EFCC AND FIGHT AGAINST MONEY LAUNDERING IN NIGERIA BETWEEN 2013 AND 2016
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EFCC AND FIGHT AGAINST MONEY LAUNDERING IN NIGERIA BETWEEN 2013 AND 2016
ABSTRACT
Between 2013 and 2014, the research subject on the EFCC and the fight against money laundering in Nigeria sought to determine the impact of EFCC engagement on the reduction of money laundering in Nigeria.
The study looked at the concept of money laundering and some theories to back it up; primary data was used for the purpose of the research work; and chi-square was used for the purpose of analysis; with a p-value of 0.00,
which is less than the 0.05 level of significance, we concluded that there is a significant effect of EFCC participation in the alleviation of money laundering on Nigeria’s economic development.
Since it was determined that the majority of terrorist attacks on Nigeria were masterminded by money looters in Nigeria, major recommendations on the level of crises in Nigeria have been made.
CHAPITRE ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Money laundering in Nigeria has evolved in recent years; there has been an ongoing struggle against corruption and money laundering. Money laundering is typically prevalent in federal government parastatals. The fight against money laundering has always been a losing struggle, but the EFCC is doing everything they can to reduce it, if not eliminate it.
Money laundering is the act of taking money that is not rightfully yours. The money could be for budgeting purposes. A report dated November 20, 2014, provided by the Chief of Air Staff, A.N. Amosu, stated that Mr. Eze had presented a proposal to the National Security Adviser’s office on November 4, 2014, seeking to supply the improved helicopters to the NAF.
The tone of Mr. Eze’s letter, which we got, indicated that he was heavily involved in procuring and selling armaments to the Nigerian military, which is fighting Boko Haram extremists. For example, on August 18, 2014,
N26.68m was spent in eight transactions; N178.54m was spent in 43 transactions on August 19, 2014; N17.38m was spent on September 3, 2014;
N90.53m was spent on November 11, 2014; N30.70m was spent on November 11, 2014; N13.54m was spent on November 26, 2014; N67m was spent on December 5, 2014; and N10.80m was spent on December 16, 2014. In recent years, there has been widespread money laundering in Nigeria.
In the year 2013, the governor of Benue state, Dr Susuam, was interrogated by the EFCC about some money he was taking out of the country; when the governor was asked about the money,
he told the EFCC of Nigeria that he was going to get foreign pigs for agriculture in Benue state; to this day, there is no agriculture in Benue state.
The Sahara Reporters alleged in July 2015 that an investigative report discovered linkages between Mrs. Alison-Madueke, the Nigerian Petroleum Development Company (NPDC), and Atlantic Energy.
According to this website, “on July 19, 2010, Atlantic Energy Drilling Concept Limited (AEDCNL) was incorporated as a portfolio company,” just three months after Mrs. Alison-Madueke took office as Minister of Petroleum Resources. ”
Atlantic Energy, despite having no prior record of success in the oil and gas sector, announced in April 2011 that it had entered into a Strategic Alliance Agreement (SAA) with the Nigerian Petroleum Development Company (NPDC).” That was six months before AEDCNL was born legally.”
According to one oil industry expert, Mrs. Alison-Madueke awarded a strategic deal with the NPDC to an unknown business like Atlantic Energy “without following any process as stipulated in the government procurement laws and policy.”
The transaction between Atlantic Energy and the NPDC “was an unholy arrangement” between the former minister, top NPDC officials, Kola Aluko, and Jide Omokore, according to the statement. Mr. Omokore was described by him as a “controversial business mogul” and political funder.
In the 2016 administration, Nigerian President Muhammadu Buhari demonstrated his commitment to fighting corruption in all sectors of the country by submitting the “Money Laundering (Prevention and Prohibition) Bill, 2016” to the National Assembly.
Among other things, the bill called for the formation of a Bureau for Money Laundering Control (BMLC) to deal with money laundering cases in the country.
When it is constituted, the BMLC will ensure and supervise that all authorised firms and professions comply with the provisions of the money laundering act.
The law also intends to provide the BMLC full autonomy in carrying out its functions and responsibilities once it is constituted.
