Crime
Fear of overregulation as CBN raises bar into anti-money laundering
By Sodiq Adelakun
The Central Bank of Nigeria (CBN) has raised the bar on know your customer (KYC) protocols and charged financial institutions (FIs) on implementations.
However, the regulations raised questions on the line between KYC and the right to privacy with the Socio-Economic Rights and Accountability Project (SERAP) already giving the acting Governor of the Central Bank of Nigeria (CBN), Mr. Folashodun Shonubi, a three-day ultimatum to “immediately delete the patentially unlawful provisions” of the customer due diligence regulation asking banks to obtain information on customers’ social media handles for identification purpose.
“The CBN Regulations and directive to banks to obtain details of customers’ social media addresses violate Nigerians’ rights to freedom of expression and privacy. It is inconsistent and incompatible with the rule of law. The CBN ought to contribute to the advancement of respect for the rule of law and human rights in the discharge of its statutory functions, and not undermine or violate these fundamental legal requirements and standards. The purported mandatory requirement would inhibit Nigerians from freely exercising their human rights online. If obtained, such information may also be misused for political and other unlawful purposes,” SERAP argued in a letter to the apex bank.
The apex bank directed that Money Deposit Banks (MDBs) must obtain comprehensive information about customers, including social media handles as part of measures “designed to improve the ability of financial institutions to identify and monitor potential risks linked to customer activities.
“By including social media handles as part of the customer identification process, banks seek to gain further insights into customers’ online presence and activities, helping to assess potential risks and monitor for suspicious behaviour.
“For individuals, the CDD process now encompasses gathering information such as legal name, addresses (permanent and residential), contact details (telephone, email, and social media handles), date and place of birth, Bank Verification Number (BVN), Tax Identification Number (TIN), nationality, occupation, public position held, name of employer, official personal identification number and a unique identifier contained in a valid government-issued document bearing the customer’s name, photograph and signature,” the CDD guidelines stated.
The second document details actions the banks should statutorily take to identify and monitor PEPs and their relations to mitigate money laundering, financing of terrorism and proliferation financing (ML/FT/PF) as concerned individuals “may misuse their power and influence for personal gain or advantage to themselves, close family members and/or associates.”
The CBN’s move is lauded on the grounds of reducing the country’s vulnerability. But there are also concerns about overregulation, which experts said has negative consequences for efforts to reduce the bank’s financial inclusion drive.
Troops of the Nigerian Army deployed for special clearance operation in Sambisa Forest, have eliminated 11 Islamic States of West Africa Province (ISWAP) terrorists.
The Nigerian Army, in a statement on its official X Handle disclosed this on Saturday.
It said the feat was achieved in a coordinated special clearance operations with a hybrid force on terrorists’ enclave in Jongo Village within the notorious Sambisa Forest.
It said that the troops targeted the enclave, engaged the terrorists in a fierce gun battle, killing some while others fled in disarray.
The army said its troops further conducted exploitation ahead of the enclave, leading to the capture of some arms.
According to the post, the arms include 99 rounds of 7.62 x 54mm on metal link, 19 rounds of 7.62 x 39mm, 3 AK-47 rifle magazines, two 36 Hand grenades, and two locally made guns.
“This successful operation showcases the operational effectiveness of the Nigerian army in combating terrorism and securing in the region.
“The neutralisation of ISWAP terrorists and the confiscation of their weapons will undoubtedly contribute to enhancing security and stability in the area.
“This further demonstrated the commitment of the Nigerian military to eradicating terrorism and protecting the citizens,” it said.
A Federal High Court in Abuja on Friday ordered final forfeiture of at least 20 property linked to the convicted former Chairman of the defunct Pension Reform Task Team (PRTT), Abdulrasheed Maina.
Justice Joyce Abdulmalik, in a judgment, held that the Economic and Financial Crimes Commission (EFCC) had proven its case beyond reasonable doubt that the property, located in deferent parts of the country, were acquired illegally.
According to Justice Abdulmalik, the applicant effectively discharged its responsibility, under the law, to establish that the property were acquired with proceeds of crime.
