, said the committee was dissatisfied with the efforts of anti graft agencies in combating money laundering.The Weekend Tide source reports that there were presentations from the Central Bank of Nigeria, NFIU, Nigeria Police Force, Nigeria Civil Defence and Security Corps and Securities and Exchange Commission.