Money Laundering: how Africa politicians, financial managers contribute $50billion fleece yearly--EFCC

By

Emeka Ibemere

It was at the Chartered Institute of Bankers of Nigeria, CIBN’s Anti-Money Laundering workshop which was held at the Reiz Continental Hotel, Abuja on April 23, 2015.

Bankers and major players in Nigeria’s financial sector assembled for the workshop on the way forward against money laundering which has become a major issue in financial corruption.

The essence of the workshop was the need for the Economic and Financial Crimes Commission, EFCC, and other law enforcement agencies to seek a strong cooperation with financial stakeholders in combating money laundering.

 The Commission’s Director, Finance and Accounts, Bukar Abba, who represented Ibrahim Lamorde, described money laundering as an evil that requires collective and concerted efforts to tame.

 “Money laundering is a cross-jurisdictional crime that, while obviating natural and artificial national boundaries, actually serves to bring nations together in one global crime-fighting network,” he said.

 While lamenting the impact of illicit financial flows from Africa, he noted that an estimated $50billion is lost by the continent in illicit financial flows, thus necessitating the important roles of players in the financial sector, in combating money laundering.

 “These flows relate principally to commercial transactions, tax evasion, criminal activities including money laundering; drugs,  arms and human trafficking; bribery, corruption and abuse of office,” Lamorde further stated.

Quoting from the December 2014 report of the Global Financial Integrity, entitled: Illicit Financial Flows from the Developing World: 2003 to 2013, the EFCC boss noted that the statistics are enough cause for worry.

 “I believe that more than ever before, there is the need for a concerted push to deal a telling blow to the criminals in our midst, and we must come to the realization that money launderers never stop re-inventing themselves,” he said.

 In his paper, Anti-Money Laundering Legislation in Nigeria, New Regulations and Guidance Notes, Bala Sanga, the project coordinator (Anti-corruption) of the United Nations Office on Drugs and Crime, noted that many players in the financial sector, have provided a platform for politicians to be corrupt.

 “There’s the need for financial institutions to strengthen and enhance proper collation of customers’ data, and to ensure proper diligence on customers,” Sanga said.

It would be recalled 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 it’s 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.

 Therefore, the level of dependence on supplementary Guidance Notes to support implementation (as was the case with the 1994 Act) should be significantly lower under the 2010 Act. Credit and financial institutions must refer to the provisions of the Act to ascertain their statutory obligations.

The Central Bank of Nigeria is specified in the Act as the State competent authority for credit and financial institutions. The CBN is responsible for effectively monitoring credit and financial institutions’ compliance with their obligations.

Analysts believed that some agencies of government deliberately aid in the shipment of money out of the country through the ports to generate pecuniary benefits for themselves.

 

“The reason why we are bringing EFCC into the whole thing is that these agencies are part of the problem. 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.

An operative of the EFCC says that isn’t as if the act hasn’t been going on but that it’s being noticed now that the Commission moved to the airports and the whole thing looked as it’s on the increase. He said before now, the act has been on and that security agents at the airports compromise and aid 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, once blamed it on the 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 steamed 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”, he added. “But laundering through the airports, they may influence security agencies and escape arrest. There is too much of stolen money abroad. Our country had it so badly in the recent times”.

The Nigeria Customs Service on April 2013 arrested a Hong Kong-bound passenger at Murtala Mohammed International Airport, Lagos, with 767,500 dollars.

The Customs Command at the airport said the passenger was arrested while boarding 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 Nov. 3, 2012, the suspect travelled with 10,000 dollars to China and the present case of Jan. 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 $100million 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 into 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 governments are also in the business of money laundering. Wednesday November 7 2012, one of the suspects, Abdulrasheed Ibrahim was nabbed on as he prepared to board a Dubai; the United Arab Emirates bound Ethiopian Airline.

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 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).

The suspect is still under being investigated

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, 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 has been questioned even as the suspect has been release on administrative bail, pending the conclusion of investigation.

The arrest of the duo comes on the heels of 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 (Seven million, Forty Nine Thousand, Four Hundred and Forty Four United States Dollars).

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 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 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.

“Under 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”, Wilson Uwajeren, EFCC spokesman stated . The one count charge against him reads:  “That you Ikem Sebastian Ikechukwu on or about the 29th of September 2012 at the Murtala Mohammed International Airport, Lagos within the jurisdiction of the Federal High Court while transporting in cash the sum of $286, 400.00 (Two Hundred and Eighty Six Thousand, Four Hundred Dollars) only from Nigeria to Dubai, United Arab Emirates falsely declared to the Nigerian Customs Service the sum of $225,900.00 (Two Hundred and Twenty Five Thousand, Nine Hundred Dollars) only instead of the said sum of $286,400.00 (Two Hundred and Eighty Six Thousand, Four Hundred Dollars) as required under section 12 of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act cap F34 Laws of the Federation of Nigeria 2004 and Section 2 (3) of the Money Laundering ( Prohibition) Act, 2011 and thereby committed an offence punishable under Section 2(5) of the Money Laundering (Prohibition) Act 2011”. 

The accused pleaded guilty to the charge. Based on his plea, prosecuting counsel, A.M. Aliyu prayed the court to convict him. The defence counsel, B. O. Ndakara however pleaded with the court for leniency as the accused person was a first-time offender who did not waste the court’s time, “I pray the court to apply discretion in the terms of punishment to be awarded to the convict", and he told the court.

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 Economic and Financial Crimes Commission, 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( 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 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.

