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Tag: NFIU

  • Nigeria set to exit FATF grey list

    Nigeria set to exit FATF grey list

    The Chief Executive Officer (CEO) of the Nigerian Financial Intelligence Unit (NFIU), Ms Hafsat Bakari, has said the country’s potential exit from the grey list will be later in 2025.

    The NFIU’s Strategic Communications Officer, Mr Sani Tukur, confirmed this in a statement on Friday in Abuja.

    Bakari said that exiting the grey list would not only mark progress for the country but also reinforce its commitment to a more transparent financial environment.

    She noted that the approval of Nigeria’s fifth progress report by the Financial Action Task Force (FATF) was a significant achievement.

    The CEO said the approval represents a milestone in Nigeria’s efforts to strengthen its Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) framework.

    According to her, demonstrates Nigeria’s commitment to international standards in combating financial crime.

    Bakari added that the FATF’s recognition underscores the effectiveness of collaboration among various Nigerian stakeholders in achieving these positive outcomes.

    Earlier, the FATF commended Nigeria’s strides in combating money laundering and terrorist financing, approving the country’s fifth progress report since its inclusion in February 2023.

    The FATF plenary acknowledged Nigeria’s substantial progress in implementing the action plan agreed with its International Cooperation Review Group (ICRG).

    This action plan aims to address deficiencies identified in the 2021 AML/CFT mutual evaluation report.

    The plenary recognised Nigeria’s sustained high-level political commitment to ongoing reforms.

    Additionally, all stakeholders, coordinated by the NFIU, have taken concrete measures to enhance the effectiveness of the country’s AML/CFT regime.

    This progress indicates that Nigeria is on track to complete the action plan before the May deadline and could exit the FATF’s grey list by year-end.

    While reviewing Nigeria’s progress, the FATF plenary also approved the removal of the Philippines from its list of jurisdictions under increased monitoring.

    The Lao People’s Democratic Republic and Nepal were added to the list.

    NAN reports that Bakari led Nigeria’s delegation to the FATF meetings in Paris.

    The FATF is the global body established in 1995 to lead efforts against money laundering, terrorist financing, and proliferation financing.

    The grey list includes jurisdictions under increased monitoring, actively working with the FATF to address deficiencies in their AML/CFT regimes.

  • Money laundering: FG intensifies efforts to beat FATF deadline

    Money laundering: FG intensifies efforts to beat FATF deadline

    The Presidency will take concrete steps to remove Nigeria from the grey list of the global Financial Action Task Force (FATF), before the May 2025 deadline. Mr Femi Gbajabiamila, the Chief of Staff to the President, gave the assurance during a fact-finding visit to the office of the Nigerian Financial Intelligence Unit (NFIU) in Abuja on Tuesday.

    Gbajabiamila pledged that the Federal Government would address the deficiencies that led to Nigeria’s listing. He made the pledge in response to a request by Hafsat Bakari, the Director and Chief Executive Officer of NFIU, who sought high-level intervention to meet the implementation deadline of the FATF action plan.

    Recall Nigeria was placed on the FATF Grey List on February 24, 2023. This was due to rising capital inflows and shortcomings in combating money laundering, terrorism and arms financing. The FATF is an independent intergovernmental organisation that promotes policies to protect the global financial system. It evaluates jurisdictions based on its Anti-Money Laundering/Counter Financing of Terrorism and Proliferation (AML/CFT/P) standards.

    Gbajabiamila acknowledged the progress made by NFIU by implementing 30 per cent of the action plan to address identified deficiencies. He stressed the need for accelerated efforts to complete the remaining tasks.

    “I am a firm believer that no matter how much you achieve, one thing can destroy everything you have achieved. One rotten egg can spoil the whole basket. We have nine months left to exit the Grey List, and even being on that list is bad enough – that is not what we want for our country.

    “Therefore, we will do everything we need to do because May 2025 is around the corner. You must furnish us with the information and the boxes that we need to tick. We do not want a fire brigade approach because May is around the corner; this is a high priority,” he said.

    Gbajabiamila also assured the management of NFIU of continued collaboration with his office to enable it protect Nigeria’s financial system from terrorism financing, money laundering, arms proliferation and other violent crimes. The NFIU operates under the supervision of State House.

    “I know there’s much to be done and we are here to collaborate with you to ensure that ultimately we can get to where we are supposed to be,” he said.

    The Chief of Staff also commended the agency for implementing the recent Supreme Court interpretation on local government autonomy.

