The Securities and Exchange Commission (SEC) has signed a Memorandum of Understanding (MoU) with the Nigerian Financial Intelligence Unit (NFIU) to combat Ponzi schemes and fraud in the capital market.
Mrs Mary Uduk, the Acting Director-General of SEC, disclosed this in a statement in Abuja on Wednesday.
She said the collaboration was necessitated by the need for SEC and NFIU to close ranks in the face of “insider dealings, reawakening of Ponzi schemes, cybercrime and other fraudulent activities that have engulfed the market in the last few years”.
Uduk said the commission was paying close attention to digital transactions and was in the process of amending its laws to capture such activities.
According to her, SEC already has regulations prohibiting shell companies from operating in the capital market.
She stated that under the collaboration, NFIU would assist the commission in tracking suspicious transactions as they occur.
“If we have solutions that will help us track transactions, it will greatly reduce the incidence of insider dealings.
“We will be very willing to collaborate with you on that in our determination to ensure that our markets are efficient and transparent and all investors are protected’’, she said.
The MoU, she said, covers training, secondment of middle cadre officers between the organisations, cross-border monitoring, repatriation of stolen funds from the capital market and prosecution of offenders, among others.
On the rising incidence of Ponzi schemes in the country, Uduk stressed the need for more public sensitisation to ensure that unsuspecting Nigerians do not continue to lose their hard-earned money.
In his remarks, Mr Modibbo Tukur, the Director of NFIU, assured SEC that the Agency would continue to play its part in ensuring that the financial system was safe for Nigerians to operate.
He disclosed that NFIU was making efforts to ensure that the financial system was rid of shell companies, adding that, for companies to exist, they should have physical addresses.
“If anyone establishes a company, it has to be a company indeed and we have to be firm on this.
“This has become more important now given the roll out of the Economic Community of West Africa States (ECOWAS) single currency, because with that, we know that capital and investments will move across borders and it is a single currency.
“So, we have to step up regulation to avoid fraudulent transactions. We will begin by September and some companies will have to be deregistered if they do not meet the criteria.
“We will publish the parameters and also give them enough time to regularise after which those that do not comply before the deadline will be shut down.
“If you have an empty company hanging in the system, it is a potential danger and we should not allow it to thrive,” Tukur said.
Tukur added that when the NFIU began its due diligence on the shell companies, the information would be shared with SEC for further action.
He commended SEC on its regulation barring shell companies from operating in the capital market.
Tag: NFIU
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SEC, NFIU sign MoU to tackle ponzi schemes, fraud
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FG’s NFIU policy will ground operation of 774 LGs, CNPP warns
Conference of Nigerian Political Parties (CNPP) has warned that the new policy introduced by Nigeria Financial Intelligence Unit (NFIU) that local governments can’t withdraw beyond half a million naira for capital expenditure will cripple the third tier of government.
CNPP faulted the federal government’s interference in the running of the councils, saying Section 7 of the 1999 Constitution gave the states the powers to regulate the councils’ operations through the oversight functions of the Houses of Assembly.
The political body added that as much as it supported financial autonomy for effective operations of the councils, it insisted that the NFIU policy, limiting the expenditure of the councils, would ground the local governments and increase poverty level among the citizens.
Speaking in Ado Ekiti yesterday, the CNPP Chairman in Ekiti, Deacon Olu Akomolafe, said the NFIU policy, apart from being ill-motivated, also tramples on the constitution, which gives the states regulatory power over the councils.
Akomolafe urged the federal government to look for a better and more effective way to fight corruption at the local government level.
He urged the Nigeria Governors’ Forum to approach the court to contest the NFIU policy, since he described it as anti-people, if the option of dialogue fails.
“The NFIU policy limiting withdrawals by any council to fund capital projects to N500, 000 is a bad policy and antidemocratic. It will ground the operations of the LG administration.
“With this policy in operation, the LGs would only be effective in the payment of salaries of workers and the capital projects that could have complemented the efforts of the states will be ineffective and people at the grassroots will suffer.
