Regulation of money laundering in Africa: the Nigerian and Zambian approaches

Pages449-463
Published date23 October 2007
Date23 October 2007
DOIhttps://doi.org/10.1108/13685200710830934
AuthorNlerum S. Okogbule
Subject MatterAccounting & finance
Regulation of money laundering
in Africa: the Nigerian and
Zambian approaches
Nlerum S. Okogbule
Department of Jurisprudence and International Law, Faculty of Law,
Rivers State University of Science & Technology, Port Harcourt, Nigeria
Abstract
Purpose – The purpose of this paper is to examine the regulatory mechanisms adopted by two
African countries, Nigeria and Zambia, in dealing with money laundering in their countries and to
suggest ways of enhancing the effectiveness of these mechanisms to serve as veritable models for
other African states.
Design/methodology/approach – The relevant laws enacted by these states in their efforts to
tackle this crime were examined to assess their adequacy or otherwise in this direction. The key
provisions of these enactments, namely, the Nigerian Money Laundering Prohibition Act, 2004 and the
Zambian Prohibition and Prevention of Money Laundering Act, 2001, were discussed and the
similarities and dissimilarities in both enactments highlighted.
Findings – It was found that these enact ments have provided the requisite regulatory framework for
dealing with this crime in these countries. In particular, both enactments contain novel provisions such
as prohibition on cash transactions involving large sums of money, forfeiture of assets obtained from
money-laundering transactions, etc. It was also found that, although enacted three years earlier, in
2001, the Zambian enactment is more comprehensive and forward-looking than the Nigerian Act,
which was enacted in 2004, as the former provides for the establishment of an investigation unit within
the Anti-Money Laundering Authority, provisions that are absent in the Nigerian enactment.
Practical implications The implication of this finding is that African states must adopt strict and
stringent measures to enhance the enforcement of Money Laundering Laws, with the regulatory
mechanisms, which were put in place by these countries in tackling the menace, serving as veritable
guideposts.
Originality/value – The paper demonstrates, in a special way, the steps taken by two African
states, Nigeria and Zambia, in dealing with money laundering and suggests that, if other states utilize
these measures, it will go a long way in improving their capability in the fight against money
laundering. It finally suggests proper co-operation and collaboration between African states to make
the fight more meaningful.
Keywords Money laundering,Nigeria, Zambia, Crimes, Corruption
Paper type Research paper
1. Introduction
One of the economiccrimes that has adverselyaffected the level ofeconomic development
in Africa today is money laundering. Not only has it negatively impacted on the
economiesof African countries, but it has also seriouslydented the image of the continent
at the international arena. Indeed, it is the international aspect and adverse effect on
international business and commerce that has galvanized national and international
action to regulate it (Mclean, 1990; Rider, 1980). Money laundering has the notorious
tendency to discourage or frustrate legitimate business enterprise, corrupt the financial
system and ultimately, the socio-political system. It is the consequence of such activities
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1368-5201.htm
Regulation
of money
laundering
449
Journal of Money Laundering Control
Vol. 10 No. 4, 2007
pp. 449-463
qEmerald Group Publishing Limited
1368-5201
DOI 10.1108/13685200710830934

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