    Highlighting NFIU’s achievements, Bakari noted that the agency had fostered inter-agency cooperation, connecting over 45 agencies to its intelligence sharing platform. She said 18 state internal revenue services had been connected to boost domestic revenue mobilisation in sub-national governments.

    “One of the key projects we have commenced is the implementation of a monetary network framework following the recent Supreme Court judgment on the fiscal autonomy of local governments. This would enable the government to ensure that resources made available have an impact on the citizens,” Bakari stated.

    The NFIU boss pointed out that NFIU had deployed significant human and financial resources to address identified deficiencies.

    “Capacity building is essential to stay ahead of evolving methods and typologies of financial crime,” she said.

    Gbajabiamila also visited Nigeria Extractive Industries Transparency Initiative (NEITI) and the National Council on Climate Change (NATCCC) as part of his ongoing engagements with agencies under the supervision of State House.

  • Tinubu appoints new head of NFIU

    Tinubu appoints new head of NFIU

    President Bola Tinubu has approved the appointment of a new Director and Chief Executive Officer of the Nigerian Financial Intelligence Unit (NFIU).

    She is Ms Hafsat ABubakar Bakari, a former Deputy Director in the NFIU; she is taking over from Modibbo Hamman-Tukur.

    This is contained in a statement by Chief Ajuri Ngelale, Special Adviser to the President on Media and Publicity, on Tuesday in Abuja.

    Ngelale said that Bakari would serve on acting capacity until her confirmation by the Senate.

    He said that the new NFIU head is a lawyer and financial intelligence expert with years of experience in anti-money laundering, counter-terrorism financing, and counter-proliferation financing.

    The presidential spokesman added that Hafsat was at different times,  the Head of the General Services Unit; Head of the Strategy and Reorientation Unit, and Head of the Board Secretariat of the Economic and Financial Crimes Commission (EFCC).

    ”The President anticipates that Bakari will bring her wealth of experience and expertise to full discharge in this critical role.

    ”Especially in view of his administration’s war against illicit financial flows and other sharp practices currently prevalent in segments of the nation’s foreign exchange markets.”

  • CAC to strike off 100,000 companies over annual returns

    CAC to strike off 100,000 companies over annual returns

    The Corporate Affairs Commission (CAC) says it will strike off one hundred thousand companies that have failed to file annual returns in the last ten years.

    The Registrar-General of the CAC, Alhaji Garba Abubakar, in a statement, said this while speaking at a Training Workshop on the Use of the Beneficial Ownership Register (BOR) in Lagos.

    Abubakar, however, said that the Commission would soon send notices of striking off to the affected companies before embarking on the action as enshrined in section 692 of the CAMA,2020.

    He explained that the companies were, however, entitled to be relisted upon payment of their outstanding debts and an order of a court, as provided by the law.

    Abubakar therefore advised companies to ensure timely payment of their annual return to avoid being struck off.

    On the BOR, he said it was built by CAC with the support and assistance of the World Bank.

    The registrar-general stressed that the register would go a long way in curbing corruption, money laundering, and terrorism financing.

    He therefore enjoined stakeholders, especially investigating agencies, legal practitioners, journalists, and civil society organisations, to utilise the BOR in discharging their responsibilities.

    The Chairman of the Nigerian Bar Association Section on Business Law, (NBA-SBL), Dr Adeyeye Adefulu, commended the CAC for recording yet another important milestone in its history.

    Adefulu therefore said that the NBA-SBL would sustain its existing cordial relationship with the Commission and charged members to make good use of the knowledge acquired at the training for the benefit of the Nigerian economy.

    Also speaking, the President of the Association of Bureau De Change Operators of Nigeria (ABDCON),Aminu Gwadabe, underscored the importance of the BOR in the fight against money laundering and terrorism financing.

    Gwadabe, advised professionals to apply due diligence while dealing with their clients.

    Representatives from the Special Control Unit against Money Laundering (SCUML), the Nigeria Financial Intelligence Unit (NFIU), and the Securities and Exchange Commission (SEC) attended the event.

  • CBN sends out strong warning over abuse of new Naira notes

    CBN sends out strong warning over abuse of new Naira notes

    The Central Bank of Nigeria (CBN) has cautioned against abuse of the newly redesigned Naira notes and warned that it is working with security agencies in the country to prosecute sellers and abusers of Naira.

    The apex bank also assured that the queues currently piling up at the ATMs will disappear soon and that commercial banks in the country have been directed to pay the redesigned Naira notes over the counter.

    In a statement by Osita Nwanisobi, CBN Director, Corporate Communications, the apex bank also noted the reported cases of unregistered persons and non-bank officials swapping banknotes for members of the public, purportedly on behalf of the CBN.