“It is not even right for the FG to meddle in the running of the councils, because section 7 of the 1999 Constitution puts the LGs under the control of states.
“If the FG is saying that the states can’t control the local governments, what of the 10 percent being given as reimbursement to councils monthly?
“Are they saying the states have no say about how such money is spent,” he asked?
Setting agenda for Governor Kayode Fayemi on how to run a distinct Nigeria’s Governors’ Forum, Akomolafe urged the governor to resist attempt by anybody to divide the forum along parties, ethnic and caucuses lines.
“Our dear governor must resist division and prevent the recurrence of Rotimi Amaechi- Jonah Jang debacle in Governors Forum, so that they can collectively fight for intervention funds to help the states pay salaries and fund capital projects that will benefit the people”.
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Senate confirms Tukur as NFIU pioneer Director
The Senate on Thursday confirmed the appointment of Modibbo Tukur as the pioneer Director of the Nigerian Financial Intelligence Unit (NFIU).
This followed a presentation of report of the Senate Committee on Anti-Corruption and Financial Crimes by its Chairman, Sen. Chukwuka Utazi, at plenary.
President Muhammadu Buhari had in a letter to the President of the Senate, Dr Bukola Saraki dated Jan. 7, nominated Tukur as the director of the NFIU.
The request for confirmation was in accordance with Section 5(1) of the Nigerian Financial Intelligence Unit (NFIU) Act 2018.
In his remarks, the President of the Senate, Dr Bukola Saraki congratulated Tukur on his appointment.
Saraki, however, urged him to remain neutral in his duties, as well as ensure professionalism at all times.
He said, “we moved for the independence of the NFIU which will help in the fight against corruption. I thank you all who participated in the creation of this unit.
“As has been said by some of our colleagues, this is a very important unit.
“We must ensure the neutrality, professionalism & independence of this unit because whatever it does reflects on the country in the fight against corruption,” he said.
He urged the director to do the country proud in the discharge of his duties.
The News Agency of Nigeria(NAN) reports that the Senate had on March 7, 2018, passed the NFIU Bill,which was assented to by President Muhammadu Buhari.
The NFIU was under the Economic and Financial Crimes Commission (EFCC), before the bill for its independence was assented to on July 11, 2018 by President Muhammadu Buhari.
NAN
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Buhari nominates new director for NFIU
President Muhammadu Buhari has nominated Modibbo Hamman-Tukur as the director of the Financial Intelligence Unit (NFIU).
The appointment, Mr Buhari said, is in accordance with the provision of Section 5(1) of the Nigerian Financial Intelligence Unit (NFIU) Act 2018.
The announcement was made Monday via a statement by Mr Buhari’s spokesperson, Femi Adesina.
The statement said the nomination was contained in a letter dated January 7, to the Senate President, Bukola Saraki, seeking the confirmation of the nominee by the Upper Chamber of the National Assembly.
”Tukur, from Adamawa State, is a holder of Master of Science (MSc) degree in International Business.
”He is currently an Assistant Director in the NFIU, and has vast international experience in illegal assets recovery,” the statement said.
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EFCC grants NFIU autonomy
The Acting Chairman, Economic and Financial Crimes Commission (EFCC), Ibrahim Magu on Wednesday told the Senate that the Nigeria Financial Intelligence Unit ( NFIU)has been granted autonomy.
Magu who appeared before the Senate Committee on Anti-Corruption and Financial Crimes to defend the performance of 2017 budget of his agency promised to submit details of recovered loots by the agency to the committee.
He told the committee that starting from January 1, 2018, NFIU would begin operation as independent organization.
The Egmont Group suspended Nigeria as a result of alleged interference of the EFCC in the workings of the NFIU.
It asked the country to amend its law establishing the NFIU to make it independent or be prepared to be expelled by January 2018.
Magu told the committee that the agency has a separate budget from that of the EFCC.
He said, “We have allowed NFIU to go. They are operationally autonomy independent of EFCC. They will be independent of EFCC. We have given them financial autonomy. N800 million was proposed for the agency in 2018 budget.
