The Central Bank of Nigeria (CBN) has rejected plans by the Senate to enact new anti-money laundering laws without required amendments of the existing Money Laundering (Prevention) Act 2011.
In his submission on the legislative proposals, Governor of CBN, Godwin Emefiele said an amendment of the existing Money Laundering (Prevention) Act 2011, will better serve the interest of Nigerians than a repeal and re-enactment.
Emefiele, who was represented by a Director of the apex bank, Chibuzor Anthony Efobi said: “Where the existing Money Laundering (Prevention) Act 2011 is repealed and re-enacted, there will be new legal foundations, which have not been assessed against the FATF standards.”
This, he said, was capable of opening up the new law to deficiency in other areas not limited to those identified in the Mutual Evaluation Report, saying: “Additionally, the new law will have to be completely reviewed by the FATF and GIABA for compliance with FATF recommendations.
“There will be a risk that the international assessment identifies new gaps which would lead to rating downgrades. Consequently, the CBN is opposed to the passage of the proposed bills for the repeal and re-enactment of the existing Money Laundering (Prevention) Act 2011,” he stressed.
MEANWHILE, the Nigerian Navy and the Economic and Financial Crimes Commission (EFCC) have declined endorsing the proposed criminalisation of ransom payment to abductors, terrorists and kidnappers to secure the release of hostages.
A representative of the Chief of Naval Staff, Rear Admiral K. O. Egbuchulam, who spoke at the National Assembly, Abuja at a public hearing on Terrorism Prevention Act (Amendment) Bill 2021, had sought banning of ransom payment for release of victims of abduction.
The hearing was organised by the Opeyemi Bamidele-led Senate committees on Judiciary, Human Rights and Legal Matters and Anti-Corruption and Financial Crimes.
Section 14 of the bill provides that “anyone who transfers funds, makes payment or colludes with an abductor, kidnapper or terrorist to receive ransom for the release of victims, who have been wrongfully confined, imprisoned or kidnapped is guilty of a felony and is liable on conviction to a term of imprisonment of a minimum of 15 years.”
But Egbuchulam said instead of criminalising payment or negotiation of ransom, it should be subjected to security vetting, adding: “It is suggested that the Bill could make the negotiation and proposed payment of ransom to kidnappers or terrorists to release hostages, subject to the prior knowledge of the Office of the National Security Adviser (ONSA), Armed Forces and the Nigeria Police for coordination.
Also, Director, Legal and Prosecution Department of the EFCC, Chile Okoroma, commended most provisions of the Bill, but opposed prosecution of people, who pay ransom.
Speaking, Bamidele canvassed outlawing of payment of ransom to abductors, kidnappers and Terrorists for release of those, who have been wrongly confined or imprisoned.