    “We wish to state unequivocally that, contrary to the practice of these unpatriotic persons, it is unlawful to sell the Naira, hurl (spray), or stamp on the currency under any circumstance whatsoever,” Nwanisobi stated.

    The statement reads in full: “The Central Bank of Nigeria (CBN) has observed, with grave concern, the activities of persons who sell the newly redesigned banknotes and those who flagrantly abuse the legal tender by hurling wads of Naira notes in the air and stamping on the currency at social functions.

    “We have equally noticed the queues at Automated Teller Machines (ATMs) across the country and an upward trend in the cases of people stocking and aggregating the newly introduced banknotes they serially obtain from ATMs for reasons best known to them.

    “Also worrisome are the reported cases of unregistered persons and non-bank officials swapping banknotes for members of the public, purportedly on behalf of the CBN.

    “We wish to state unequivocally that, contrary to the practice of these unpatriotic persons, it is unlawful to sell the Naira, hurl (spray), or stamp on the currency under any circumstance whatsoever.

    “For the avoidance of doubt, Section 21(3) of the Central Bank of Nigeria Act 2007 (As amended) stipulates that “spraying of, dancing or matching on the Naira or any note issued by the Bank during social occasions or otherwise howsoever shall constitute an abuse and defacing of the Naira or such note and shall be punishable under the law by fines or imprisonment or both.”

    “Similarly, Section 21(4) states that “It shall also be an offence punishable under Sub-section (1) of this section for any person to hawk, sell or otherwise trade in the Naira notes, coins or any other note issued by the Bank.”

    “Accordingly, the Central Bank of Nigeria (CBN) is collaborating with the Nigeria Police, Federal Inland Revenue Service (FIRS), the Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU) to address the unpatriotic practice.

    “We, therefore, warn Nigerians, particularly those at social functions such as birthdays, weddings and funerals, to desist from disrespecting the Naira or risk being arrested by law enforcement agencies.

    “While reiterating our commitment to Nigerians to ensure the effective distribution of the newly introduced Naira banknotes, we urge them to exercise patience as the CBN is working assiduously to address the challenge of queues at ATMs.

    “In line with this resolve, the Govenor, Mr. Godwin Emefiele, has directed deposit money banks (DMBs) to commence the payment of the redesigned Naira notes over the counter, subject to a maximum daily payout limit of N20,000.

    “We also admonish members of the public to embrace and adopt other payment channels for their transactions.

    “The Naira is our legal tender and symbol of national pride. Therefore, let us respect it and handle it with care”.

  • Nigerians warned against huge physical cash withdrawals

    Nigerians warned against huge physical cash withdrawals

    The Nigeria Financial Intelligence Unit (NFIU) has warned both public and private entities against massive cash withdrawals.

    The Director and Chief Executive Officer of the agency, Mr Modibbo Hamman Tukur, gave the advisory in a statement made available to newsmen in Abuja on Thursday.

    He spoke on the state of the nation’s security threats and financial liquidity.

    HammanTukur advised all federal Ministries, Departments, parastatal Agencies (MDAs), State Governments, Local Government Councils, corporate bodies as well as, civil servants, public and private officers to embrace the cashless policy of money transactions to deepen national security.

    This is to strengthen the country’s security and financial systems, he explained.

    According to him, the Federal and State Governments as well as the 774 local government councils have made cash withdrawals of about N200 billion, N156 billion and N120 billion, respectively, from 2015 to date.

    To curb this excesses, the Federal Government has directed and ordered the stoppage of “direct cash withdrawals by public institutions and officers” with effect from March 1, this year, HammanTukur stated.

    He therefore advised all stakeholders to adopt new technologies of financial transactions and abide by the withdrawal limits or thresholds earlier prescribed by the Central Bank of Nigeria (CBN) for corporate and individual transactions.

    It would be recalled that the CBN had in December 2022 prescribed a threshold of N5 million only for corporate accounts and N500,000 only for individuals per week.

    HammanTukur however explained that no infractions have been recorded so far, but noted that cash withdrawals are still higher than deposits.

    “Liquidity is needed to finance our markets”, he noted, adding that there is no threat to the corruption and money laundering crusade yet.

    Besides, the director assured that any body with genuine need for huge cash transactions would seek presidential approval as there was no “standing waiver” on this policy.

    While warning that the “guideline is not reversible”, he stressed that any cash withdrawal beyond the approved limit would trigger a red flag by the relevant anti-graft agencies.

