Nigeria’s banking system is still prone to corruption and not
completely safe from abuses, former chairman of the Economic and
Financial Crimes Commission (EFCC), Mallam Nuhu Ribadu, has
declared.
He said most of the abuses and financial infractions in banking
system occur with the involvement of banks and bankers.
The former EFCC boss made these submissions yesterday in Abuja
at the launch of a book titled, ‘Improving anti-money laundering
compliance:self-protecting theory and money laundering reporting
officers’ written by Dr. Abdullahin Usman Bello.
“There are many avenues through which such abuses happen. Some
individuals use the convenience of the areas that are subject to
abuse as private banking offered by commercial banks for money
laundering. Some others also use the anonymity offered by
electronic banking to conceal suspicious transactions. Yet, some
others use cash intensive customers, who are into legitimate
businesses as fronts or conduits for money laundering.”
The first step to getting it right , he noted, “would mean
getting the banks and operators to have an introspective look at
some of these things, and resolve to put a stop to it both in
public and corporate interest, as well as the individual’s
interest.”
He harped on risk management which he noted must be strengthened
in bank operations.
“The risks should also be managed whether high, medium or low-
risk profiling through reporting, due diligence and monitoring.
There should also be thorough profiling of customers and manual and
automated checks when onboarding new customers or reviewing
existing customers, to checkmate abuse and potential risks”, he
added.
He proffered steps to be taken in checking internal financial
abuse in banks.
“As leadership is the first step in getting it right especially
on matters of reforms and integrity, the board and senior
management of financial institutions have a huge responsibility in
ensuring strict compliance to Anti-Money Laundering (AML) regimes.
When it is the board or management staff that bend rules to approve
suspicious deals or warehouse illicit funds, the rest of the staff
are only being shown how to behave. The top has to therefore be
firm for the rest to fall in line” he said.
Board and management Ribadu said, “need to cooperate with law
enforcement agencies and regulators, not only by the word of mouth
but in letter and spirit. There has to be genuine commitment to the
fight against money laundering at the highest decision-making body
of financial institutions. Those in charge of decision at that
level need to look at the wider picture, beyond business and
profit.”
He said, “There are issues to be determined by public interest
and large corporate interests. Whenever your institution is exposed
as facilitator of illegitimate transactions, it would have an
effect on your corporate image, more so when such a thing leads to
court cases.”
These processes he said, are possible to adhere to, “to the
extent that the financial institution has trained staff that are
versed in Anti-Money Laundering (AML) guidelines and laws. The
institutions should also ensure that they have adequate systems,
both manual and automated, for identifying and reporting suspicious
activities.”
Once transactions are deemed suspicious, the institution Ribadu
said, “has a duty to report such deals to the National Fraud
Intelligence Unit (NFIU)- the NFIU will then disseminate
intelligence to law enforcement agencies.”
Attaining such compliance efficiency he said means that the
Financial Institutions should have adequate and appropriate
internal control systems, in the first place.
Earlier, chairman of the occasion and Governor of the Central
Bank of Nigeria (CBN) Mr. Godwin Emefiele said there was need for
governments and institutions around the world to take the issue of
flow of capital and funds seriously. Dirty money he said “are
proceeds of crime, and it’s time for governments to take serious
action.”
Proceeds of crime according to CBN governor, “destroy the fabric
of society and country. Leaders must do everything possible to
combat crime and corruption particularly money laundering.”
Nigeria’s banking system is still prone to corruption and not
completely safe from abuses, former chairman of the Economic and
Financial Crimes Commission (EFCC), Mallam Nuhu Ribadu, has
declared.
He said most of the abuses and financial infractions in banking
system occur with the involvement of banks and bankers.
The former EFCC boss made these submissions yesterday in Abuja
at the launch of a book titled, ‘Improving anti-money laundering
compliance:self-protecting theory and money laundering reporting
officers’ written by Dr. Abdullahin Usman Bello.
“There are many avenues through which such abuses happen. Some
individuals use the convenience of the areas that are subject to
abuse as private banking offered by commercial banks for money
laundering. Some others also use the anonymity offered by
electronic banking to conceal suspicious transactions. Yet, some
others use cash intensive customers, who are into legitimate
businesses as fronts or conduits for money laundering.”
The first step to getting it right , he noted, “would mean
getting the banks and operators to have an introspective look at
some of these things, and resolve to put a stop to it both in
public and corporate interest, as well as the individual’s
interest.”
He harped on risk management which he noted must be strengthened
in bank operations.
“The risks should also be managed whether high, medium or low-
risk profiling through reporting, due diligence and monitoring.
There should also be thorough profiling of customers and manual and
automated checks when onboarding new customers or reviewing
existing customers, to checkmate abuse and potential risks”, he
added.
He proffered steps to be taken in checking internal financial
abuse in banks.
“As leadership is the first step in getting it right especially
on matters of reforms and integrity, the board and senior
management of financial institutions have a huge responsibility in
ensuring strict compliance to Anti-Money Laundering (AML) regimes.
When it is the board or management staff that bend rules to approve
suspicious deals or warehouse illicit funds, the rest of the staff
are only being shown how to behave. The top has to therefore be
firm for the rest to fall in line” he said.
Board and management Ribadu said, “need to cooperate with law
enforcement agencies and regulators, not only by the word of mouth
but in letter and spirit. There has to be genuine commitment to the
fight against money laundering at the highest decision-making body
of financial institutions. Those in charge of decision at that
level need to look at the wider picture, beyond business and
profit.”
He said, “There are issues to be determined by public interest
and large corporate interests. Whenever your institution is exposed
as facilitator of illegitimate transactions, it would have an
effect on your corporate image, more so when such a thing leads to
court cases.”
These processes he said, are possible to adhere to, “to the
extent that the financial institution has trained staff that are
versed in Anti-Money Laundering (AML) guidelines and laws. The
institutions should also ensure that they have adequate systems,
both manual and automated, for identifying and reporting suspicious
activities.”
Once transactions are deemed suspicious, the institution Ribadu
said, “has a duty to report such deals to the National Fraud
Intelligence Unit (NFIU)- the NFIU will then disseminate
intelligence to law enforcement agencies.”
Attaining such compliance efficiency he said means that the
Financial Institutions should have adequate and appropriate
internal control systems, in the first place.
Earlier, chairman of the occasion and Governor of the Central
Bank of Nigeria (CBN) Mr. Godwin Emefiele said there was need for
governments and institutions around the world to take the issue of
flow of capital and funds seriously. Dirty money he said “are
proceeds of crime, and it’s time for governments to take serious
action.”
Proceeds of crime according to CBN governor, “destroy the fabric
of society and country. Leaders must do everything possible to
combat crime and corruption particularly money laundering.”
Read more https://www.nairalaw.com/nigeria-banking-sector-still-prone-to-corruption-ribadu/