EMEKA IBEMERE with agency
Two
days ago, two Nigerians were reportedly arrested in South Africa for allegedly
trying to ferry out $9.3 out of Nigeria, using private jet. The South African
Revenue Service (SARS), seized that huge illegal fund of $9.3 million, cash
from the alleged two Nigerians and their co-travelers in the crime, an Israeli
at the Lanseria Airport in Johannesburg after they arrived on a private jet
from Abuja Nigeria’s capital.
Spokeswoman
of the South African Revenue Service, SARS, Marika Muller said the cash was
being held at the central bank, as South African police investigate the
incident because the funds were undeclared and way above the prescribed legal
limit.
The
men according to a Reuters report said they were going to use the funds to buy
arms. The cash was transported in three suitcases, The City Press, a Newspaper
in South Africa reported.
“The
passengers’ luggage was searched after Customs officials detected
irregularities. The money was detained as it was undisclosed/undeclared and
above the prescribed legal limit,” Muller said in a statement.
The
plane, a Challenger 600, had a Nigerian flight crew on board, along with two
Nigerian citizens and an Israeli.
It
was piloted by a Captain Ojongbede and the flight had come from Abuja, the
capital of Nigeria.
The
passengers apparently told officials they were acting on behalf of the Nigerian
intelligence service.
According
to South African authorities, they provided documentation confirming they had
come to South Africa to buy weapons. It is not clear whether the Israeli
passenger was an intelligence operative or an arms dealer.
City
Press, a local newspaper said it understands that the National Prosecuting
Authority unit that investigates crimes against the state was also involved in
the case, and the State Security Agency has also shown interest in the matter.
According
to the report, arms transactions are not usually paid for in cash, and a complicated
bank transfer system was needed to transfer large amounts of money from one
country to another.
The
case has been reported to the Muldersdrift Police Station, west of Joburg, and
the seizure of the money was documented accordingly, said Lackay.
The
aircraft was temporarily impounded, but was allowed to return to Abuja,
Nigeria.
Further
investigation revealed that the aircraft used to belong to the American
healthcare company Kimberly-Clark. But company spokesperson Bob Brand said the
firm had sold the plane years ago, and denied that it had anything to do with
the incident.
According
to the US Federal Aviation Administration aeroplane register, the Challenger,
with the registration number N808HG, was reregistered in the name of Bank of
Utah Trustee last year. The address in the register was given as Salt Lake
City, US.
Daily Newswatch investigation, revealed that
the tight security on banks’ transactions, money launderers seem to have
devised a new means to escape the eagle eyes of the financial institutions’
regulatory bodies and security agencies
But
their new-found skills in siphoning money abroad, through illegal means, have
become like an albatross.
And
there seems to be no escape route for them.
Until
this recent discovery, billions of naira had been laundered abroad through the banks
and other financial institutions, a situation that beat the imagination of the
financial gatekeepers, nay regulatory bodies and EFCC.
The
scope of illicit financial deals included credit institutions, credit union,
electronic money institutions, retail credit firms, moneylenders, insurance
undertakings and insurance intermediaries.
Other
means were through investment business firms; collective investment schemes;
funds and fund services providers; bureau de change and money transmission
businesses.
It
also involved any entity, regardless of
its regulatory status, that 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; future and options; exchange rate instruments or transferable
securities; participating in securities issues; advising on capital structure
or industrial strategy; 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 means seems to have been dropped
by the launderers who have now devised raw methods of carrying cash in sacks
and ferrying them out through the airports.
Since
January, 2012 to January, 2014, over $1bmillion has been intercepted by the
various security agencies, both home and abroad, by the Economic and Financial
Crimes Commission (EFCC), Nigerian Custom Services, Nigerian Immigration
Services and, sometimes National Drug Law Enforcement Agency( NDLEA), at the
nation’s major airports.
The
Murtala Mohammed International Airport, Ikeja, Lagos and Nnamdi Azikiwe
Airport, Abuja as well as Kano Airport are the most notorious routes through
which the alleged criminals are using to courier their huge exploits.
The
Nigeria Customs Service on April, 2013 arrested a Hong Kong-bound passenger at
the Murtala Mohammed International Airport, Lagos, with 767,500 dollars.
The
Customs Command at the airport said the passenger was arrested while boarding
an Emirates flight number EK782 to Hong Kong via Dubai.
The
Public Relations Officer of the Customs Service at the airport, Mrs. Thelma
Williams, said although the passenger declared the amount on the prescribed
forms CDF1A and CDF1B, he could not explain satisfactorily the source of the
money.
Williams
said upon investigation, the suspect was observed to be a frequent traveller.
“He
travelled between April 27 and Sept. 15, 2012 with 1.3 million dollars, which
he took to Hong Kong.
“Also,
in November 3, 2012, the suspect travelled with 10,000 dollars to China and the
present case of January 10, when he was caught trying to smuggle out 767,500
dollars to Hong Kong,” Williams said.
She
said the passenger and the amount had been handed over to the Economic and
Financial Crimes Commission for further investigation.
Last
year, the EFCC said close to $100 million was seized from travellers at the
airports, trying to smuggle the 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
has shown that with intensive crackdown on money launderers and their cohorts
in the banking industry, the goons in laundering scams have resulted to
recruitment of some bureau de change businessmen to be taking the money out in
bulk cash after settling their ways at the airports.