According to the Daily Trust, the bureau would be governed by an advisory board led by a chairman who will be nominated by the president on the advice of the Minister of Justice and Attorney-General of the Federation.
Referring to money laundering, the bill states that “a person who knows, ought reasonably to have known or suspects that property has a criminal origin, commits an offence if he conceals, disguises, converts, transfers or removes the property from Nigeria” .
“To conceal or disguise criminal property includes concealing or disguising its nature, source, location, disposition, movement or ownership or any rights with respect to it” , it went on to say.
It also states that a person commits an offence if he enters into or becomes involved in an arrangement that he knows, ought reasonably to have known, or suspects facilitates the acquisition, retention, use, or control of criminally derived property by or on behalf of another person.
The measure also stipulated harsh penalties for anyone found guilty of money laundering, including a sentence of imprisonment for a term of not less than seven years without the option of a fine.
In addition, under the new law, any bank found guilty of money laundering would face a punishment of not less than N25 million, and any designated non-financial firm or profession would face a fine of not less than N10 million if found guilty of a comparable crime.
It also mandated three years in prison or more for anyone who fails to disclose people implicated in money laundering.
The bill is expected to be debated when MPs return to session on February 16. All of this was done to reduce corruption and money laundering in Nigeria.
According to Steel (2006), money laundering is what it is because it demonstrates how “illegal” and “dirty” money is placed through a cycle of transactions and washed in order to emerge as clean/legal money.
This means that the source of this fund (illegal money) is obscured through a series of transfers and trades, and those monies can eventually be disguised as legitimate money.
According to the Dictionary of Finance and Banking (2008), “money laundering” is a procedure in which money obtained unlawfully, whether through theft, drug dealing, or other means, is cleaned so that it appears to have come from a legitimate source. Nobody knows where this “devil” (money laundering) came from, but it is widely assumed that it began with Chinese traders several thousand years ago.
According to Silkscreen (1994) and Steel (2006), it all began with Mafia ownership of Launderettes in the United States, where they needed to verify the genuine source of their funds, as they earned their money from extortion,
prostitution, gambling, and bootleg booze. According to silkscreen (1994), the development of money laundering was also for trade, and Nigeria is the epicentre of money laundering in Africa.
Nigeria’s history of exploitation dates back to when her people were used as slaves under British colonial authority, and it is currently transitioning from a military dictatorship to a democratic form of governance after more than 16 years of military administration. Money laundering is still on the rise, despite the democratic style of governance.
With the high rate of scans in the Nigerian financial sector, law enforcement decided to enact the Money Laundering (Prohibition) Act 2004, which was followed by the Central Bank of Nigeria (CBN) Anti-money laundering compliance manual guidelines from the Economic and Financial Crimes Commission (EFCC, 2003), Independent Corrupt Practices Commission (ICPC, 2000).
All agencies in Nigeria have been given the role of combating money laundering and enforcing all laws dealing with economic and financial crimes.
1.2 STATEMENT OF THE PROBLEM
The EFCC has been attempting to reduce money laundering in Nigeria, but it is tough to battle against the parastater that spawned the EFCC, and the issue of money laundering in Nigeria is on the rise. Including money laundering, drug use, cheating, and theft.
Every new administration promises to tackle corruption, but in the end, they either become corrupt or worsen the situation. People have been crying; who can set things right? The federal government of Nigeria and the EFCC are working hard to combat corruption in Nigeria.
1.3 RESEARCH QUESTIONS
1. Will the EFCC’s involvement in other operations make them more effective at combating money laundering?
2. What roles does Nigeria’s federal government play in combating corruption?
3. Does corruption have a substantial impact on Nigeria’s growth and development?
4. What is the significance of money laundering?
5. What are the most effective methods for preventing money laundering?
6. Does money laundering have an impact on future leaders?
1.4 RESEARCH HYPOTHESIS
H0: The EFCC’s role in the fight against money laundering has no substantial impact on Nigeria’s economic development.
H1: The EFCC’s role in the fight against money laundering has a substantial impact on Nigeria’s economic progress.
