The
Financial Action Task Force (FATF) has threatened to suspend its
high-level mission visit to Nigeria scheduled for November 20-21 2017
should the country fail to meet the demands of the Egmont Group of
Financial Intelligence Units (FIUs)...
The
meeting was slated as a fact-finding mission to enable FATF determine
whether Nigeria has met the requirements for its readmission into the
Egmont Group.
The
Financial Action Task Force (on Money Laundering), also known by its
French name, Groupe d’action financière (GAFI), is an intergovernmental
organisation founded in 1989 on the initiative of the G7 to develop
policies to combat money laundering.
In
2001 its mandate was expanded to act on terrorism financing. It
monitors countries’ progress in implementing the FATF recommendations by
peer reviews of member countries.
The FATF secretariat is housed at the headquarters of the OECD in Paris.
The
threat to suspend its visit to Nigeria was contained in a statement
yesterday in Abuja by Salihu Isah, Special Adviser, Media and Publicity
to the Attorney General of the Federation and Minister of Justice,
Abubakar Malami (SAN).
He
said the latest warning to Nigeria from FATF stemmed from the failure
to implement the Egmont Group’s requirements, which could have serious
consequences, as it will begin by suspending its mission to Nigeria.
Nigeria
was fully admitted into the Egmont Group in 2007, after operational
admittance in 2005, in what was considered one of the biggest
achievements of the Olusegun Obasanjo administration.
Last
July, the group suspended Nigeria as a result of the interference of
the Economic and Financial Crimes Commission (EFCC) in the workings of
the NFIU. It asked the country to amend its law establishing the NFIU to
make it autonomous or get expelled by January 2018.
Besides,
Egmont Group’s decision, by consensus, to clamp down on Nigeria arose
from repeated failures on the part of the NFIU to address concerns
regarding the protection of confidential information specifically
related to the status of suspicious transaction report (STR) details and
information derived from international exchanges.
The
group, however, expressed hope that the Nigerian authorities would
address these concerns to enable it to lift the suspension as soon as
possible.
About 354 participants, representing 112 FIUs, were in attendance at the meeting.
The
Senate has since passed a bill granting the Nigerian unit autonomy, a
move that has been resisted by the EFCC where it is currently domiciled.
Malami’s
media aide, however, said in the statement that the federal government
would do what was necessary to meet the demands for the autonomy of the
NFIU in order to be readmitted to the Egmont Group.
While
acting as president, Professor Yemi Osinbajo (SAN) had constituted a
high-powered ad hoc-committee chaired by the Chairman, Senate Committee
on Anti-Corruption and Financial Crimes Senator Chukwuka Utazi and
mandated the committee to ensure that Nigeria meets the requirements as
demanded by Egmont Group and FATF.
The committee has since concluded its work and submitted its report to the presidency.
However,
in a recent letter by the FATF to the justice minister, its president,
Santiago Otamendi expressed concern over Nigeria’s repeated failures on
its FIU, which may lead to the suspension of FATF’s visit to the
country.
The
purpose of the mission to Nigeria in November is to confirm the
country’s level of commitment to its objectives, especially its
standards.
The
FATF secretariat in France, through a letter dated 29 August 2017
titled, ‘Suspension of Egmont Group Membership Status of the Nigerian
Financial Intelligence Unit,’ also stated that the visit would provide
FATF member nations with the assurance that Nigeria is ready to undergo a
successful mutual evaluation within three years.
The
letter read: “I have been informed by the President of the Egmont Group
of Financial Intelligence Units, Mrs. Hennie Verbeek-Kusters, of the
recent suspension of the Nigerian Financial Intelligence Unit’s Egmont
Group membership status, following the Egmont Group’s decision of July
5th, 2017.
“I
would like to share with you our serious concerns regarding the reasons
that motivated this decision, notably the repeated failures of the FIU
Nigeria to address concerns regarding the protection of confidential
information as well as concerns about the legal basis and the FIU’s
independence via-a-vis the Nigerian Economic and Financial Crimes
Commission (EFCC).
“These
issues are indeed core elements of the anti-money laundering and
counter-terrorist financing framework promoted by the FATF
recommendations.
“These
issues could, therefore, have implications on the Federal Republic of
Nigeria’s membership process for the FATF, if not addressed timely and
properly ahead of the High-Level Mission originally scheduled for 20-21
November 2017.
“The
purpose of this visit is indeed to confirm the Federal Republic of
Nigeria’s high-level commitment to the FATF objectives, including full
and effective implementation of FATF standards, and to provide FATF
members with the assurance that Nigeria is ready to undergo a successful
mutual evaluation within three years.
“In
order for this membership process to move forward, I would encourage
the Federal Republic of Nigeria to take all necessary measures to
address these concerns and ensure that conditions for a successful
High-Level Mission are met before November 2017.
“I
look forward to hearing from you on the steps taken by the Nigerian
Government to further demonstrate your commitment to FATF.”
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