Chairman of the Committee, Senator Chukwuka Utazi said that the N800 million proposed for NFIU is not enough for the body to conduct its work.
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EGMONT Suspension: Senate passes Bill to separate NFIU from EFCC
The Senate on Thursday passed into law a bill, which seeks to make the Nigerian Financial Intelligence Unit (NFIU) autonomous.
TheNewsGuru.com reports that the bill was presented on the floor of the Senate seven days ago.
The NFIU bill becomes the fastest passed by the Eighth Senate since its inauguration on June 9, 2015.
TheNewsGuru.com reports that the when the bill receives concurrence from the House of Representatives and assented to, the NFIU will cease to be a department of the Economic and Financial Crimes Commission (EFCC).
The accelerated treatment given to the bill may have been informed by the suspension of Nigeria by Egmont Group of Financial Intelligence Unit.
TheNewsGuru.com reports that the NFIU bill was passed against strong opposition mounted by the EFCC.
The Senator Chukwuka Utazi-led Senate committee on Anti-Corruption and Financial Crimes was said to have held a public hearing on Wednesday, where the EFCC strongly opposed the passage of the bill.
Director of NFIU Francis Oka-Phillips Usani, who was said to have attended the public hearing, was quoted as opposing the bill.
Usani was said to have told the committee that the Egmont Group did not ask Nigeria to set up the intelligence unit as an agency.
The NFIU boss was said to have explained to the committee that the unit was part of anti-graft agencies in parts of the world.
He was said to have added the unit had generated intelligence information for security agencies.
Usani, it was learnt, said that there might be a serious crisis that may force the Egmont Group to expel Nigeria if the Senate went ahead to create a full-fledged agency for NFIU.
The Senate appeared to have received the committee’s report ahead of the public hearing.
Deputy Senate President Ike Ekweremadu, who presided when the bill was considered and passed, noted that when signed into law, the bill would strengthen the anti-corruption war.
Ekweremadu said the international community would begin to take Nigeria seriously on the anti-graft war.
He stated that with the passage, the suspension of Nigeria by Egmont Group will be lifted.
Ekweremadu said: “I like to thank all of us for making sure that we passed this bill. This is a step towards fighting corruption in Nigeria. I hope the international community will take us seriously and lift the suspension. We want to ensure that there is no undue control over the activities of NFIU. What we have done is in consonant with what is done in other parts of the world.”
Adopting a motion last Wednesday, the Senate resolved to pass a law creating a substantive and autonomous NFIU and make the unit legally and operationally autonomous with powers for the employment, reward, training, promotion and discipline of its workforce independently.
Chairman, Senate Committee on Media and Public Affairs Senator Aliyu Sabi Abdullahi had while briefing Senate Correspondents, explained that the Senate was committed to enacting the law in good time to boost the anti-corruption fight of the Federal Government.
Abdullahi said if properly reorganised, the agencies that would benefit from the activities of the Egmont Group will include the Central Bank of Nigeria (CBN), the Nigeria Customs Service (NCS), the Independent Corrupt Practices and other related offences Commission (ICPC), the Economic and Financial Crimes Commission (EFCC), the Nigeria Immigration Service (NIS), the Federal Inland Revenue Service (FIRS), the Securities and Exchange Commission (SEC) and many other relevant government agencies.
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Egmont Suspension: Senate begins move to separate NFIU from EFCC
…How false petition led to Nigeria’s suspension
Bothered by the recent suspension of Nigeria from the Egmont Group of Financial Intelligence Units, some senators on Wednesday began moves to make the Nigerian Financial Intelligence Unit (NFIU) independent of the Economic and Financial Crimes Comission (EFCC).
The Senate Committee on EFCC is to articulate a bill within four weeks for the immediate autonomy of NFIU, which is domiciled in the EFCC.
The decision was taken after a debate on Nigeria’s suspension from the Egmont Group of Financial Intelligence Units.