1.5 GOALS AND OBJECTIVES OF THE STUDY
The purpose of the research is to determine the following:
1. The EFCC’s efficacy in combating money laundering in Nigeria.
2. The federal government of Nigeria’s involvement in combating corruption.
3. The impact of money laundering on Nigeria’s economic growth and development.
4. The financial drawbacks of laundry.
5. The most effective method of preventing money laundering in Nigeria.
6. The impact of money laundering on the performance of Nigeria’s future leaders.
1.6 THE SIGNIFICANCE OF THE STUDY
The research is particularly fascinating because it reveals the considerable effect of the EFCC’s role in the alleviation of money laundering on Nigeria’s economic progress. The report also demonstrates the most effective approaches to fight corruption in Nigeria.
The report explored the federal government of Nigeria’s involvement in battling corruption and money laundering in Nigeria, citing the major impact of money laundering on Nigeria’s economic progress.
The study also highlighted the basics of money laundering and its history in Nigeria. It also depicts Nigeria’s progress in combating corruption and money laundering.
1.7 SCOPE OF THE STUDY
The study is limited to the history of money laundering in Nigeria and the impact of money laundering on Nigeria’s economic progress. The study focused on the locations in Nigeria with a high percentage of money laundering. The report examines the influence of the EFCC in Nigeria’s development.
The research effort used research questionnaires to collect responses from respondents on the role of the EFCC in the alleviation of money laundering in Nigeria, and chi-square analysis was performed for the purpose of the analysis.
1.8 LIMITATIONS OF THE STUDY
FINANCIAL LIMITATIONS:
The researcher did not have enough money to visit to several agencies responsible for reducing money laundering in Nigeria. However, I was able to obtain useful information from the responses for the purposes of the research.
CONSTRAINTS:
Due to time constraints, the researcher was unable to conduct additional research on the topic in order to present the research work on time. However, he or she was able to obtain meaningful knowledge in a short period of time for the aim of the research task.
1.9 DEFINITION OF TERMS
MONEY LAUNDRING: is a broad word for the process by which criminals mask the original ownership and control of proceeds from illicit activity by making such proceeds appear to have come from a lawful source.
Economic and Financial Crimes Commission (EFCC): The Economic and Financial Crimes Commission (EFCC) is a Nigerian law enforcement organisation that investigates financial crimes such as advance fee fraud (419 fraud) and money laundering.
REFERENCES
1. Advance Fee Fraud and Other Fraud Related Offences Act Cap. A 6 L.F.N. 2004 repealed Advance Fee Fraud and Other Fraud Related Offences Decree No.13 of 1995 Act Cap. A 6 L.F.N. 2004 repealed Advance Fee Fraud and Other Fraud Related Offences Act 2006. 2. Kristina F. Becker (2004), Fact Finding Study: The Informal Economy.
The document can be found at http://rru.worldbank.org/Documents/PapersLinks/Sida.pdf. 2013 HRMARS 183 International Journal of Academic Research in Accounting, Finance, and Management Sciences Vol. 3 (4), pp. 170-184 3.
“The Negative Effects of Money Laundering on Economic Development,” Brent L.B. (2002), International Economics Group Dewey Ballantine LLP for the Asian Development Bank Regional Technical Assistance Project No.5967 Countering Money Laundering in the Asian and Pacific Region. 4. M. Celarier, Privatisation: A Case Study in Corruption, Journal of International Affairs, Volume 50, No. 2. 5.
Central Bank of Nigeria, Money Laundering: Definition, Process, and Impact. Lagos Banking Supervision Department. Oxford University Press, UK, Dictionary of Finance and Banking (2008). 7. Dunia Amos (2011), The Senate passes a law to combat money laundering. Online news magazine The Sun (Nigeria).
URL: http://64.182.81.172/webpages/news/national/2011/mar/02/national-2-03-2011-08.htm 8. Economic and Financial Crimes Commission (Establishment) Act, No. 5 2002 repealed by Act Cap. E1 L.F.N. 2004 repealed by Economic and Financial Crimes Commission (Establishment) Act, No. 1 2004.
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