EFCC AND FIGHT AGAINST MONEY LAUNDERING IN NIGERIA
BETWEEN 2013 AND 2016.
ABSTRACT
The
research topic on EFCC and fight against money laundering in Nigeria between
2013 and 2014 aimed at determine the effect EFCC participation on the
alleviation of money laundering in Nigeria. the study looked at the concept of
money laundering and some theories to back it up, the primary data was used for
the purpose of the research work; and chi-square was used for the purpose of
the analysis; the p-value of 0.00 which is less than 0.05 level of significance
we concluded that there is significant effect of EFCC participation in the
alleviation of money laundering on the economic development of Nigeria.
Major
recommendations were made on the level of crises in Nigeria since it was
discovered that most of the terrorist attacks on Nigeria were masterminded by
money looters in Nigeria.
CHAPTER ONE
1.0
INTRODUCTION
1.1
BACKGROUND OF STUDY
Money
laundering in Nigeria has become something else in recent times; there have
been an endless war against corruption and money laundering. Money laundering
is usually found mostly in the federal government parastaters. A fight against
money laundering have always been a lost battle but the EFCC is doing their
best to bring it to minimum if not the resolve it.
Money
laundering is an act of taking money that is not duely assigned to you. The
money might be for the purpose of budget. There was a memo as at novernber 20,
2014 submitted by the Chief of Air Staff, A.N. Amosu, revealed that Mr. Eze had
on November 4, 2014 submitted a proposal to the office of the National Security
Adviser proposing to supply the upgraded helicopters to the NAF. The tone of
Mr. Eze’s letter, obtained by us, indicated that he was deeply involved in
sourcing and supplying hardware to the Nigerian military as it is embroiled in
a fight against Boko Haram militants. For instance, on August18, 2014 alone,
the sum of N26.68m in eight transactions; N178.54m in 43 transactions on August
19, 2014; N17.38m on September 3, 2014; N90.53m on November 11, 2014; N30.70m
on November 11, 2014; N13.54m on November 26, 2014; N67m on December 5, 2014;
and N10.80m on December 16, 2014 what are all these money for? There is money laundering all
over Nigeria in recent times.
In the year 2013, the governor of Benue state Dr Susuam was interrogated
by the EFCC concerning some amount of money he is taking out of the country;
question was asked concerning the money, the governor told the EFCC of Nigeria
that he was going to get foreign pigs for agriculture in Benue state up till
today there is nothing of such like agriculture in Benue State.
In
the month of July 2015, it was reported by the Sahara Reporters that an
investigative report that revealed connections between Mrs. Alison-Madueke,
Nigerian Petroleum Development Company (NPDC), and Atlantic Energy. This
website reported, “on July 19, 2010, Atlantic Energy Drilling Concept Limited
(AEDCNL) was incorporated as a portfolio company,” adding that this was
barely three months after Mrs. Alison-Madueke assumed office as the Minister of
Petroleum Resources. The report continued: “Atlantic Energy, even without prior
record of successful experience in the oil and gas sector, announced that it
had entered into a Strategic Alliance Agreement (SAA) with the Nigerian
Petroleum Development Company (NPDC) in April 2011. That was exactly six months
before AEDCNL was legally born.”
One
oil industry expert told Sahara Reporters that there was widespread shock when
Mrs. Alison-Madueke awarded an unknown company like Atlantic Energy a strategic
agreement with the NPDC “without following any process as stipulated in the
government procurement laws and policy.” The stated that oil industry operators
knew that the deal between Atlantic Energy and the NPDC “was an unholy
arrangement” between the former minister, top NPDC officials, Kola Aluko and
Jide Omokore. He identified Mr. Omokore as a “controversial business mogul” and
political financier.
In
the 2016 regime, the prisendent of Nigeria Muhammadu Buhari has once again
shown commitment to fight corruption in all sectors of Nigeria; he sent “Money
laundering (Prevention and Prohibition) bill, 2016” to the National Assembly.
