The Nigerian Money Laundering (Prevention and Prohibition) Bill, 2016: a critical appraisal
| Published date | 03 January 2017 |
| Date | 03 January 2017 |
| Pages | 79-88 |
| DOI | https://doi.org/10.1108/JMLC-07-2016-0025 |
| Author | Ehi Eric Esoimeme |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
The Nigerian Money Laundering
(Prevention and Prohibition) Bill,
2016: a critical appraisal
Ehi Eric Esoimeme
Department of Law, Cardiff University, Cardiff, UK and
Deji Sasegbon and Co, Lagos, Nigeria
Abstract
Purpose –This paper aims to critically examine the Money Laundering (Prevention and Prohibition) Bill,
2016. It also aims to determine the level of effectiveness of the preventive measures in the Bill.
Design/methodology/approach –The appraisal took the form of a desk study, which analyzed various
documents and reports such as the Financial Action Task Force Recommendations 2012, Mutual Evaluation
Reports conducted by the Inter-Governmental Action Group against Money Laundering in West Africa
(GIABA) on Nigeria, the judgment delivered by Justice Gabriel Kolawole of the Federal High Court Abuja and
the United Kingdom’s national risk assessment of money laundering and terrorist nancing.
Findings –This paper determined that the Bill could achieve its core objectives if the following
recommendations are implemented: section 15 of the Bill should be modied to include the denition of
“Arrangement”; lawyers should be allowed to send their Suspicious Transaction Report to the Nigerian Bar
Association, provided that there are appropriate forms of cooperation between the NBA and the Financial
Intelligence Unit, and this approach is in line with the Financial Action Task Force Recommendations; the Bill
should expressly prohibit retaliation by employers against whistleblowers and provide them with a private
cause of action in the event that they are discharged or discriminated against by their employers, and this
approach is being adopted by the US Dodd–Frank Act; a request for customer information, by the
Director-General of the Nigeria Financial Intelligence Centre, should be made pursuant to an order of the
Federal High Court obtained upon an ex-parte application supported by a sworn declaration by an authorized
ofcer of the Centre, justifying the request for customer information.
Originality/value –This paper offers a critical appraisal of the Money Laundering (Prevention and
Prohibition) Bill, 2016. The paper will identify the strengths and weaknesses of the Bill. This is the only paper
to adopt this kind of approach.
Keywords Money laundering, Corruption, Terrorist nancing
Paper type Research paper
1. Introduction
Nigeria has been described as one of the most corrupt countries in the world. Pervasive
corruption in Nigeria constitutes a major threat and underlies most of the money laundering
cases reported in recent time (The Inter-Governmental Action Group against Money
Laundering in West Africa (GIABA), 2008). Over the past 27 years, the Nigerian Government
has committed itself to combating corruption and money laundering.
In the 1980s, Nigeria took a bold initiative to enact the National Drug Law Enforcement
Agency (NDLEA) Act, No. 48 of 1989. This was to set the stage in confronting the menace
of money laundering on economic activities and to comply with the Vienna Convention.
Again in 1994, the Government took another bold step to address bank failure, through
checking the activities of money launderers and abuse by insiders in the banking sector, by
promulgating the Failed Banks (Recovery of Debt and Financial Malpractice in Banks) Act of
No. 18 of 1994. Until then, a number of unpleasant developments in the banking industry
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1368-5201.htm
Nigerian
Money
Laundering
79
Journalof Money Laundering
Control
Vol.20 No. 1, 2017
pp.79-88
©Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-07-2016-0025
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