Appraisal of the regulatory frameworks for combatting money laundering in Nigeria
| DOI | https://doi.org/10.1108/JMLC-02-2021-0013 |
| Published date | 17 May 2021 |
| Date | 17 May 2021 |
| Pages | 345-357 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Adegboyega Adekunle Ige |
Appraisal of the regulatory
frameworks for combatting
money laundering in Nigeria
Adegboyega Adekunle Ige
Principal Counsel, Amicus Curiae, Egbe, Nigeria
Abstract
Purpose –A review of literature revealed that many publications on efforts at combatting money
laundering focus on two frameworks,namely, legal/legislative and institutional, while overlookingthe third
and equally important framework –the “regulatory/ supervisory framework.”Thispaper aims to eradicate
the dearth in literature withregards to this third and seldom acknowledged framework and it aims at filling
that gap.
Design/methodology/approach –The analysis took the form of a desk study, whichdistinguished the
three frameworks for combattingmoney laundering and provided a comprehensive list of the mainactors in
each regime withinthe Nigerian legal context. The Money Laundering (Preventionand Prohibition) Act, 2016
was examinedin detail.
Findings –Three categories of regulators were identified and discussed in this paper: the supervisory
bodies that regulate the activities of financial institutions, namely, Central Bank of Nigeria, Securities and
Exchange Commission and Nigerian Insurance Commission; The Bureau for Money Laundering Control
which supervises –designated non-financial institutions and businesses; the Attorney General of the
Federation; and (Self-RegulatoryOrganizations. The Attorney General of the Federationwas identified as the
prime regulatorwithin the context of the 2016 Act. Suggestions on how the regulators could make the most of
their roleswere made in the concluding part.
Research limitations/implications –This paper only consideredthe Nigerian legal context and only
the extant law –the MoneyLaundering (Prevention and Prohibition) Act,2016 was critically examined.
Originality/value –The findingsin this paper and the writingapproach are original.
Keywords Nigeria, Money laundering, Regulatory framework
Paper type Research paper
1. Introduction
The term money laundering denotesthe cleaning of money. As only unclean things need to
be cleaned, the literal meaningof the term will be the cleaning of unclean money and unclean
money in this context is not unclean currency,rather it is money that is derived from illicit
source (proceeds of crime). The aim of money launder’s will therefore be to create the
impression (albeit false) that money derived from illegitimate sources were obtained from
clean or legitimate source(s).
It is apposite to consider a few definitions at this point. According to Schott (2006)
money laundering is the process by which proceeds from a criminal activity are disguised
The author wish to acknowledge and appreciate –Dr Adejoke Ige-Olaobaju, Lecturer in Human
Resource Management & Organisational Behaviour, Faculty of Business and Law, University of
Northampton- UK, And , Dr Oluyemi Stephens, Researcher/President, Cottage of Hope Empowerment
and Rehabilitation Center, for providing constructive feedback and comments for the first and second
draft of the article.
Appraisal of
the regulatory
frameworks
345
Journalof Money Laundering
Control
Vol.25 No. 2, 2022
pp. 345-357
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-02-2021-0013
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