When the charges were read, the first accused person, Akinyele pleaded guilty to the two charges preferred against him in the four count charge, while the third accused, Nnanna pleaded guilty to the one count charge levied against him.

The second accused person, Ifeanyi Uramah pleaded not guilty to the fourth count which borders on counselling the other accused persons to commit the crime.

Defence counsel, D. O Ndakara urged the court to take notice of the guilty plea by the accused persons and be lenient since they have not wasted the time of the court.

In his ruling, Justice Okeke convicted the first and third accused persons as charged. He ruled that based on the provisions of Section 2(5) of the Money Laundering Prohibition Act 2011, the first and third accused persons should forfeit 25 percent of the undeclared sum ($1,400,000.00), which is about $350, 000, 00, to the Federal Government of Nigeria. 

As for the second accused person,  Ifeanyi Uramah who pleaded not guilty to the charge of counselling the convicts on how to conceal the money from security operatives at the airport, the court fixed Friday November 16, 2012 for hearing of  his bail application. The judge ordered him remanded in the EFCC’s custody.  In Abuja, a Federal High Court sitting in Abuja on Monday January 21, 2013, sentence one Abdulrasheed Ibrahim for attempting to smuggle $188,858 out of Nigeria.

The accused person on Thursday January 17, 2013 pleaded guilty to the one count charge of money laundering preferred against him by the Economic and Financial Crimes Commission, EFCC.

Ibrahim was arrested on Wednesday November 7, 2012 as he prepared to board a Dubai; United Arab Emirates bound Ethiopian Airline. 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 forty five thousand USD ($45,000) but a search revealed additional $143, 858.

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 defense Counsel Abubakar Y. Ndakele raised no objection to the tendering of exhibit, marked 1,2,3,4 respectively.  The trial judge, Justice Adamu Bello adjourned the case to January 21, 2013 for sentencing.  

The charge against  the accused reads: “that you Abdulrasheed Ibrahim on or about the 7th of November 2012 at the Nnamdi Azikiwe International Airport, Abuja within the jurisdiction of the Federal High Court while transporting in cash the sum of US 188,858.00(One hundred and eighty eight thousand, eight hundred and fifty eight United States dollars)only from Nigeria to Dubai, United Arab Emirates falsely declared to the Nigerian Customs Service the sum of $45,000.00 (forty five thousand United State dollars) only instead of the said sum of US$188,858.00 as required under section 12 of the foreign exchange (monitoring and miscellaneous provisions) Act Cap. F34 Laws of the Federation of Nigeria 2004 and Section 2(3) of the Money Laundering (Prohibition) Act, 2011 and thereby committed an offence punishable under section 2(5) of the money laundering (Prohibition) Act, 2011”.

In Gombe State, Justice Babatunde O. Quadri of the Federal High Court sitting in Gombe on November 5, 2012, sentenced Abdullahi Bello who was prosecuted by the Economic and Financial Crimes Commission, EFCC, on a five count charge of conspiracy, dealing in and possession of counterfeit Nigerian currency notes to 25 years imprisonment.

The offence for which Bello, who was arraigned on October 31, 2012, was convicted,  are contrary to Sections 6 (2) (b) and 4 (1) of the Counterfeit Currency (Special Provision) Act CAP C35 Laws of the Federation of Nigeria 2004.

Bello pleaded guilty to all the charges and is to spend five years in jail on each count, but the sentences are to run concurrently.

Bello had earlier pleaded guilty when he was arraigned on October 31, prompting the judge to adjourn sentencing till Friday November 2, 2012.  But on the adjourned date, Bello changed his guilty plea to “not guilty”, forcing the court to adjourn till November 5, 2012.

But in a dramatic twist, Bello stepped into the dock, pleading with the trial Judge and EFCC Prosecution Counsel, Al Qasim Ja’afar, to forgive him for what transpired in court on November 2, when he denied the charges against him. He begged he was wrongly advised by some inmates he met while in prison custody. But the Judge stopped him, advising him to keep his breathe, as his action may be prejudicial to the proceedings of the day.

Prosecution Counsel however amended the six count charges to five before reading the charges all over again to the accused. Prosecution called a witness to prove its case against Bello.

Prosecution witness, Ahmed Bala Mohammed, an operative of the EFCC, narrated to the court how the Commission acted on intelligence report concerning some persons who are in the business of defrauding innocent persons by using fake Nigerian Naira currencies. He told the court how Bello was arrested at the Sabon Main Market on 14 June, 2012. According to Mohammed, at the point of arrest, 38 pieces of suspected counterfeit N500 (Five hundred naira) notes amounting to N19, 000 were found on him.

Mohammed further told the court that forensic examination confirmed the currency notes found on Bello to be faked, as they lacked certain security features and have repeated serial numbers.

 

Bello confessed he was lured into the business by a neighbour who is presently at large. The accused confessed he had earlier this year been arrested by the Police in Gombe for a similar offence, but was granted bail. He claimed to have introduced some friends and associates, who are now at large, to the fraudulent business. Following the guilty plea by the accused, EFCC counsel, Ja’afar, prayed the court to convict the accused person accordingly.

Justice Quadri observed that Bello is a serial offender and therefore sentenced him to 5 years.

It was gathered that because of the rampant flow of money through the airports, the Economic and Financial Crimes Commission, EFCC, on Monday December 10, 2012, commenced undercover operations at the nation’s ports as part of efforts aimed at sanitizing port operations.

Mr. Ibrahim Lamorde, 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.