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| Bureau de Change operators |
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| Bureau de Change operators |
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| Larmode, EFCC BOSS |
Emeka Ibemere
It
may no longer be business as usual for Bureau De Change operators across
Nigeria and it may not be the best of times for them, too.
The
Economic and Financial Crimes Commission has drawn the proverbial battle line
to tackle the physical movement of cash across the nation’s borders.
In
few days from now, the EFCC searchlights are to be beamed on the operators of
Bureau De Change.
Ibrahim
Lamorde on Monday, February 27, 2014 while delivering a keynote address at a
one-day sensitization workshop organized for Bureau De Change Operators by the
Commission through the Nigerian Financial Intelligence Unit (NFIU) at the EFCC
Academy, Karu, Abuja warned the financial operators to be cautious in their
dealings or face the wrath of the law.
Lamorde
charged the operators of bureau de change to carry out their businesses within
the ambit of the law and in line with international best practices or risk
prosecution and loss of their operating licenses.
The
Executive Chairman of the EFCC expressed displeasure with the role of the
operators in the physical movement of cash across the nation’s borders.
According to Lamorde, about $25.4billion was moved out of the country through
cross border physical movement of cash and financial instruments between 2009
and 2013.
"While this figure may not necessarily be
indicative of the proceed of crime, it does however show the Anti- Money Laundering
(AML) and Combating the Financing of
Terrorism (CFT) vulnerabilities associated with cash movements," Lamorde
stressed.
The
EFCC boss outlined some of the objectives of the workshop to include educating
the BDC on the AML/CFT architecture, the reporting obligations required from
them under the law, the sanctions regime applicable and the adverse macro-
economic consequences of a lax AML/CFT structure. He enjoined their leadership
to identify and weed out unprofessional operators amongst them who render
services without the knowledge of the relevant laws.
Lamorde
warned that while the action of the Central Bank of Nigeria (CBN) in
withdrawing operating licenses of 236 operators across Nigeria was
administrative in nature, the involvement of EFCC in the investigation of
financial crimes involved will lead to the prosecution of the bureau de change
(BDC), and their accomplices.
In
his own presentation, the Director, Trade and Exchange Department of the
Central Bank of Nigeria, Batari Musa represented by A.S Jubril, examined the
evolution of the BDC operation in Nigeria and stressed that the CBN was
empowered to appoint banks and any other non-banking corporate organization as
authorized buyer of foreign exchange.
Batari,
who gave a detailed operating guidelines
of the apex bank's role in the workings of the BDC stated that the
extant operating laws were adequate for anyone wishing to do genuine business
and that appropriate sanctions must be meted out to erring BDC if compliance is
to be enforced.
The
President of the Bureau de Change Operators of Nigeria, Aminu Gwadabe commended
EFCC for organising the workshop. He said what was needed was adequate synergy
between the operators and the regulators.
He explained that his organisation would do everything possible to
ensure that its members comply with the existing laws guiding their operations.
However,
our investigation revealed that apart from the bureau de change operators,
another conduit pipe through which money is being laundered physically to other
countries are through the activities of the courier service organizations. A
competent financial expert stated that Courier company operators in Nigeria are
guilty of money laundering. According to our source, huge foreign currencies
are being ferried out of the shores of Nigeria using Courier companies. The
financial stakeholder urged the Commission to also focus on the Courier
companies and equally organised the same seminar for the operators of the
Courier companies.
Meanwhile,
Lamorde has called for collaboration between the anti-graft agency and the
Association of Stock broking Houses of Nigeria (ASHON), to rid the capital
market of incidence of money laundering, fraud and imposters.
Lamorde
made this call when the executive members of ASHON paid him a courtesy visit at
the Commission’s head office, Abuja, last week.
The
EFCC boss said he was concerned about how proceeds of crime were invested in
the capital market and called on the association to be vigilant and notify the
Commission of suspicious transactions, especially when the so called
politically exposed person invest heavily in securities for under aged
dependants.
He
also charged the association to engage in sensitization and enlightenment
campaign so that Nigerians could decipher a genuine stockbroker from a quack.
“People
find it difficult to identify the real brokers and if there are imposters you
know of; that you are finding difficult to get let us know,” he said.