The judge also held that the “various individuals, who responded to an earlier interim forfeiture order, requiring interested parties to show cause why the properties should not be permanently forfeited, failed to establish their ownership of the affected properties with credible evidence.”
Out of the 23 property listed in the schedule, three of them were left out, which include Flat 42C, SMC Quarters, Unguwan Dosa, Kaduna; Plot 18, Road F, on TPO 462B C of O Kd5469 and Plot of C of O Bo/426 Beacon B5086, B5087, B5105, B5104, B5099 Cadastral Zone B05 Utako.
The News Agency of Nigeria (NAN) reports that Maina’s wife, Laila, who claimed to be a citizen of the United States, and some of his relatives and associates, including Uwani Usman, Alhaji Aminu Yakubu Wambai, Haruna Mu’azu Musa and Aliyu Abdullahi, had claimed ownership of the 23 property.
The anti-graft agency had earlier obtained an order of interim forfeiture of 23 property linked to Maina, currently on eight-year jail term for pension fraud to the tune of N2 billion.
Delivering the judgment on Thursday, Justice Abdulmalik agreed with lawyer to the EFCC, Farouk Abdullah, that those who claimed to owned the property failed to effectively establish the alleged ownership by producing credible evidence.
She said: “It is trite in law that civil cases in non-conviction forfeiture are hinged on the preponderance of evidence.
“Again, I hold that the respondents have failed woefully in tilting the scale of evidential weight in their favour.
“In all, sequel to the facts and documentary detailed evidence relied on by the applicant (the EFCC) in support of this application for final forfeiture, I do hold that the evidential burden of proof indeed shifted to the claimants to establish by way of cogent documentary evidence, the sequential trail of the genesis of their finances leading to the buildup as well as the the acquisition of the aforementioned properties subject of interim forfeiture.
“In view of this grave omission on the part of the claimants (Maina, his wife and his associates) to show good and credible cause on the history of their legitimate earnings, I hereby find merit in applicant’s application for final forfeiture of properties Nos: 1, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 18, 19, 21, 22 and 23 set out in schedule one, attached to the order of interim forfeiture, save properties No: 3, 14 and 20. I so order.”
The affected properties are located in Abuja, Nasarawa, State Kaduna State and Kano State.
They include “Plot No: 965 Gwarimpa 1 District, Cadastral Zone: CO2, covered by C of O No: 1afew-fe28z-63a5r-e36eu-10.
“Duplex located at No: 16 A Katuru Road, Kaduna.
“52B, SMC Quarters, Unguwan Dosa, Lot 016, comprising of 3 bedroom semi-detached bungalow.
“Property at Tola Street, Badarawa, Kaduna, comprising of three bedrooms and an undeveloped land.
“Plot Y12, Kano Street, Kawo New Extension, Kaduna.
“A duplex located at No: 21, 52 Crescent , Kubwa Phase 1V estate
“House 8, 211 Road, a close numbered FHA/EST/264/TA/032.l, 3 bedrooms bungalow.
*Farm at Dorawa, Karshi Development Area, Karu Local Government Area, Nasarawa State.
“Another farm at Dorawa, Karshi Development Area, Karu Local Government Area, Nasarawa State.
“Plot 3A, Sambo Road, Unguwan Rimi, covered by C of O No: KD15452.
“Plot MF-27A, New Pasafi Layout, Kuje, Abuja.
“Plot 1B Ajayi Road, Unguwan Rimi, covered by C of O numbered: NC24059
“Block 23 Flat 2 located at Life Camp (2 bedroom semi-detached.
“Property at No: 62 A/C Maternity ward , Damaturu Road, Biu
“Plot 3A, Sambo Road, Unguwan Rimi covered by C of O No: KD15452 comprising of uncomplicated buildings.
“Plot covered by C of O B426 beacon: B5086; B5087; B5105; B5104; B5099 at Cadastral Zone B05, Utako.
“No: 16 Dabai Road, off Mangoro Road, Sokoto State.
“No. 13 Korau Road, Nasarawa District, Kano.
“Plot 965 Cadastral Zone C02, Gwarimpa, FCT, Abuja.”
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