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CBN laments rising cases of money laundering

By on May 14, 2014

The Central Bank of Nigeria on Monday lamented the rising cases of financial crimes in the country, noting that the trend was raising serious concerns about the integrity of the financial system.

The Acting Governor, CBN, Dr. Sarah Alade, stated this in Abuja at the opening session of the regional course on combating money laundering and other financial crimes.

The workshop was organised by the West African Institute for Financial and Economic Management.

Alade said the increase in money laundering needed to be addressed, adding that the dimension, nature and level of sophistication of the crime were becoming a major source of worry for the monetary authorities.

She said, “A concentration of economic power by organised crime spells doom and could all too easily infect the political terrain of any nation.  This portends greater risk for the rule of law and burgeoning democracies in the sub-region

“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. Over 80 per cent of the proceeds of money laundering are associated with banks one way or the other all over the world.”

She listed some of the financial and economic crimes as money laundering, which is closely related to illicit trafficking in narcotics and human beings, corruption, terrorism, prostitution, illegal mining and other nefarious activities; foreign exchange malpractices as well as bank and tax fraud.

Alade lamented that despite international efforts to mitigate the menace of money laundering, including the establishment of the Financial Action Task Force, the acts were still prevalent

Also speaking at the event, the Director-General, WAIFEM, Mr. Akpan Ekpo, agreed that money laundering was a threat to financial stability in any economy.

He said, “A number of the predicate offences for money laundering are common in our region. These include drug trafficking, human trafficking, arms trafficking and counterfeiting, among others.

“It is for this reason that the WAIFEM organises such a course on a yearly basis to continuously expose participants to the techniques of combating the menace.”

At another forum, Alade said there was a need for what it described as “complementary reforms” to address the issue of inequality, corruption, unemployment and insecurity in the country.

She stated this in Abuja at the first national seminar on banking, finance and allied matters for legislators.

The seminar, with theme: ‘The legislature and the banking and finance sector: Partnering for Nigeria’s economic growth and development’, was organised by the Chartered Institute of Bankers of Nigeria.

Alade said there was a need for the government to come up with policies to address the issue of inequality and unemployment in order to complement the success so far recorded through some of the reforms carried out by the central bank.

Represented by the Deputy Governor, Corporate Services, CBN, Mr. Suleiman Barau, Alade said there was a need to focus on diversifying the economy away from oil dependency to agro and industrial-based economy.

She said, “The successes achieved over the years could not have been possible without the right legal framework.

 

 

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