    He reasserted that Nigeria has been designated as a non-cash society by the World Bank, IMF and ECOWAS, among other stakeholders, with effect from March 1.

    This is in addition to the categorisation of Nigeria as a “high risk” country by the concerned parties because of the enormous security challenges facing the nation, HammanTukur said.

    “We can’t flow with politicians” because of obvious complications, while the set March 1 deadline was sacrosanct, according to him.

    He however expressed optimism that the cash transactions would drop from the current N3 trillion to about N1 trillion when the policy became effective.

    The NFIU director reminded Nigerians that three years imprisonment, payment of equivalent value of money involved or both punishments awaited violators of the cashless policy.

    HammanTukur underscored the teeth of the “Rnforcement, guidelines and policies for mitigation of money laundering, terrorist financing, proliferation of weapons and prevention of predicate crimes” Act of 2022.

    He particularly cited Sections 2 and 22 of the NFIU laws of 2022 to buttress his threat.

  • CBN blows hot over abuse after redesign of Naira notes

    CBN blows hot over abuse after redesign of Naira notes

    The Central Bank of Nigeria (CBN) on Tuesday in Abuja sounded a note of warning to those abusing the Naira notes, stressing they are liable to go to jail.

    CBN warned that the law banning the “spraying’’ and the stepping on the naira, especially at social gatherings is still in force and offenders are liable to six months imprisonment or a fine of N50,000.

    TheNewsGuru.com (TNG) reports the warning is coming after the apex bank carried out a redesign of some denominations of the Naira.

    Section 21(3) of the CBN Act 2007 provides that mishandling of the naira is a punishable offence.

    Principal Manager, Currency Operations Department at the CBN, Ms Ngozi Etim, who gave the warning, said the apex bank was working with the police, the FIRS, the EFCC and the Nigerian Financial Intelligence Unit (NFIU) to curb the abuse.

    She condemned the “spraying’’ of money in public, adding that the envelope remained the best and acceptable means of extending goodwill at events.

    “Money should not be squeezed but be put in envelopes. Oil should not be allowed to touch money; keep it neat like you keep your clothes.

    “You do not dirty your clothes and you do not keep your clothes on the ground, so, there is need to keep our naira well,’’ she said.

    She added that the CBN Act empowered it to arrest those who abused the naira.

    Etim stressed that the naira remains the pride of the nation and must be kept clean at all times.

    In his remarks, CBN’s Director, Corporate Communication, Mr Osita Nwanisobi, urged Nigerians to always treat the naira with care.

    Nwanisobi condemned the idea of hurling wads of naira notes in the air and stamping on the currency at social functions.

    “There have also been cases where people mishandle the naira, deface it, or hawk it at parties.

    “Contrary to the practice of these unpatriotic persons, it is neither cultural nor moral for people to disrespect the currency, which citizens trade in,’’ he stressed.

    There have been videos of famous Nigerians, including politicians, subjecting the naira to abuse.

    Naira notes have also become items of trade at garages and motor parks in different parts of the country, especially during festive periods.

    The CBN has, however, declared that anybody caught abusing the naira would be punished.

  • Court dismisses suit to grant states power to manage LG funds

    Justice Inyang Ekwo of the Federal High Court in Abuja has dismissed a suit filed by 36 states, challenging the legality of the Nigerian Financial Intelligence Unit, NFIU, Guidelines, which came into effect on June 1, 2019.

     

    The suit marked (FHC/ABJ/CS/563/2019) was filed through their Attorneys General and the Nigeria Governors’ Forum, NGF.

     

    The NFIU 2019 guidelines required among others, that the States/Local Governments Joint Accounts should be used only for receiving funds and subsequently transferring them to Local government accounts only.

     

    The NFIU claimed that the guidelines, which also limit daily cash withdrawal from the State/LG joint account to N500,000 are intended to reduce “crime vulnerabilities created by cash withdrawal from local government funds throughout Nigeria effective from June 1, 2019.”

     

    TheNewsGuru.com (TNG) reports that listed as defendants in the suit are the Attorney General of the Federation (AGF), the NFIU and the Nigeria Union of Local Government Employees (NULGE).

     

    They argued among others that the NFIU guidelines: known as “the NFIU Enforcement and Guidelines to Reduce Crime Vulnerabilities Crafted by Cash Withdrawal From Local Government Funds Throughout Nigeria,” particularly provisions 1 to 6 and the penalties prescribed are ultra vires the power of the NFIU under Sections 3 (1) and 23(2) (a) of the Nigerian Financial Intelligent Unit Act, 2018 and therefore unconstitutional.

