EFCC and Fight Against Money Laundering in Nigeria

EFCC and Fight Against Money Laundering in Nigeria Between 2013 and 2014

ABSTRACT

The research topic on EFCC and the fight against money laundering in Nigeria between 2013 and 2014 aimed at determining the effect of EFCC participation on the alleviation of money laundering in Nigeria. the study looked at the concept of money laundering and some theories to back it up, the primary data was used for the research work, and chi-square was used for the analysis; the p-value of 0.00 which is less than 0.05 level of significance we concluded that there is a significant effect of EFCC participation in the alleviation of money laundering on the economic development of Nigeria.

Major recommendations were made on the level of crises in Nigeria since it was discovered that most of the terrorist attacks on Nigeria were masterminded by money looters in Nigeria.

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF STUDY

Money laundering in Nigeria has become something else in recent times; there has been an endless war against corruption and money laundering. Money laundering is usually found mostly in the federal government parastatals. A fight against money laundering has always been a lost battle but the EFCC is doing its best to bring it to a minimum if not resolve it.

Money laundering is an act of taking money that is not duly assigned to you. The money might be for the budget. There was a memo as of November 20, 2014, submitted by the Chief of Air Staff, A.N. Amosu, that revealed that Mr. Eze had on November 4, 2014, submitted a proposal to the office of the National Security Adviser proposing to supply the upgraded helicopters to the NAF. The tone of Mr. Eze’s letter, obtained by us, indicated that he was deeply involved in sourcing and supplying hardware to the Nigerian military as it is embroiled in a fight against Boko Haram militants. For instance, on August 18, 2014, alone, the sum of N26.68m in eight transactions; N178.54m in 43 transactions on August 19, 2014; N17.38m on September 3, 2014; N90.53m on November 11, 2014; N30.70m on November 11, 2014; N13.54m on November 26, 2014; N67m on December 5, 2014; and N10.80m on December 16, 2014, what are all these money for? There is money laundering all over Nigeria in recent times.

In the year 2013, the governor of Benue state was interrogated by the EFCC concerning some amount of money he is taking out of the country; the question was asked concerning the money, the governor told the EFCC of Nigeria that he was going to get foreign pigs for agriculture in Benue state.

According to Steel (2006), money laundering is said to be what it is because it shows how “illegal” and “dirty” monies are put through a cycle of transactions and washed, so it could come out as clean/legal money. This means that the source of this fund (illegal money) is obscured through succession transfers and deals that those same funds can eventually be made to appear as good money. In the Dictionary of Finance and Banking (2008), this term “money laundering” was referred to as a process where money is acquired illegally either through theft, drug dealing, etc, is cleaned so that it will appear to have come from a legitimate source. The origin of this “devil” (money laundering) could not be ascertained by anyone, but there are several opinions that it started several thousand years ago with Chinese merchants. In the words of silkscreen (1994) and Steel (2006), they claimed that it all started from Mafia Ownership of Laundromats, in the United States where they needed to prove the genuine source for their monies, as they earned their cash from extortion, prostitution, gambling, and bootleg liquor. Also according to silkscreen (1994), the development of money laundering was for trade, and Nigeria as a country is the center of money laundering in Africa. Nigeria’s historical record of exploitation goes as far back as when her people were used as slaves under the British colony and as an independent and sovereign country experiencing a transition from a military dictatorship to a democratic form of government after over 16years of military rule. Now, with the democratic form of government, money laundering is still on the increase. With this rate of scans in Nigeria’s financial sector, the law enforcement decided to come up with a legislative act called the money laundering (prohibition) Act 2004, this was followed by the Central Bank of Nigeria (CBN) Anti-money laundering compliance manual guidelines from Economic and Financial Crimes Commission (EFCC, 2003), Independent Corrupt Practices Commission ICPC, 2000). All agencies were changed with the responsibility of fighting against money laundering and enforcement of all laws dealing with economic and financial crimes in Nigeria.

1.2 STATEMENT OF PROBLEM

EFCC has been trying to bring down money laundering in Nigeria but it is difficult to fight against the parastatal that created the EFCC, the issue of money laundering is on the increase in Nigeria. ranging, money laundering through drugs, cheating, and stealing. Every administration that is coming in always promises to fight corruption but at the end of the day, they became corrupt or they make it worse. People have been crying; who could make it right. The federal government of Nigeria and the EFCC are fighting to bring down corruption in Nigeria.

1.3 RESEARCH QUESTIONS

1.  Will the EFCC’s participation in other activities makes them effective in preventing money laundering?

2. What are the roles of the federal government of Nigeria in fighting corruption?

3. Does corruption have any significant effect on the growth and development of Nigeria?

4. What are the importance of money of laundering?

5. What are the best ways of stopping money laundering?

6.  Does money laundering have a significant effect on future leaders?