PRESS RELEASE: CBN vows Renewed Vigilance to Prohibit Illicit Financial Flows in the Banking Sector
The Central of Nigeria recently issued a press release on its commitment to increase and maintain vigilance toward prohibiting illicit financial flows in Nigeria’s Banking System.
The press release signed by Ibrahim Mu’azu,
Director of Corporate Communications at the CBN was in response to a recent report by the Global Financial Integrity group, which ranks Nigeria as one of the 10
largest countries for illicit financial flows in the world and the many backlashes and negative comments it has attracted from within and outside the country.
The issue of illicit financial flows is a log running story in Nigeria dating back to the sixties. It will be recalled that popular pop musician, Onyeka Onwenu, had done a documentary on NTA titled ‘Nigeria: A squandimanium of riches” in the early 80’s, shortly after the overthrow of Shagari’s regime and the subsequent revelations of the many corrupt practices that bedeviled that era.
unfortunately, with our shortly circuit mentality, soon after that expose, everyone again went to sleep while the corrupt masters continue to siphon billions through illegal means. Todate, there are many unasawered questions on wealth and revenue of the country.
It is interesting to note that in the press release, the CBN deviated from its past history of denials and counter accusations – It did not content with report by the Global Financial Integrity group nor its findings. Rather, it sought to draw attention to the sources of the illicit financial flows in Nigeria and assure everyone of its commitment to fight the monster to a standstill.
Here below is the full text of the press release:
Renewed Vigilance to Prohibit Illicit Financial Flows in
Nigeria’s Banking System
“The Central Bank of Nigeria (CBN) notes with concern a recent report by the Global Financial Integrity group, which ranks Nigeria as one of the 10 largest countries for illicit financial flows in the world. Although we do not
have an independent confirmation of this assertion, the report estimates that about US$15.7 billion of illicit funds go through our system annually.
In the light of this avoidably negative commentary, we wish to draw the public’s attention to several protocols on illicit fund flows, money laundering, and terrorism financing both in Nigeria and around the world, and warn that the CBN will increase its vigilance to ensure that Nigerian banks are not used as conduits for illicit fund flows, especially in foreign
currencies.
We note and applaud that in line with global best practice, Nigerian banks have started to curtail the acceptance of foreign currency cash deposits, much the same way as customers in other countries cannot just walk into
banks and make foreign currency cash deposits without proper documentation.
We wish to assure all citizens seeking foreign currencies for legitimate personal and/or business interests that there remains ample opportunity to do so within the law. The CBN’s Foreign Exchange Rules have many windows for accessing foreign exchange for legitimate business as well as
for personal commitments including payment of medical bills, school fees, mortgages, demand notes and other bills. Also, Bureaux de Change (BDC) services to small-scale users remain valid as long as this is to meet genuine needs, and BDCs’ documentations to the CBN include the customer’s Bank Verification Number (BVN).
The CBN will continue to support the Federal Government’s fight against money laundering, corruption, and terrorism financing and will block any and every avenue that may be used for these purposes. We will also ensure that persons who venture into currency speculation and currency
substitution find it unattractive and dangerous. In these efforts, therefore, we seek the continued cooperation of all Nigerians to make this work for the enhancement of our shared progress, rather than the prosperity of a greedy few amongst us.”
Signed: Ibrahim Mu’azu, Director, Corporate Communications, CBN
Chimaobi Agwu, Business Editor
