This is just as there are indications
that the extremist group has been involved in recruiting suicide bombers
from refugee camps run by the Polisario Front in Algeria.
NFIU sources told Saturday PUNCH
that sympathisers of the group had been exploiting monetary practices
embedded in Islamic culture, such as Zakat, donation to charities and
alms-giving to channel funds to it.
It was learnt that the ease with which
terror sponsors had been moving money for terror operations through the
banks had also made the job more difficult.
“Being persuasive preachers, the terror
commanders often persuade some Muslim Ummah to give Zakat to their
jihadist cause. This brings in a lot of money used in terror operations.
Security agencies are finding difficult to track this because it leaves
no paper trail or bank details,” a source stated.
Saturday PUNCH also learnt that
some financial institutions were also being unwittingly used to transfer
funds meant for terrorist activities by sponsors and sympathisers of
these groups, who move such money in bits to avoid detection.
These banks are said to have ignored the
provisions of the law to help customers to transfer money in and out of
the country without filing the compulsory suspicious transaction
reports where necessary.
Under the Money Laundering (Prohibition)
Act, 2011, the Terrorism (Prevention) Act, 2011, Central Bank of
Nigeria Anti-Money Laundering/ Combating the Financing of Terrorism
Regulation, 2009 (as amended) and other AML/CFT Guidelines, banks and
other financial institutions must render suspicious transaction reports
to the NFIU, properly identify persons conducting transactions and
maintain a paper trail by keeping appropriate records of their financial
transactions.
The records will enable law enforcement
and regulatory agencies to pursue investigations of criminal, tax and
regulatory violations and provide useful evidence in prosecuting money
laundering and other financial crimes. The legal provisions were
designed to help identify the source, volume and movement of currency
and other monetary instruments transported or transmitted into or out of
Nigeria, or deposited in financial institutions in the country.
The laws impose criminal liability on a
person or financial institution that knowingly assists in the laundering
of money or fails to report suspicious transactions conducted through
it.
Saturday PUNCH learnt that many
financial institutions had neglected to file reports of suspicious
transactions with the NFIU, in order not to lose the accounts of high
profile clients who move huge funds.
Some of these funds are believed to be proceeds of crime or money laundering, one of the sources said.
“Sometimes, the banks assist their
clients to transfer huge amounts in small lodgements to avoid filing a
suspicious transaction report as mandated by law; we know all these
tricks and we are working to deal with them,” the security official
said.
Findings indicated that the terror cells
also rely on foreign donations from jihadist organisations in Iran,
Lebanon, Libya, Yemen and Saudi Arabia camouflaging as charity groups.
NFIU had also expressed concern over the
reluctance of banks to file STR, noting that the insurance industry was
more compliant with regard to money laundering and financing of
terrorism.
The Director of the unit, Mrs. Juliet
Ibekaku, made the observation at the Sensitisation Programme on
Anti-Money Laundering and Combat of Financing of Terrorism Control
Measures for Insurance Companies, which held in Lagos recently.
The programme was jointly organised by
the NFIU and the National Insurance Commission to deepen knowledge on
money laundering and combating financing terrorism issues and to make
the insurance sector and the companies understand what their roles are
in this regard.
“Compared to other sectors, the
insurance sector is not that bad, especially when you compare it with
the banking sector; even though that we are yet to conduct a risk
assessment of whether there is huge money laundering or financing of
terrorism risks associated with the insurance sector.
“I will say that the risk is not as high
as what we have in the banks. As such, you might not see the level of
fraud as we see in the banking sector in the insurance sector.
“What we did at NFIU was to make sure
that the banks are reporting first and this we have been doing for the
past five years. However, we have realised that there is need for the
insurance companies also to come on board as required by the law,” she
added.
The Financial Action Task Force had
listed Nigeria as one of the countries that had taken significant steps
against money laundering and financing terrorism by enacting the Money
Laundering (Prohibition) (Amendment) Act and the Terrorism (Prevention)
(Amendment) Act, 2013, in line with international standards.
FATF in a report challenged Nigeria to address the deficiencies in its action plan.
When contacted, the Head of Media and
Publication of the Economic and Financial Crimes Commission, Mr. Wilson
Uwujiaren, said that enquiries should be sent to the NFIU which had
statutory powers to monitor compliance of the banks with financial
regulations.
“I have not seen anything like that but
the right agency to talk to is the NFIU. It is the NFIU that would tell
you authoritatively whether banks are complying or not,” he stated.
Ibebaku neither picked calls to her phone nor responded to a text message on Thursday.
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