$9.3 million: EFCC and new face of money laundering

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.