SCUML, NGOs Partner To Tackle Money Laundering, Terrorist Financing

SCUML, NGOs Partner To Tackle Money Laundering, Terrorist Financing

The Director of Special Control Unit Against Money Laundering (SCUML), Bamanga Bello, has said that money laundering and terrorist financing can harm the national economy and security if not checked.

He said the issue of money laundering and terrorist financing should not concern only the government, law enforcement and regulatory authorities, adding that “the public sector, the private sector, the business community and even the ordinary citizen must play a role in combating it. Hence, there is need for a collaborative approach to overcome the menace.”

Speaking at a one-day workshop organised by the Nigerian Network of Non-Governmental Organization (NGOs) in collaboration with the Special Control Unit Against Money Laundering (SCUML) of the Economic and Financial Crimes Commission, EFCC, on Monday, February 19, 2018 in Lagos, Bamanga said the supervisory activities of SCUML with respect to the implementation of the Anti-Money Laundering and Combating of Terrorist Financing, AML/ CFT, would protect and preserve the integrity of the sector.

He, however, said that the SCUML activities would not disrupt or inhibit Non-Profit Organisations, NPOs, from carrying out their legitimate functions.

“SCUML carries out its supervisory activities on the NPO sector in accordance with requirements of the FAFT Recommendation 8 and its interpretive notes, which emphasises that measures adopted to protect the NPOs sector from terrorists abuse should not disrupt or discourage legitimate activities,” he said.

The SCUML boss, who also stated that the November 2017 Global Terrorism Index described Nigeria as the third most terrorised country in the world, said it was imperative for NPOs in the country to be acquainted with the Nigeria AML/CFT measures in order “to prevent, detect and report, timely and accurately, terrorist financing activities.”

He also expressed the optimism that the knowledge gap would be substantially closed up and that there would be a paradigm shift where players in the NPO sector would appreciate and imbibe the AML/ CLF compliance culture to prevent money launderers and terrorist financiers from exploiting their organizations for money laundering and terrorist financing.

Bamanga further used the occasion to inform the participants that Nigeria was preparing for the next round of Mutual Evaluation Review, MER, which would be conducted by Inter-Governmental Action Group Against Money Laundering in West Africa, GIABA, and the Financial Action Task Force, FATF.

Also speaking, the Director, Nigeria Financial Intelligence Unit (NFIU), Francis Useni, said the workshop would not only help to educate the participating NPOs on their obligations and roles under the Nigerian AML/CFT regime, but also awake their consciousness to the nexus between poor awareness of AML/CFT issues and the low capacity of the sector to combat the scourge of money laundering and terrorist financing

Useni, who was represented by the Head, Strategic Analysis, Fehintola Salisu, also relayed the agency’s readiness “to support the achievement of an effective, comprehensive and balanced implementation of the Nigerian AML/CFT regime by providing the needed guidance through capacity-building, provision of up-to-date AML/CFT typologies and informed trends assessment studies.”

Earlier in his remark, the Head, Nigeria, Network of Non-Governmental Organisations, NNNGOs, Oyebisi B. Oluseyi, said the workshop was organised to sensitize NPOs on issues surrounding AML/CFT.

“More importantly, it is also to find ways of understanding what our plans and roles are and how to be able to ensure that we fit into all these, since there is already a law that guides operations of non-profit organisations around AML/ CFT issues.”

The theme of the workshop was “Effective Implementation of Anti-Money Laundering (AML)/Combating the Financing of Terrorism (CFT) requirements in the Non-Profit Organizations in Nigeria.”

Sensitisation Workshop for SRBs

SCUML organised a 2-day zonal sensitisation workshop for Self Regulatory Bodies (SRBs) in the Designated Non-Financial Business and Profession (DNFBP) Section on Anti-Money Laundering and Countering Financing of Terrorism (AML & CFT). This porgramme was funded by the European Union and held on 30th and 31st January 2019.

OPERATIONAL STRUCTURE AND ORGANOGRAM

SCUML has its Head Office in Abuja and nine (9) Offices located in Lagos, Port Harcourt, Enugu, Kano, Kaduna, Gombe, Ibadan, Benin and Maiduguri. Operationally, SCUML is divided into five Sections as follows:

i. Compliance & Enforcement;
ii. Registration and Outreach Programme;
iii. Information & Data Management; and
iv. Finance and Administration.
v. Legal Services and Cooperation

ABOUT US

SCUML was established by the Federal Government in September 2005 in compliance with the provisions of the Money Laundering (Prohibition) Act 2004 which was subsequently repealed and amended to Money Laundering (Prohibition) Act 2011(as amended).

