Banks shielding money launderers in Nigeria -Magu

Financial institutions in Nigeria, especially banks, may soon come under the scrutiny of eagle eyes detectives attached to the Economic and Financial Crimes Commission, (EFCC), if the statements of the Commission’s chair, Ibrahim Magu, were anything to go by.

Speaking yesterday at a workshop on “Money laundering and Combating the Financing of Terrorism,” organized by the Chartered Institute of Bankers of Nigeria (CIB), in Lagos State, Magu disclosed that some banks and financial institutions have refused to comply with  regulations on money laundering and other related offences.

According to him, some bank officials were in the habit of opening accounts for government officials even after the introduction of the Treasury Single Account (TSA), thereby allowing government funds to be diverted.

His words: “There are several bank accounts that are not linked to BVN and are still active. Some micro-finance banks indulge in collecting huge sums of cash for a short fixed term deposit with attractive high interests. Application of penalties ranging from fine to revocation of license by regulators shall send a strong signal to erring banks and other reporting organizations. Regular review of the legal framework to move with time and accommodate new emerging trends of money laundering is key.”

He advocated for increased sensitization and awareness campaigns within the government and private business sector as a counter- measure against money laundering.

Describing money laundering as a threat to developing and developed countries, the anti-graft warlord said that it was saddening and tragic that some banks had not been reporting suspicious transactions in line with statutory regulations.

Magu, who was represented by Garba Dugum, Head of Operations, Lagos Zonal Office, kicked against the activities of some Bureau De Change , (BDC) operators,  saying : “ Most of these BDC operators are not licensed, and usually do not keep records.  You can imagine when $2million was carried cash and given to an unregistered BDC man on the street.”

Magu further said that the Commission had since the beginning of the year, recorded several convictions in corruption, money laundering, oil pipeline vandalism and related offences. He also stated that coordinated national and international steps must be taken to combat the menace of money laundering.

The organisers presented a plague to Magu in appreciation of his relentless efforts towards stamping out corruption and economic crimes from the country.