Combating Money Laundering: A Collaborative Effort by Business Associations
The Supervision Committee on Non-Financial Institutions (SCUML) has been working closely with relevant Self-Regulatory Organizations (SROs) to combat money laundering and corruption in Nigeria. This article highlights the efforts made by SCUML and its partners to prevent money laundering.
Collaboration with SROs
Training and Compliance Education
To ensure that non-financial institutions (DNFIs) are aware of the risks associated with money laundering, SCUML has been engaging in training and compliance education. This includes educating DNFIs on how to identify and prevent money laundering activities.
Designated Non-Financial Businesses and Professions (DNFBPs)
SCUML has designated additional businesses and professions as DNFBPs based on national/industry Anti-Money Laundering (AML) risk assessment reports. This move aims to ensure that these industries are aware of the risks associated with money laundering and take necessary steps to prevent it.
National Advisory Council
To provide guidance and oversight, SCUML has established a National Advisory Council comprising representatives from all relevant professional bodies in Nigeria.
Government Agencies Collaboration
SCUML has been working closely with government agencies, including:
- Economic and Financial Crimes Commission (EFCC)
- Central Bank of Nigeria (CBN)
- Federal Inland Revenue Service (FIRS)
- Code of Conduct Bureau
These collaborations aim to achieve a common goal: preventing money laundering.
Notable Success Story
The CBN circular mandating DNFIs to register with SCUML as a precondition for opening bank accounts and as part of customer due diligence is a notable success story in the fight against money laundering.
Preventing Money Laundering
To prevent money laundering, SCUML emphasizes the importance of:
- Proper internal policies and procedures
- Conducting customer identification and due diligence
DNFIs are required to obtain and verify the identity of clients, including information on their business, profession, and source of funds and wealth.
Challenges Remain
Despite these efforts, challenges remain. Recent judgments by the Federal High Court and Supreme Court of Nigeria have highlighted the need for further action. The anti-corruption agencies are studying the impact of these judgments and consulting on relevant sections of the law.
Other Organizations Playing a Crucial Role
In addition to SCUML’s efforts, other organizations such as:
- Independent Corrupt Practices Commission (ICPC)
- Code of Conduct Bureau
are also playing a crucial role in enforcing and preventing money laundering. ICPC is prosecuting five cases of money laundering in the Federal High Court, while CCB has evolved an anti-money laundering strategy through collaboration with the Nigerian Financial Intelligence Unit (NFIU).