The
EFCC chairman called on the ASHON members to tackle the problem of unclaimed
dividends and the negative perception about the capital market.
“The
economy strives well if the capital market is doing very well and the integrity
of the capital market depends on the brokers”.
On
his own reaction, Emeka Madubuike, who led the 4-man delegation, thanked the
chairman for making out time to receive them.
He
explained that the association was formed in 2006, to protect the interest of
the members; ensure that businesses were done the proper way; reach out to
other stakeholders within the economy involved in stock business and advocacy.
He solicited for the support of the Commission to tackle fraud and other
related crimes in the industry.
“Since
the EFCC is interested in money laundering issues, it is pertinent that both
organization work out modalities to combat it,” Madubuike said. He called for
the organization of a workshop and training programme for both organizations
which, according to him, would create better understanding of how the market
works.
Aside
the executive chairman, other management staff who received the visitors
include Olaolu Adegbite, Director of Operations; Bolaji Salami, Director,
Organisational Support; Chile Okoroma, Director, legal and prosecution; Bukar
Abba, Director, Finance and Account; Mohammed Wakili, Director, Department of
Internal Affairs and Francis Usani, Ag. Director NFIU.
The
Commission on Wednesday 22 January, 2014 arraigned the trio of Onoshride Usen,
Babangida Bello and Nurah Mohammed before Justice A. M. Liman of the Federal
High Court, Benin on a 2-count charge bordering on conspiracy and illegal
dealing in Petroleum product.
When
the charge was read to the accused persons they pleaded not guilty.
One
of the charges read, “that you Onoshride Usen, Babangida Bello and Nurah
Mohammed on or about the 22nd day of October, 2013 along Ahor Benin -Lagos
expressway, Uhunmwode Local Government Area, Edo State, within the Jurisdiction
of this Honourable Court without appropriate license did deal in Petroleum
Product to wit, 33,000 litres of substance suspected to be Automotive Gas
Oil(AGO) conveyed in a white DAF truck with Registration number XZ 127 APP for
sale and thereby committed an offence contrary to section 1 (7) (a) of the
Miscellaneous Offences Act CAP M17 of the Revised Edition (Laws of the Federation
of Nigeria) Act 2007 and Punishable under section 1 (17) of the same Act”.
It
would be recalled that the accused persons were arrested sometimes in October
2013 at Ahor Benin/Lagos Express way, Uhunmwode LGA of Edo by men of the Joint
Task Force, 4 Brigade of the Nigerian Army with over 33,000 litres of Illegal
Petroleum Product in a DAF truck with Lagos registration number XZ 127 APP.
Justice Liman granted the accused bail in the
sum of One Million Naira (N1, 000,000.00) and one surety each in like sum. The
surety must be resident and own a landed property within the jurisdiction and
it must be verified by the registrar of the court.
The
case has been adjourned to the 5th of March, 2014 for commencements of trial.
However,
EFCC on January 23, 2014 arraigned one Mohammed Yusuf before Justice Farouq
Lawal of the Kano State High Court on a two count charge which borders on
issuance of dud cheque.
The
accused person who is the managing director/chief executive officer of Yusmed
Oil and Gas was alleged to have converted the sum of N47, 601,000,000 out of
the N118, 080, 000 given to him by the complainant, one Bashir Aminu Sale of
AMSALCO Industry Limited for the supply of automotive gas oil.
It
was gathered that the accused person failed to make full supply of the product
as required.
In
the process of attempting to make a refund, the accused issued two cheques for
the sum of N10, 000, 000 (Ten Million Naira Only) each to the complainant which
were returned unpaid for lack of sufficient fund in the account.
One
of the charges read: “that you Mohammed
Yusuf and Yusmed Oil and Gas Limited on or about the 29th day of January, 2012
in Kano within the judicial division of Kano State High Court issued a Guaranty
Trust Bank Cheque with serial number 00000177 dated 29th January, 2012 for the
sum of N10, 000, 000 (Ten Million Naira Only) to Amsalco Industry Limited which
was presented and returned unpaid on the ground that no sufficient fund were
standing to the credit of the drawer as at 10th May, 2012 the date it was
presented and you thereby committed an offence contrary to section 1(1)(a) and
punishable under section (1)(1)(b)(i) of the Dishonoured Cheque (Offences) Act,
Laws of the Federation 2004”
The
accused pleaded not guilty to the charge when it was read to him.
