By Franklin Alli & Peter Egwuatu
Posted to the Web: Monday, September 26, 2005

Accordingly, the Federal Executive Council has approved the establishment of a special department under the Federal Ministry of Commerce to tackle money laundering through surveillance of non-designated financial institutions – jewelry shops, hotels, car shops, boutiques, casinos and car dealers.

Minister of Information and National Orientation, Mr. Frank Nweke Jr., who disclosed this to newsmen said the non-designated financial institutions were areas through which people who engage in money laundry channel their money to foreign banks.

Meantime, the Economic and Financial Crimes Commission (EFCC) has raised alarm over the increasing cases of money laundering in the country, attributing it to the limitations of the money-laundering Act of 1995.

Executive Chairman of the Commission, Mallam Nuhu Ribadu, speaking at the African Regional Market Training Programme in Abuja, weekend, said: “Money laundering is a relatively new offence in Nigeria’s criminal jurisprudence. It was seriously addressed for the first time following the enactment of the Money Laundering Act of 1995. This legislation was limited in scope, as it only affects offence that was drug related.

Speaking in Lagos, however, Minister of Information said people who engaged in money laundering channelled their money to foreign banks. Based on this, he said under the Money Laundering Prohibition Act 2004, Federal Ministry of Commerce was charged with the responsibility to monitor non-designated financial institutions.

“You know that if you go and buy jewelry, there are some jewelry you have that are worth more than 10 to 20 million dollars. There are some watches you have that are valued at $10 million.
“Some people go to gamble in casinos. Government is interested in knowing where the money they use in gambling comes from, and how come they are gambling with 10 to 20 million dollars?” he said.

Nweke said move by government to check activities of operators in this sub sector, was in line with the implementation of the money laundering act. “This department would be monitoring activities of money launders and bring culprits to book. The intent is to remove the country from the Financial Action Task Force list,” he said.

The minister at the launch of KPMG Africa Fraud and Misconduct Survey 2005, however, indicted Swiss banks for accommodating stolen moneys from Nigeria and other countries around the world
Acknowledging that fraud is still a major problem in public and private sectors in the country, the minister said attention ought to be paid to Swiss banks for accommodating stolen public funds.

“Nobody is talking about Swiss banks who habour money stolen from the country. I think they are more corrupt than Nigerians because if they do not collect, people will stop depositing stolen moneys there and this will reduce fraud,” he said.

According to him, no country among the comities of nations is free of con men, adding: “The administration of President Olusegun Obasanjo has zero tolerance for corruption, and is working hard to see to it that fraud is reduced to the barest minimum.”