Nigeria and the global community are facing growing financial crimes which are undermining countries’ economies just as they facilitate the spread of weapons and other illicit goods.
The Chief Executive Office of the Nigerian Financial Intelligence Unit (NFIU), Hafsat Abuba Bakari, disclosed this in a keynote address during a roundtable on Public-Private Partnerships as a platform to support AML/CFT/CPF collaboration in Nigeria.
She said the situation was destabilizing The WEst African region.
The roundtable was jointly organized by NFIU and the London Stock Exchange Group (LSEG), with the theme: “Public Private Partnerships (PPPs) as a Platform to support Collaboration Among AML/CFT/CPF Stakeholders” which she said underscores the importance of unity in the fight against financial crimes in Nigeria.
Present at the roundtable were the Minister of Interior, Olubunmi Tunji-Ojo; Commissioner for Insurance, Director-General of ICRC, Director-General of the National Information Technology Development Agency, Registrar-General Corporate Affairs Commission, Ms. Xolisile Khanyile Chair of the United for Wildlife Financial Task Force and former Head of the South Africa FIU, officials from the London Stock Exchange Group (LSEG), representatives of various agencies.
Bakari expressed worry that that the threats were complex and global, adding that they are “taking advantage of gaps in oversight, gaps in regulation, and gaps in enforcement.”
According to her, “the networks that facilitate these crimes, exploit weaknesses in our ability to work together and share information across all the stakeholders involved in the fight against financial crime.
“No one organization, public or private has the capacity to confront these challenges in isolation. It’s only through cooperation that we can expect to win.”
The NFIU boss argued that through Public-Private Partnerships, there would be a structured and effective platform for the pooling of resources, intelligence, and technologies.
“They enable stakeholders to align their efforts, share actionable insights, and develop strategies to counter financial crimes at all levels. Financial crimes are rarely confined to national borders.
“By working with international partners like the LSEG, Nigeria can enhance its participation in global initiatives against financial crimes, aligning with organizations such as FATF and GIABA.
Quoting the prime example of a successful PPP in Nigeria through the Bank Verification Number (BVN) initiative, she said partnership between the Central Bank of Nigeria (CBN), and commercial banks has succeeded in combating financial crimes.
According to her, “the BVN system provides every bank customer with a unique biometric identifier, and all linked accounts of a customer, significantly reducing identity fraud, enhancing transparency, and improving the ability of stakeholders to monitor financial transactions.
“This initiative has strengthened the nation’s AML/CFT framework and demonstrates the potential of PPPs to deliver systemic impact. While the BVN implementation has had tremendous value for our law enforcement and supervisory authorities, I believe we should not rest on our oars.
“We must continuously seek new innovative approaches, for instance through shared KYC systems, financial intelligence sharing partnerships and joint analytical teams all of which have been used extensively in other jurisdictions.”
Referring to another example of the use of PPPs in our national AML/CFT/CPF framework, she said the effort to combat wildlife crimes are increasingly being recognized as a significant predicate offence for money laundering.
“With the leadership of the Ministry of Environment and the National Environmental Standards and Regulations Enforcement Agency, Nigeria has brought together financial intelligence from the banking sector, law enforcement and prosecutorial authorities and is making significant strides in combating wildlife trafficking networks that fund and benefit from criminal enterprises that undermine biodiversity.
“By incorporating wildlife crime into our PPP agenda today, we ensure that the lessons learned can also benefit other critical stakeholders. I am particularly pleased that this PPP on Illicit Wildlife Trade has benefited from the international expertise of so many partners such as United for Wildlife which has recently launched a West Africa Chapter and established a IWT Charter which the NFIU and ICPC have both signed up to prioritizing environmental crimes.
“We have also been able to tap into the best practices available through the South African Anti-Money Laundering Integrated Task Force’s (SAMLIT) work on illegal wildlife trafficking and I am grateful that the former Head of the South African FIU is with us again today to share more of these lessons,” Bakari said.