Counsel
to the prosecution, M.M Gambo asked the court to fix a date for hearing based
on the plea of the accused.
Justice
Lawal adjourned the case to 31st January, 2014 and ordered that the accused
person be remanded in EFCC custody.
Before
now, money laundering suspects have been transacting their illegal business
using Credit Institutions, Credit unions, electronic money institutions, retail
credit firms, Moneylenders and Insurance undertakings and insurance
intermediaries. Also, their other means included going through investment
business firms, collective investment schemes, funds and fund service providers
known as Bureau de Change and money transmission businesses.
It
was also discovered that their mechanism
involves any entities, regardless of regulatory status engaged in taking
deposits, lending, leasing payment services as defined in Directive 2007/64/EC,
issuing or administering means of payment providing guarantees, trading in
money market instruments, foreign exchange futures and options, exchange rate
instruments or transferable securities, participating in securities issues,
advising on capital structure, or industrial strategy or advising on or
providing services relating to mergers and the purchase of undertakings, money
broking, portfolio management and advice, safekeeping and administration of
securities, safe custody services and issuing electronic money.
But
these old ways seem to have been dropped by the launderers who have devised raw
method by carrying the cash in sacks and ferrying them out through the airports
using the bureau de change operators
Reports
say from January to 2013 January, over $800million was intercepted by the
various security agencies, including the EFCC, Nigerian Custom Services,
Nigerian Immigration Services, Directorate of State Security (DSS), and
National Drug Law Enforcement Agency (NDLEA), at the nation’s major Airports
and on land borders.
Murtala
Mohammed International Airport, Nnamdi Azikiwe Airport Abuja and Kano Airports
were reported to the most notorious routes through which the alleged criminals
used to courier their huge exploits.
In
all the cases, bureau de change operators were named in the deal.
It
would also be recalled that the Nigeria Customs Service on April 2013 arrested
a Hong Kong-bound passenger at Murtala Mohammed International Airport, Lagos,
with $767,500.
The
Customs Command at the airport said the passenger was arrested while boarding
Emirates flight number EK782 to Hong Kong, via Dubai.
It
was gathered that the passenger declared the amount on the prescribed forms
CDF1A and CDF1B, but could not explain satisfactorily the source of the money.
The suspect was observed to be a frequent traveller.
“He
travelled between April 27 and Sept. 15, 2012 with $1.3million, which he took to
Hong Kong. Also in Nov. 3, 2012, the suspect travelled with $10,000 to China
and in January 10, 2013, he was caught trying to smuggle out $767,500 to Hong
Kong.
Last
year, the EFCC said close to $100million was seized from travellers at the
airports, trying to smuggle money abroad.
The
Commission arrested two suspects over an attempt to smuggle more than $238,858
(two hundred and thirty eight thousand, eight hundred and fifty eight United
States Dollars) out of the country through the Nnamdi Azikiwe International
Airport, Abuja. Investigation shows that with intensive crackdown on money
launderers and their cohorts in the banking industry, laundering scams suspects
resulted into recruitment of some bureau de change businessmen to be taking the
money out in bulk cash after settling their ways at the airports.
November
7, 2012, one Abdulrasheed Ibrahim was nabbed as he prepared to board a Dubai;
the United Arab Emirates bound Ethiopian Airline.
A
total of $188,858 was found on him. He had declared the sum of forty five
thousand USD ($45,000), only for a search on him to reveal additional $143,
858.
Further
search reveal that he was carrying forty British Pounds and 5753grams of solid
gold worth thirty four million five hundred and eighteen thousand naira (N34,
518,000).
Hyginus
Ezedimbu was also apprehended at the Nnamdi Azikiwe International Airport on
November 3, 2012 as he prepared to board an Ethiopian Airline on his way to
China.