     

    In the judgement on Monday, Justice Ekwo held that he is unable to see where the guidelines contradict the provisions of sections 7(1), (6) (a) and (b) of the Constitution.

     

    The judge added that the guidelines also did not conflict with the provision of Section 162(6) of the Constitution, which creates the State Joint Local Government Account, into which allocations to the Local Government Councils of the state from the Federation Account and from the government of the state are paid.

     

    He said that the guidelines did not contradict Section 162(8) of the constitution which prescribed that the amount standing to the credit of the local government council of the state shall be distributed among the local government councils of that state on such terms and in such manner as may be prescribed by the House of Assembly of the state.

     

    Justice Ekwo added that the provisions of the NFIU guidelines also do not contradict the provisions of the 4th Schedule to the 1999 Constitution which prescribes the functions of a Local Government Council.

     

    Noting that “ duty of the court is limited to expounding the law and not expanding it,” the judge said: “On the whole, I see the provisions of the guidelines of the 2nd defendant as seeking to direct the monitoring of accounts, transfers and any other means of payment or transfer of funds of local government councils as provided for in Section 3 (1) (r) of the Act of the NFIU.

     

    “It only limits cash withdrawal made from any Local Government Account anywhere in the country to amount not exceeding N500,000.00 (Five Hundred Thousand Naira) per day.

     

    “Any amount higher than that can be done using other methods of banking transaction save cash.

     

    “Unless it can be shown that there is any provision of the 1999 Constitution (as amended) which these provisions of the 2nd defendant’s guidelines have contradicted or conflicted directly and practically, then the issue of unconstitutionality cannot be said to arise.”

     

    Justice Ekwo said he found that there was no provision in the NFIU’s guidelines that has contravened the provisions of Sections 7(1), (6) (a) and (b), 162 (6), (7) and (8), and the 4th Schedule to the 1999 Constitution (as amended).

     

    “I also find that the case of the plaintiffs has not been established and I so hold. I find, in the end, that the case of the plaintiffs lacks merit and ought to be dismissed and it is hereby dismissed,” the judge said.

     

    Earlier, Justice Ekwo struck out the name of the NGF as a co-plaintiff in the suit on the grounds that it lacked the locus standi to file the suit.

  • Financial autonomy: NFIU can’t dictate how we’ll handle LG funds – Governors

    Those referring to local government as the third tier of government get it wrong, the Nigerian Governors’ Forum (NGF) said on Sunday.

    The NGF said the local government is not recognised by the 1999 Constitution as a tier of government.

    It said only the federal and state governments are recognised.

    NGF chairman and Ekiti State Governor Dr. Kayode Fayemi said the guidelines by the Nigerian Financial Intelligence Unit (NFIU) on the financial autonomy for local government were issued by an agency oblivious of the provisions of the constitution.

    Fayemi said only a constitution amendment can change the status quo.

    He said any Constitution review in that direction will also require the approval by two-thirds of the 36 Houses of Assembly.

    Fayemi told reporters in Lagos that the rift over the NFIU’s proposals and the controversy over government autonomy had shifted to the court, adding that parties in the dispute cannot take further steps outside the constitution.

    Rejecting the unconstitutional description of local council as a third tier, he said: “As far as we are concerned, the position of the NGF on the issue is the position of the law.

    “There is no law that has been passed in the country on local government autonomy. There have been several attempts, but it has never gotten 24 states Houses of Assembly out of the 36 in the country to make it happen.”

    Fayemi maintained that Nigeria is a two-tier federation, contrary to the erroneous belief in some quarters.

    He said: “Nigeria is not a three-tier federation; the talks about Nigeria being a three-tier federation is a distortion; it is just an aberration that we even have to go to Abuja to get approval on local governments.

    “If you want to create 200 local governments, it is your business because you and your people in your state should figure it out. It should not be the business of Abuja because that for me is surreptitious unitarism.

    “You cannot go behind to do what the constitution does not allow you to do and that was what informed our position at the NGF over the ridiculous instruction to banks.

    “You know that you cannot confront us; you are now going to bankers. What is the business of the banks with the accounts maintained by local government as long as the accounts are funded and the proper persons run the accounts?

    “Besides that, what is the business of the NFIU on local government funds? When you read the NFIU law, NFIU monitors what is going on in the banking system, internationally and locally and if you have a specific case of money laundering, please bring it up. You cannot have a general rule to address a unique problem.

    “You can’t because you want to fight money laundering; you now say that states and local governments cannot run joint accounts, which is in the constitution of Nigeria. Section 162 and we have a case pending in court on the issue.”