The Senate blamed Attorney General and Minister of Justice Abubakar Malami, Interior Minister Abdulrahman Danbazzau and EFCC Acting Chair Ibrahim Magu for Nigeria’s suspension.
TheNewsGuru.com reports that the Egmont Group of Financial Intelligence Units provides the backbone for monitoring international money laundering activities across the world.
The Senate also said it was ready to do everything necessary to reverse Nigeria’s suspension moreso when “the group warned that if Nigeria fails to comply with the group’s demands for a legal framework granting autonomy to the NFIU by January 2018, the country will be expelled from the global body”.
The Chairman, Senate Committee on Financial Crimes, Senator Chukwuka Utazi (Enugu North), moved a motion on “dire implications of the suspension of Nigeria from the Egmont Group of Financial Intelligence Units”.
The Senate said it was concerned that in view of the “non-cooperating stance of the executive branch”, the legislative branch would have to urgently leverage its institutional mechanism to ensure that Nigeria’s suspension from the EGMONT Group was reversed.
The upper chamber noted that it was all the more urgent, considering the December deadline given to the country to comply to avoid expulsion. Besides, the Financial Action Task Force (FATF) High Level Mission to Nigeria plans a visit to the country in November 2017 to appraise Nigeria’s preparedness to be granted the status of observer and later membership of the FATF, especially with regard to the needed co-ordination by the three line ministries of Justice, Finance and Interior.
It noted that the granting of the requisite autonomy to the NFIU has been “aggressively and progressively resisted by the EFCC.”
The Senate added that its Committee on EFCC, in order to provide the needed autonomy for the NFIU to meet its primary mandate, technically and logistically, considered the NFIU’s budget separately from EFCC’s in the 2017 budget “but for the non-provision of budget sub-heads by the Budget Office and the reluctance of the EFCC to do the administrative necessity required”.
Adopting the report, the Senate said it was informed that if expelled, “the United Nations Convention Against Corruption (UNCAC) Implementation Reviewing Group will be served a notice against Nigeria, and most countries, including the United States, the UK, Germany, Switzerland, etc., would alert their financial institutions and services through the issuance of advisories such as the Financial Criminal Enforcement Network Advisory and Foreign Assets and Cash Directive, to warn them to apply extra care and diligence in transacting with Nigeria and Nigerians.”
The Senate resolved to:
*pass a law creating a substantive and autonomous Nigeria Financial Intelligence Unit, NFIU, and make the Unit legally and operationally autonomous with powers for the employment, reward, training, promotion and discipline of its workforce independently;
*empower the NFIU to, in line with international best practices, exchange and relate with all countries on issues affecting its mandate at the bilateral and multi-lateral levels;
*urge the three Line ministries of Justice, Finance and Interior to do all within their powers to ensure that Nigeria’s suspension is immediately reversed and ensure that all conditions specified by the EGMONT Group are met to re-admit and improve Nigeria’s standing within the Group while increasing their levels of cooperation and co-ordination to ensure that Nigeria achieves membership of FATE; and
“urge the Executive branch to include in any supplementary budget estimate that may be presented to the National Assembly before the end of the year a separate budget for the NFIU in view of the need to lift the suspension of Nigeria as soon as possible.
The Senate also noted ”the meddlesomeness of the Acting Chairman of the EFCC in the affairs of the NFIU by his interference in the operations and staffing of the Unit leading to the departure of many competent hands; and divulging confidential information concerning the activities of the EGMONT group.”
Senate President Bukola Saraki said the Senate would work swiftly to ensure that the suspension was lifted.
Saraki said: “Clearly, this suspension is a setback in our fight against corruption and, as such, we must move swiftly because we cannot afford to be cut off from the EGMONT Group. We must move swiftly and ensure that this suspension is lifted. And one of the things that we need to do is to ensure that we pass this bill as soon as possible to give independence to NFIU and any of the other activities that must have led to this must be stopped. And the Committee on Anti-Corruption should carry out their oversight to ensure that the sooner we get the suspension lifted, the better for our image and the fight against corruption.”