According
to investigation, politicians and those serving in government are also in the
business of money laundering.
On
Wednesday, November 7, 2012, one of the suspects, Abdulrasheed Ibrahim, was
nabbed as he prepared to board an Ethiopian-bound airline to Dubai in the
United Arab Emirates.
A
total of $188,858 (one hundred and eighty eight thousand, eight hundred and
fifty- eight United States Dollars) was found on him. He had declared the sum
of $45,000 (forty-five thousand) only for a search on him to reveal additional
$143, 858.
Further
search revealed that he was carrying 40 British pounds and 5,753grams of solid
gold worth N34, 518,000(thirty four million five hundred and eighteen thousand
naira).
Upon
arraignment on Thursday January 17, 2013, the accused pleaded guilty to the
charge.
The
prosecuting counsel, Chioma Okongwu tendered evidence of a certified true copy
of export currency tendering list along with the sum of US 188,858.00 and
prayed the court to convict the accused accordingly.
The
second suspect, Hyginus Ezedimbu, was 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 and was unable to produce the
receipt with which he purportedly purchased the forex from a Bureau De Change
either.
Musa
Adamu, the operator of Majia Bureau de Change, Abuja, who purportedly sold the
currency to Ezedimbu, has been questioned, even as the suspect has been
released on administrative bail, pending the conclusion of investigation.
The
arrest of the duo came on the heels of similar arrests at two of the nation’s
other major gateways: 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 Muritala Mohammed International Airport en route Dubai, the 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 he was
found to be carrying $7,049,444 (Seven million, forty-nine thousand, four
hundred and forty-Four United States dollars) after a thorough search was
carried out on him.
That
was not all, within 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 Economic and Financial Crimes Commission, 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 Muritala Mohammed Internationa Airport,
Lagos.
The
convict, Nkem Sebastian Okechukwu, 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 to Dubai, the United Arab Emirates en route China.
The courier, Okechukwu, was intercepted by the 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 Muritala Mohammed International Airport , Lagos, on his way to Dubai , the 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, the United Arab
Emirates.
As
if that wasn’t enough, Justice 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, October
21, 2012 with $1.4million( One million, four hundred
thousand United States dollars) 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
Muritala 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.
It
was gathered that because of the rampant flow of money through the airports,
the Economic and Financial Crimes Commission, EFCC, in 2012, commenced
undercover operations at the nation’s ports as part of efforts aimed at
sanitizing port operations.
Mr.
Ibrahim Lamorde, the executive chairman, EFCC, while receiving the special
adviser to the President on Performance Monitoring and Evaluation, Professor
Sylvester Monye, who paid him a courtesy visit at the commission’s headquarters
in Abuja, said the movement of the EFCC to the ports was to help in the
sanitization of the ports.
But
investigation revealed that money is being ferried out of the country through
the ports by persons suspected to be currency traffickers.
“I
assure you that we all understand the importance of the Maritime industry in
Nigeria and we will do everything possible to make sure that the work you are
doing is successful. In fact,, we will start deploying our people to the ports
from Monday to make sure that people that are not needed are removed”, the
anti-corruption Czar promised.
Analysts believe that some agencies of
government deliberately aid in the shipment of money out of the country through
the ports for pecuniary motives.
“The
reason why we are bringing the EFCC into the whole thing is that these agencies
are part of the problems. Where you have agencies of government constituting
themselves into bottlenecks, we need to remove these bottlenecks’’, Monye
declared.
Financial
experts suggest that the attraction to the use of airports was because the
nation’s borders are porous and that officials at the gateways are gullible and
can go for anything to aid the illegal transactions; hence, banks are no longer
attractive to move money out of the country.
In
an interview with Daily Newswatch, an operative of the EFCC, who spoke under
anonymity because he wasn’t in position to speak, said “It is not as if the act hasn’t been in
use, but it’s being noticed now that the commission has moved to the airports;
so, it makes the whole thing looks like it’s on the increase.”
He said before now, the act had been on and
that security agents at the airports had been compromising and aiding in the
shipment of raw money abroad through the airports.
Speaking
on the increase in cases of money laundering through the nation’s airports, the
former Commissioner of Police in Lagos State, Alhaji Abubakar Tsav, blamed it
on politicians who have stolen so much from the country and now taking it
abroad to avoid detection.
He
said the new device by the politicians stemmed from the fact that going through
the bank transfer would incur the wrath of the EFCC. “They will fall foul of
the EFCC law and will be arrested and prosecuted.”
Tsav
further stated that “There is too much of stolen money abroad. Our country had
it so badly in the recent times.”
The
Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, which is
in force from 15 July, 2010, transposes the Third Money Laundering Directive
(2005/60/EC) and its Implementing Directive (2006/70/EC) into domestic law,
brings Nigeria into line with EU requirements and the recommendations of the
Financial Action Task Force, FATF.
It stated that designated persons under the
Act, including all credit and financial institutions (as defined in the Act),
are required to comply with their obligations under the Act with immediate
effect.
The
Act contains specific and detailed regulatory requirements which are more
extensive than the previous money laundering and terrorist financing provisions
contained within the Criminal Justice Act 1994.
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