Financial Crime World

Nigerian Financial Sector Faces Surge in Financial Crimes: Experts Propose Technology-Driven Solutions

The Nigerian financial sector is grappling with a surge in financial crimes, prompting financial crime experts to call for new technologies to tackle the issue. Here are some highlights from the Award Ceremony/Fin-Crime Summit in Lagos where experts shared insights on the challenges and potential solutions.

Challenges in Nigeria’s Financial Sector

Prof. Ehi Eric Esoimeme, a Certified Anti-Money Laundering Consultant (CAMC), described the challenges in the sector as follows:

National Barriers

  • Absence of reliable data from the government
  • Outdated risk assessment of money laundering and terrorist financing
  • Lack of explicit guidance on technology applications for data sharing
  • Inadequate regulatory requirements and guidance for implementing end-to-end AML solutions with machine learning techniques

Institutional and Operational Barriers

  • Cyberattacks
  • Insider fraud
  • Inadequate information sharing among parent and subsidiary companies for AML/CFT purposes

Proposed Solutions

Esoimeme offered several recommendations to effectively tackle these challenges:

  1. Revised National Risk Assessment: A regularly updated risk assessment to accurately represent Nigeria’s risk profile.
  2. Accurate and Up-to-date Beneficial Ownership Information: Maintain by the Corporate Affairs Commission (CAC).
  3. Cybersecurity Efforts and Process Automation: Ensure adequate staffing and resources for banks and financial institutions to minimize cyber risks.
  4. Targeting Complicit Merchants and Professionals: Addressing individuals aiding TBML and professionals involved in the crime.
  5. Identifying Weak Compliance Programs: Collaborate with international partners to track illicit proceeds, identify parties, collect evidence, and seize assets.

Leadership and Best Practices

Rezaul Karim, Assistant Vice President of Compliance at HSBC Bangladesh, and Paul Allieu Kamara, Public Relations Officer at Rudolph Kwanue University, shared their insights on leading successful anti-money laundering teams and addressing organizational challenges.

Awards and Recognition

Esoimeme was honored with several prestigious awards at the event for his valuable contributions to Public Law and Financial Crime Compliance, including an Associate Professorship from Rudolph Kwanue University (Liberia), a Full Professorship from African Union University (Ethiopia), a Doctorate in Economics, Banking, and Finance (Honoris Causa), a Doctorate in International Relations (Honoris Causa), a Certificate of Membership in the Board of Trusteeship from Institu Universitare Du Benin (IUB) University, and a special recognition award from the Nigeria Police Force, Police Community Relations Committee (PCRC) Area C Command.