The acting
President, Professor Yemi Osinbajo,
must have addressed various relevant issues of interest at the opening ceremony
of the Conference on Promoting International Co-operation in Combating Illicit
Financial Flows and Enhancing Asset Recovery to Foster Sustainable Development,
held in Abuja the other day.
There is no
doubt that what resonated most in the media and across the country was his
reported call for the prosecution of banks and other financial institutions
involved in what was described as illicit transfer of funds, illicit flow of
financial assets from the country, and aiding corruption by hiding looted
funds.
He was also
reported to have called for two additional things: criminalization of financial
institutions that receive stolen funds from corrupt persons and delegitimising
or criminalising international financial institutions that connive with their
counterparts in the country to receive and keep funds that are proceeds of
corruption.
From the
numerous media reports, comments and opinions that have trailed Osinbajo’s
statements at the conference, it is apparent he spoke the minds of many
stakeholders in the Nigerian economy. In other words, many might have observed
the unprofessional and illegal practice of banks in Nigeria in receiving,
keeping and transferring funds that could easily have been suspected to be
proceeds from crime (corruption, money laundering, etc).
Government
had, over the years, turned a blind eye to the malaise. Now that the Acting
President has expressed a cause of desirable action, there is expectedly and
commendably, overwhelming support for it by well-meaning stakeholders. An
immediate commencement of investigation and prosecution of institutions and
individuals suspected to have committed the financial and economic crimes is
therefore desirable and those found guilty should be severely punished.
Even, the
statements credited to the Acting President suggest that the government just
came to the realization that financial institutions in the country could be
prosecuted for being the main drivers of illicit financial flow from the
country. But laws of the land have provided for the investigation and
prosecution of such financial institutions! The Acting President should,
indeed, simply have announced that investigations and prosecutions of such
institutions were on the way. That would have immediately sent to task the
various government ministries, departments and agencies responsible for such duties.
It should
not be in doubt to anyone that the day Nigeria should wake up to seriously and
sincerely question what the banks have done or failed to do with respect to
illicit financial deals, a greater percentage of the sources of the country’s
economic woes. Also, appropriate remedial actions must be taken in the interest
and benefit of the country and her citizens.
Banking
today can very well be said to have ceased to be an honourable service. It has
degenerated into an unholy business. From the operators’ penchant for
disobeying laws and regulations to other crimes, the wounds banks have
inflicted on the Nigerian economy are very deep. It is important to emphasize
that sanctions will succeed as deterrent if the outcome of such sanctions
outweighs the benefits derivable from non-compliance with the laws.
Towards
ensuring that banks stop illicit financial deals, strict implementation of the
Money Laundering (Prohibition) Act 2011 (MLPA) and the Economic and Financial
Crimes (Prohibition) Act 2004 is a sine qua non. Although the sanctions
provided may need to be reviewed upwards, these two laws have extensive
provisions that, if they had been properly and sincerely implemented, Nigeria
should have been better.
As the
nation awaits commencement of investigations and prosecutions, not only of
financial institutions but also their directors and employees suspected to be
involved in illicit financial deals, it is important to note that banks, by
their nature, are very sensitive and special organizations in the economy.
Thus, in dealing with them, government and its agencies need to be cautious not
to bring ‘showmanship’ into the fray. If wrongly handled, run may ensue which
may lead to unintended bank distress or even failure, with negative impact on
the economy. The government must therefore, avoid solving one problem by
creating another that may even be more serious.
It is also
imperative that as Nigeria seeks to bring to book banks that connive with or
support money launderers, corrupt public and private organizations and individuals
in their illicit businesses, it must not be forgotten that there are government
institutions such as the Central Bank of Nigeria, Economic and Financial Crimes
Commission, Nigeria Financial Intelligence Unit, Nigeria Police, and others
that have the responsibilities of ensuring that financial institutions operate
within subsisting laws and regulations.
Questions
must be asked and answers received on how creditably such institutions and
their employees carry out their mandates. So, government’s searchlights should
also be directed out such institutions that are meant to provide effective
regulatory and supervisory oversight. Where there are proven cases of
abdication or neglect of responsibilities, poor or abusive performance, the law
should be invoked to visit the culprits with severe punishment.
Finally, it
is the responsibility of every Nigerian to safe-guard the common wealth. The
recent government initiated whistle-blowing arrangement should be exploited to
report to appropriate authorities, in good faith and without witch-hunting,
cases of corruption, money laundering, illicit financial deals and others.
(Guardian)
No comments:
Post a Comment