NFIU, Others Strategize on Blocking Access to Proceeds of Crime

Alex Enumah in Abuja

How to effectively deploy one of its powers in combating illicit financial flows is the focus of a two-day workshop of Financial Intelligence Units (FIUs) drawn from across the continent of Africa.

The goal is to find a balance between preventing crimes associated with illicit financial flows and protecting legitimate transactions, through the use of stop orders.

The workshop which started Tuesday in Abuja, is been organised by the Egmont Centre of FIU Excellence &Leadership (ECOFEL).

According to the Chief Executive Officer (CEO) of the Nigerian Financial Intelligence Unit (NFIU), Mrs Hafsat Abubakar Bakari, with present day “technology-enabled financial services industry, where funds are moved at the touch of a button, it is important that FIUs have these disruptive capabilities in order to ensure that criminal funds can be effectively frozen and seized”.

Bakari, in her opening remarks also stated that Section 7(6) of the Money Laundering (Prevention and Prohibition) Act 2022, empowers the Nigerian Financial Intelligence Unit (NFIU) to suspend transactions on funds suspected to have links with illegal activities for a short period.

“The specification of a 72-hour window is particularly key as it allows either the FIU or a relevant law enforcement agency to secure an order of the Federal High Court restraining the funds believed to be suspicious. This in essence allows enough time for a thorough investigation without the risk of the funds or assets being dissipated”, she added.

While observing that reducing the ability of fraudsters and other criminals to use their illicit proceeds reduces the incentives to engage in these crimes, Bakari however warned against the misuse or abuse of the tool.

She urged participants to always observe ethical and moral considerations in the use of stop orders, adding that the underlying principle is that of suspicion and not objectively established fact.

“We must be wary of the risk that legitimate transactions, funds and assets may be subject to these powers. Additionally, without effective controls these powers could be subject to abuses. This is why at the NFIU, we have established clear protocols and procedures for the use of stop orders.

“There must be a clearly demonstrated high level of risk that the funds are likely to be dissipated and/or that the suspicion of criminal linkages are established to a very high level of certainty.

“Beyond these, we have also established other controls which ensure that no single individual can initiate and authorize a stop order and through the use of automation we have effective audit trails in place”, she added.

In a remarks, ECOFEL representative, Mr Lennart Peek stated that the workshop was aimed at experience sharing among participants to devise new strategy in combating illicit financial flows and terrorism financing.

Peek expressed confidence that more Financial Intelligence Units would use the suspension powers of the financial systems within the West African region and beyond more than that it is today.