The
bill, among others, were all in demand for the establishment of a Bureau for
Money Laundering Control (BMLC) to tackle money laundering related cases in the
country.
When
established, the BMLC would ensure that all designated businesses and
professions comply with the provisions of the money laundering act and exercise
supervision.
The
bill also seeks to grant full autonomy to the BMLC in the discharge of its
functions and responsibilities, if established.
The
bureau would be run through an advisory board to be headed by a chairman, who
will be appointed by the president on the advice of minister of Justice and
Attorney-General of the federation, Daily Trust reports.
Defining
money laundering, the bill says; “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 stated.
It
added that a person commits an offence if he enters into or becomes concerned
in an arrangement which he knows, ought reasonably to have known, or suspects,
facilitates by whatever means, the acquisition, retention, use or control of
property that has a criminal origin by or on behalf of another person.
The
bill further prescribed stiff penalty for anybody found culpable of money
laundering and upon conviction, the person shall be liable of an imprisonment
for a term of not less than seven years without the option of a fine.
Also,
under the new law, any bank that is found guilty of money laundering offence
would be liable to a fine of not less than N25m and a designated not-financial
business and profession would get a fine of not less than N10m, if found guilty
of similar offence.
It
also prescribed three years imprisonment or above for any anybody that fails to
report persons involved in money laundering.
It
was learnt that the bill would be considered when the lawmakers resume plenary
on Feb. 16. All these aimed at reducing the rate of corruption and money
laundering in Nigeria.
According
to Steel (2006), money laundering is said to be what it is because it shows how
“illegal” and “dirty” monies are put through a cycle of transactions and
washed, so it could come out as clean/legal money. This means that the source
of this fund (illegal money) is obscured through a succession transfers and
deals that those same funds can eventually be made to appear as good money. In
the Dictionary of Finance and Banking (2008), this term “money laundering” was
refers to as a process where money is acquired illegally either through theft,
drug dealing etc, is cleaned so that it will appear to have come from a
legitimate source. The origin of this “devil” (money laundering) could not be
ascertained by anyone, but there are several opinions that it started several
thousand years ago with Chinese merchants. In the words of silkscreen (1994)
and Steel (2006) they claimed that it all started from Mafia Ownership of
Laundromats, in the United States where they needed to prove the genuine source
for their monies, as they earned their cash from extortion, prostitution,
gambling and bootleg liquor. Also according to silkscreen (1994), the
development of money laundering was for trade and that Nigeria as a country is
the centre of money laundering in Africa. Nigeria’s historical record of
exploitation goes as far back as when her people were used as slaves under
British colony and as an independent and a sovereign country experiencing
transition from a military dictatorship to a democratic form of government
after over 16years of military rule. Now, with the democratic form of
government, money laundering is still on the increase. With this rate of scans
in Nigeria financial sector, the law enforcement decided to come up with
legislative act called the money laundering (prohibition) Act 2004, this was
followed by the Central Bank of Nigeria (CBN) Anti-money laundering compliance
manual guidelines from Economic and Financial Crimes Commission (EFCC, 2003),
Independent Corrupt Practices Commission ICPC, 2000). All agencies were changed
with the responsibility of fight against money laundering and enforcement of
all laws dealing with economic and financial crimes in Nigeria.
1.2 STATEMENT OF
PROBLEM
EFCC
have been trying to bring down money laundering in Nigeria but it is difficult
to fight against the parastater that created the EFCC, the issue of money laundering
is on the increase in Nigeria. ranging, money laundering through drugs,
cheating and stealing. Every administration that is coming in always promise to
fight corruption but at the end of the day, they became corrupt or they make it
worse. People have being crying; who could make it right. The federal
government of Nigeria and the EFCC are really fighting to bring down corruption
in Nigeria.
1.3 RESEARCH QUESTION
1. Will the EFCC participation in other
activities make them effective in preventing money laundering?
2.
What are the roles of the federal government of Nigeria in fighting corruption?
3.
Does corruption have any significant effect on the growth and development of
Nigeria?
4.
What are the importance of money of laundering?
5.
What are the best ways of stopping money laundering?