SCUML was created as part of measures for the implementation of the Financial Action Task Force (FATF) Recommendations on Anti- Money Laundering /Combating the Financing of Terrorism (AML/CFT) in Nigeria.

The FATF requires Countries to implement 40 Recommendations which are
considered as international standard for combating money laundering and terrorist financing as well as the financing of the proliferation of weapons of mass destruction (WMD).

The recommendations include amongst others the establishment of Legal and Institutional framework for the effective implementation of the AML/CFT measures in all Countries. This led to the enactment of the Money Laundering (Prohibition) Act, 2011 (as amended) and the Terrorism (Prevention) Act, 2011, (as amended) in Nigeria.

SCUML was created under the Money Laundering (Prohibition), Act, 2011 (as amended) to implement specific sections of the Act in line with the FATF recommendations for the implementation of AML/CFT measures within the Designated Non- Financial Institutions (DNFIs) Sector in Nigeria.

SCUML is statutorily under the Federal Ministry of Industry, Trade and Investment but operationally domiciled within the Economic and Financial Crimes Commission (EFCC) as the Commission drives the operational activities of the Unit in line with Sections 6(C) and 7(2) of the EFCC Establishment Act, 2004.

OUR VISION

To be a world-class regulatory unit – one that becomes a benchmark in the supervision, monitoring and regulation of the Designated Non Financial Institutions (DNFI) as regards compliance to Nigeria’s Anti Money Laundering and Combating the Financing of Terrorism AML/CFT regime’.

MISSION STATEMENT

To serve as a structure for the curtailment of Money Laundering and Terrorist Financing in the DNFI sector, providing world class intelligence as regards AML/CFT issues to relevant stakeholders, and the sanitization of the DNFI sector to create an enabling environment for the inflow of foreign direct investment.

FUNCTIONS OF SCUML

SCUML performs the following key functions to actualise its mandate:

  1. Registration and certification of DNFIs in Nigeria.
  2. Sensitization of DNFIs in Nigeria on their compliance obligations, under the Money Laundering (Prohibition) Act 2011 (as amended) and the implementation guidelines.
  3. Monitoring and supervision of the activities of DNFIs as it relates to AML/CFT.
  4. Conducting off-site, on- site, and spot checks inspection of DNFIs.
  5. Taking necessary enforcement actions to ensure compliance with the AML/CFT Laws and Regulations.
  6. Collection of statutory reports: Cash based transaction reports (CBTRs) and Currency Transaction Reports (CTRs) for onward forwarding to the Nigeria Financial Intelligence Unit (NFIU).
  7. Establishment and maintenance of comprehensive database of DNFIs and their financial transactions to support tactical, operational and strategic analysis as well as policy options in combating ML/FT.
  8. Strategic analysis using available data to identify emerging trends and patterns in money laundering and terrorist financing.
  9. Provision of vital information relating to DNFIs money trails to assist criminal investigations by Law Enforcement Agencies in order to boost the fight against economic and financial crimes within the DNFIs sector in Nigeria.
  10. Collaboration with stakeholders to ensure compliance with AML/CFT measures within the DNFI sector in Nigeria.

MANDATE OF SCUML

SCUML has the mandate to monitor, supervise and regulate the activities of DNFIs in Nigeria in consonance with the Nigeria’s AML/CFT regime. The DNFIs as defined under section 25 of the Money Laundering (Prohibition) Act, 2011 (as amended) are:

  • Dealers in Jewellery
  • Car dealers
  • Dealers in luxury goods
  • Audit firms
  • Tax consultants
  • Clearing and settlement companies
  • Supermarkets
  • Casinos, Pool Betting and lottery businesses
  • Law firms, notaries, and other independent legal practitioners
  • Accountants and Accounting Firms
  • Trust and Company Service Providers
  • Estate Surveyors and Valuers
  • Dealers in precious stones and metals
  • Non-governmental organizations (NGOs, NPOs, FBOs, CSOs)
  • Importers and dealers in cars or any other automobiles
  • Construction companies
  • Consultants and consulting companies
  • Hospitality Industry
  • Real estate agents, Estate developers, Estate Agents and Brokers
  • Mortgage Brokers
  • Dealers in mechanized farming equipments and machineries
  • Practitioners of mechanized farming.