The Director and Chief Executive Officer (CEO) of the Nigerian Financial Intelligence Unit (NFIU), Hafsat Bakari, has disclosed the infamous action of certain individuals, saying that the agency received 60,000 suspicious transactions and activity reports in 2023.
She added that the NFIU also received the report of over 15 million currency transactions in the same year under review
Bakari stated this in her Welcome Remarks at the NFIU-Law Enforcement Agencies Summit in Abuja on Wednesday.
According to the NFIU boss, there is an urgent need for stakeholders to create a robust synergy to deal with the challenges in view of the use of new technologies which provide anonymity and complex transactions
She said , “In 2023, the NFIU received over 60,000 Suspicious Transaction and Activity Reports, and over 15 million Currency Transaction Reports. Aligned to this is the use of new technologies which provide a layer of anonymity and complexity to transactions. From crypto-currency to agency banking, the link between the owner of the funds and the transaction itself is becoming more opaque.
“This also ties to our third challenge, the increasingly transparent borders. Not in the
physical sense, but the electronic sense. Funds, money and transactions move rapidly across financial institutions, digital platforms and through underground banking systems.
Bakari also dwelled on the need for cooperation among stakeholders, saying that it is regrettable that our systems for international cooperation are still subject to the frictions put in place by national borders, information silos and non-cooperative jurisdictions.
Proposing a number strategic priorities to address the challenges, Bakari said, “It is clear that we need to collectively up our game. To this end, I wish to propose a number of strategic priorities which should feed into the discussion today:
“First, there needs to be concerted effort to improve the utilisation of technology tools across all the competent authorities. While I recognise that many agencies have made significant investments in procuring and establishing databases and other platforms, interconnectivity remains a challenge.
“To become more effective, we should ensure that all our databases and platforms are built to common standards and shared protocols which will allow for seamless integration and connectivity. We should also prioritise the integration of the various identity databases to enable us to integrate financial flows with communication data and case records.
“Building these integrated systems and deploying new tools, utilising artificial intelligence and machine learning has the potential to transform the speed at which we can intercept and disrupt criminal networks.
“We should also develop a national financial crimes database which holds information on investigations, prosecutions, convictions as well as sentences and proceeds of crime. This will enable us to make better policy decisions to respond to changes in crime typologies.
“Second, we should also encourage the creation of fusion cells and joint investigation teams targeting the highest risk offences and the most serious crime networks. With the benefit of sitting in the NFIU and having an overview of the various requests for information we receive from different authorities, it is clear that there are often multiple agencies targeting and investigating the same individuals and networks. This can often lead to a duplication of effort and inefficient use of resources.
“ By working together, we can utilise the comparative advantage of each authority in a more efficient manner.”
Bakari also spoke on the need to prioritise international cooperation, saying that today’s crimes are trans-national in nature. She noted that the commission of the act happens in other jurisdictions while the perpetrators are not within our borders, or the proceeds are transferred as illicit financial flows.
She further said, “Through networks such as the Egmont Group of FIUs, INTERPOL and other informal channels information is available which can support investigative activities and point to assets which can be repatriated.
“These informal networks provide the basis for activating formal cooperation measures such as Mutual Legal Assistance requests through the Central Authority Unit which provide evidence for effective prosecution and asset recovery.”
On efforts being put in place to remove Nigeria from the grey list of Financial Action Task Force (FATF), Bakari said, “Distinguished guests, ladies and gentlemen, Nigeria has been on the list of jurisdictions under monitoring by the Financial Action Task Force (FATF) since February 2023.
“This listing was triggered by an assessment which found that our country has significant deficiencies in its laws, institutions and systems to combat money laundering, terrorist financing and financing of proliferation of weapons of mass destruction. Many of these deficiencies arise from some of the challenges I have mentioned earlier.
“While we have made significant progress in the past 19 months to implement an Action Plan to address these deficiencies, two strategic items remain, which will determine whether we exit the list in May 2025 or risk being escalated to the blacklist. If we are escalated, the financial and economic impact of Nigeria has the potential to be very damaging.
“In order for us to avoid this prospect we need to ensure
i. that our investigation and prosecution of money laundering linked to fraud, drug trafficking and corruption is sustained
ii. continue to make progress in the investigation and prosecution of the financing of terrorism
“Both items can be addressed through a focus on the three priorities I identified of effective use of technology, domestic coordination and international cooperation.
“I wished to highlight the issue of the grey-list before I concluded my speech because of the international attention and focus on Nigeria. It is a fact that we are perceived as a high-risk jurisdiction for a number of very serious crimes and some of this perception is due to the message we send out. It is important that we develop a counter-narrative which promotes the excellent work and results that all our law enforcement agencies and security services are delivering.
“From our efforts to combat terrorism and banditry to the disruption of drug trafficking networks and the fight against serious organised criminal group, we are making progress and we must not be more vocal about these successes.
“Let me conclude by reaffirming the commitment of the NFIU to supporting all of the agencies in this room. To providing you with the credible and timely intelligence you need to carry out your mandates. And to working with all of you in the spirit of
cooperation, coordination and collaboration.
“I would like to thank you all for your presence today and for your willingness to also support us by providing your honest feedback and valuable insight and input into how we can work together for the betterment of our country and for the safety and security of our citizens. I wish you all a good morning and productive deliberations over the rest of the day.”