He was caught with $50,000 but he declared
$49,971. Apart from under- declaring the money in his possession, Ezedimbu
could also not explain the ownership of the money, nor was he able to produce
the receipt with which he purportedly purchased the forex from a Bureau De
Change.
Musa
Adamu, operator of Majia Bureau de Change, Abuja, who purportedly sold the
currency to Ezedimbu was questioned even as the suspect was later released on
administrative bail, pending the conclusion of investigation.
This
year, there was similar arrests at two of the nation’s other major gateway, the
Murtala Mohammed International Airport, Lagos and the Mallam Aminu Kano
Airport, Kano.
Abubakar Tijani Sheriff, who has since been
convicted by a Federal High Court in Lagos, was also arrested on September 27,
2012 at the Murtala Mohammed International Airport en route Dubai, United Arab
Emirates for attempting to smuggle $7million out of the country.
When
he was arrested, he declared that he had only $4.5million on him but thorough
search showed that he was actually carrying $7,049,444.
That
was not all, within that 2012, a Federal High Court sitting in Lagos and
presided over by Justice Okechukwu Okeke on Friday, November 23, 2012 convicted
a bulk cash courier arraigned by the EFCC, and ordered him to forfeit 25% of
the $286,400.00(Two Hundred and Eighty Six Thousand, Four Hundred United States
Dollars) not declared to the security agencies before he was arrested at the
Murtala Mohammed International Airport, Lagos.
The
convict, Nkem Sebastian was apprehended by the anti-graft agency for attempting
to smuggle $286,000 out of the country.
He
was arrested as he prepared to board a plane for Dubai, the United Emirates en
route China. The courier, Ikem Sebastian Okechukwu, was intercepted by
operatives of the EFCC, on Saturday, 29
September, 2012 while carrying $286,400.00( Two Hundred and
Eighty Six Thousand Four Hundred United States Dollars)
at the Murtala Mohammed International Airport , Lagos on his way to Dubai , United Arab Emirates .
He only declared the sum of $225,900.00(Two Hundred and Twenty Five Thousand,
Nine Hundred United States Dollars) to the Nigerian Customs Service.
When
the money was discovered, Sebastian disclosed that he had only $200,000 on him.
But a search revealed that he was actually carrying $286,000.
On
Sunday, September 30, 2012 operatives of the Commission arrested one Alhaji
Tasiu Ilu Kura, a businessman with $700,000 (about N112m) at the Mallam Aminu
Kano International Airport, Kano. The suspect who hails from Kura Local
Government in Kano State, was arrested en route Dubai, United Arab Emirates.
Reports
say non declaring cash at entry and exit points in the country are criminal
offence and the person making the declaration risk losing 25 percent of the
money not declared or a two year jail term or both.
Justice
Okeke convicted the accused person as charged.
He ruled that based on the provisions of Section 2(5) of the Money Laundering Prohibition Act 2011, the accused person should forfeit 25 percent of
the undeclared sum which is $60,500
(Sixty Thousand Five Hundred United States Dollars) to the Federal Government
of Nigeria.
As
that wasn’t enough, Justice Okechukwu Okeke on Wednesday, 14 November, 2012
convicted another two bulk cash couriers arraigned by the EFCC and ordered them
to forfeit 25% of the $1.4million (One Million, Four Hundred Thousand United
States Dollars) not declared to the security agencies before they were arrested
by operatives of the EFCC at the Murtala Mohammed International Airport,
Lagos.
The couriers: Adetula Akinyele, a security
guard with the Federal Airports Authority of Nigeria, FAAN; Ifeanyi Uramah and
Emmanuel Nnanna were intercepted by operatives of the EFCC on Saturday, 21
October, 2012 with $1.4million at the Murtala Mohammed International Airport, Lagos.
They
were arraigned on Wednesday, November 14, 2012 on a four count charge of
conspiracy to transport the said amount of money out of Nigeria through the
Murtala Mohammed International Airport, Lagos, without declaring it to the
Nigerian Customs Service as required by Section 12 of the Foreign Exchange
(Monitoring and Miscellaneous Provisions) Act cap F34 Laws of the Federation of
Nigeria, 2004 and Sections 2(3) and 18(a) of the Money Laundering (Prohibition)
Act, 2011.
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