The Egmont Group, an international body of 155 Financial Intelligence Units that provides a platform for the secure exchange of expertise and financial intelligence, meets from today, March 12, 2018, until Thursday, March 15.
A deadline to Nigeria to separate its National Financial Intelligence Unit from the EFCC lapsed yesterday, without Nigeria enacting a law that would have done so. The likely outcome of the Egmont Group’s meeting will be Nigeria’s expulsion from the group.
In July 2017, @EGFIU lost patience with #Nigeria and suspended the NFIU because of @officialEFCC's habit of leaking sensitive financial intelligence to the media.
@officialEFCC had also refused to cooperate in efforts to grant the NFIU operational independence.
@officialEFCC had also refused to cooperate in efforts to grant the NFIU operational independence.
recognises four types of FIUs – the judicial model; the law enforcement; the administrative model; and the hybrid model which combines elements of at least two of the FIU models.
#Nigeria runs the law enforcement model where our FIU is domiciled within the prosecutorial agencies, and since joining @EGFIU has domiciled the NFIU within @officialEFCC.
The NFIU's independence has been a matter of contention since around 2015 as @EGFIU has felt that there is the risk that the unit may, or already be subject to political interference.
However differences in key blocs in @nassnigeria and @AsoRock, stymied reform efforts.
Last minute efforts to push through the law led to both houses rushing a reconciled version of the bill through confirmatory votes less than a week to @EGFIU’s March 11, 2018 deadline.
Last minute efforts to push through the law led to both houses rushing a reconciled version of the bill through confirmatory votes less than a week to @EGFIU’s March 11, 2018 deadline.
Despite @nassnigeria’s best efforts, the harmonised bill hasn't been signed by @MBuhari.
Multiple sources have indicated that this unwillingness to sign the bill is rooted in a desire to retain the NFIU within @officialEFCC as a ready tool to wield against perceived opponents.
Multiple sources have indicated that this unwillingness to sign the bill is rooted in a desire to retain the NFIU within @officialEFCC as a ready tool to wield against perceived opponents.
#Nigeria’s possible expulsion from @EGFIU will be a devastating blow for our international financial transactions, made worse by the country’s recent drop in @anticorruption’s Corruption Perception Index.
Our financial institutions could be blacklisted, affecting their ability to issue payment cards for international transactions.
With @cenbank’s tight regulation of domestic transactions, the international transaction portfolio has subsidised most banks' card business.
With @cenbank’s tight regulation of domestic transactions, the international transaction portfolio has subsidised most banks' card business.
This income is threatened by the potential suspension, and that will affect domestic electronic transactions under the current price regime.
Banks will have to access offshore facilities at a premium, making such funds more expensive. The cost will be passed on to customers.
Banks will have to access offshore facilities at a premium, making such funds more expensive. The cost will be passed on to customers.
An expulsion could also affect individual Nigerians' ability to take part in international transactions.
First to be hit would be bulk traders and e-commerce firms who will be forced to rely on cash to import their goods, raising their risk profile.
First to be hit would be bulk traders and e-commerce firms who will be forced to rely on cash to import their goods, raising their risk profile.
An expulsion could also have an adverse effect on the fight against corruption.
One of the key drivers of corruption in #Nigeria is the relative ease with which persons are able to launder vast sums of money outside the country.
One of the key drivers of corruption in #Nigeria is the relative ease with which persons are able to launder vast sums of money outside the country.
This ability depends on foreign partners who would not be affected by an expulsion, and the ability to trace such monies is dependent on information from financial intelligence units abroad.
Another lesson for #Nigeria here is that appearances matter.
The optics are terrible in how the country has left this matter to the very end, with a mad dash to pass the bill.
The optics are terrible in how the country has left this matter to the very end, with a mad dash to pass the bill.
What this serves to underscore is the level of seriousness that #Nigeria accords to issues of significant national and international interest.
It also indicates of how far down the line our lawmakers look in terms of trying to understand the real life impact of their actions.
It also indicates of how far down the line our lawmakers look in terms of trying to understand the real life impact of their actions.
has, as of 9 March, passed the reformed NFIU law as demanded by @EGFIU.
However, that it took this long to happen shows our lack of ability to focus on what is important.
Download the complete report - sbmintel.com/wp-content/upl…
However, that it took this long to happen shows our lack of ability to focus on what is important.
Download the complete report - sbmintel.com/wp-content/upl…
