GIABA Engages BDC Operators in Fight against Money Laundering, Terrorism Financing

•Says sector with over $469,734,000.00 asset base most vulnerable

Alex Enumah in Abuja

The Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) has engaged foreign exchange Bureau/Bureau De Change (BDC) operators in the fight against money laundering and terrorism financing in the country and by extension the West African sub-region.

GIABA at a National Workshop on Enhancing Anti Money Laundering (AML) and Counter-Financing of Terrorism (CFT) Compliance by Foreign Exchange Bureaus, observed that the sector which it described as the fastest growing in the West African financial services industry in terms of the numbers of institutions that have sprouted in recent years, was the most vulnerable to money laundering.

The anti-money laundering body disclosed that a Mutual Evaluation Report of Nigeria revealed that the country has 4,798 registered forex dealers with an asset base of $469,734,000.00, adding that the 2017 National Risk Assessment (NRA) of the country identified this sector as the most vulnerable to money laundering.

Speaking at the opening ceremony, GIABA’s Director General, Mr. Edwin Harris, stated that the BDCs play important roles in providing financial services and constitute one of the drivers of economic growth in Nigeria and West Africa as a whole.

“However, the nature of services they provide, make them to be vulnerable to abuse or risks of money laundering/ terrorist financing. The 2017 National Risk Assessment (NRA) of Nigeria identified this sector as the most vulnerable to money laundering.

“The NRA identified several vulnerabilities in relation to the foreign exchange bureaus/BDCs, including limited awareness of ML/TF risks, poor implementation of AML/CFT preventive measures and weak supervision / monitoring for AML/CFT compliance.

“In addition, the NRA noted concerns about the preponderance of unlicensed BDCs (black market operators), and the fact that a number of the dealings are cash-based, which constitute serious ML/TF risk”, the DG said.

While calling for cooperation and collaboration from stakeholders to improve compliance of the currency exchange sector with acceptable international AML/ CFT preventive measures, he stressed that GIABA would continue to provide technical support to its member states, including Nigeria to protect their national economies and financial systems against ML/TF and PF.

He explained that the primary objective of the workshop, was to provide a platform for participants to share experiences and foster cooperation and collaboration for effective implementation of AML/CFT preventive measures in the currency exchange sector.

In a goodwill message, the National President of the Association of Bureaux de Change Operators in Nigeria (ABCON), Alhaji Aminu Gwadabe, said the body was not unaware of the increasing threat posed by money laundering and terrorism financing in the system.

To this end, he said, “it is incumbent upon all stakeholders to work together towards addressing this challenge”, adding that as key players in the foreign exchange bureau sector, “we have a responsibility to ensure that our operations are transparent, accountable, and compliant with international best practices on AML/CFT.”

While stating that the workshop presented an opportunity for all to share experiences, learn from one another and collaborate towards effective implementation of AML/ CFT preventive measures in the sector, he urged participants to take full advantage of the platform to deepen knowledge and understanding of AML/CFT issues, and to work together towards a safer and more secure financial system for the country and the region at large.