6.
Does money laundering have significant
effect on the future leaders?
1.4 RESEARCH
HYPOTHESIS
H0:
There is no significant effect of EFCC participation in the alleviation of
money laundering on the economic development of Nigeria.
H1:
There is significant effect of EFCC participation in the alleviation of money laundering
on the economic development of Nigeria.
1.5 AIMS AND
OBJECTIVES OF STUDY
The
aim of the research work is to determine the following:
1. The effectiveness of the EFCC in the alleviation
of money laundering in Nigeria.
2.
The roles of the federal government of Nigeria in fighting corruption.
3.
The effect of money laundering on the economic growth and development of
Nigeria.
4.
The disadvantages of money of laundring.
5.
The best way of stoping money laundring in Nigeria.
6. The effect of money laundring on the
performance of the future leaders of Nigeria.
1.6 SIGNIFICANCE OF
STUDY
The
research work is a very interesting one as it reveal the significant effect of
EFCC participation in the alleviation of
money laundring on the economic development of Nigeria. the study also
shows the best possible ways to prevent corruption in Nigeria. The study
discussed the role of the federal government of Nigeria in fighting corruption
and money laundring in Nigeria stating the significant effect of money
laundring on the economic development of Nigeria. the study also explained the
concepts of money laundring and the history of money laundring in Nigeria. it
also shows the journey so far on the alleviation of corruption and money
laundring in Nigeria.
1.7 SCOPE OF STUDY
The
study is limited to the history of money laundry in Nigeria, the effect of
money laundring on the economic development of Nigeria. the study discussed the areas of high rate of
money laundring in Nigeria. the study covers the role of EFCC in the
development of Nigeria. the research work made use of research questionnaires
to gather the responses of the respondents on the role of EFCC on the
alleviation of money laundring in Nigeria and a method of chi-square was used
for the purpose of the analysis.
1.8 LIMITATION OF
STUDY
FINANCIAL
CONSTRAINTS:
The
researcher was not with sufficient funds to travel to varrious agencies that
are responsible for the alleviation of money laundring in Nigeria. but was able
to get good information from the responses for the purpose of the research
work.
CONSTRAINTS:
Due
to limited time, the research could not do more research concerning the topic
so as to be able to meet up with time giving to him or her to present the
research work. But he or she was able to get meaning information with the shor
time for the purpose of the research work.
1.9 DEFINITION OF
TERMS
MONEY LAUNDRING: is the generic term
used to describe the process by which criminals disguise the original ownership
and control of the proceeds of criminal conduct by making such proceeds appear
to have derived from a legitimate source.
EFCC:The Economic and Financial Crimes
Commission (EFCC) is a Nigerian law enforcement agency that investigates
financial crimes such as advance fee fraud (419 fraud) and money laundering.
REFERENCES
1.
Advance Fee Fraud and Other Fraud Related Offences Decree No.13 of 1995 Act
Cap. A 6 L.F.N. 2004 repealed by Advance Fee Fraud and Other Fraud Related
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Informal Economy. Accessed at
http://rru.worldbank.org/Documents/PapersLinks/Sida.pdf. International Journal
of Academic Research in Accounting, Finance and Management Sciences Vol. 3 (4),
pp. 170–184, © 2013 HRMARS 183 3. Brent L.B (2002), “The Negative Effects of
Money Laundering on Economic Development” 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.
Celarier, M. (1997), Privatization: A Case Study in Corruption, Journal of
International Affairs. Volume 50, No 2. 5. Central Bank of Nigeria (2002) Money
Laundering, Its meaning, Process and Impact. Banking Supervision Department,
Lagos. 6. Dictionary of finance and banking (2008), Oxford University Press,
UK. 7. Dunia Amos (2011), Senate passes money laundering bill. The Sun
(Nigeria) online news magazine. Available at:
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.Act
Cap. E1 L.F.N. 2004 repealed by Economic and Financial Crimes Commission
(establishment) Act, No. 1 2004. 9. Efeyunmi Peter-Mario (2013),