Egmont suspension: FATF threatens to suspend visit to Nigeria over requests
.• We are taking steps to meet commitments- FG
The Financial Action Task Force (FATF) has threatened to suspend its planned high-level mission visit to Nigeria between November 20 and 21, 2017 over the failure of Federal Government to implement Egmont Group requirements.
The Egmont Group of Financial Intelligence Units had in July this year suspended Nigeria from the group for her failure to meet its commitment to qualify for membership and gave the federal government till December this year to meet the conditions.
A statement by Special Adviser, Media and Publicity to the Attorney General of the Federation (AGF) and Minister of Justice, Mr Salihu Othman Isah on Sunday said the latest warning was contained in a recent letter from FATF to the AGF Abubakar Malami (SAN).
Isah further claimed that the FATF stated that “the serious consequences will begin by suspending its planned high level mission visit on November 20th-21st, 2017 to determine whether Nigeria has met the FATF standard.”
But the AGF spokesman said that the Federal Government is not resting on its oars to do the needful to attain the FATF demand on the Nigerian Financial Intelligence Unit (NFIU) to qualify it for membership under the Egmont Group of FIUs.
To achieve this, an adhoc-committee chaired by the chairman, Senate Committee on Anti-Corruption and Financial Crimes Senator Chukwuka Utazi, set up to ensure that Nigeria meets the requirements as demanded by Egmont Group and FATF has submitted its report to the presidency.
It said that the purpose of FATF visit in November is to confirm Federal Government’s level of commitment to its objectives, especially its standards but that FATF has continued to
express concern of Nigeria’s repeated failures of its Financial Intelligence Unit (FIU) which may still lead to its suspension.
According to statement ,FATF secretariat in France through a letter signed by its President, Santiago Otamendi, dated 29 August 2017 titled, ‘Suspension of Egmont Group membership status of the Nigerian Financial Intelligence Unit’, also affirmed that the visit will provide FATF member nations the assurance that Nigeria is ready to undergo a successful mutual evaluation within three years.
The letter reads thus: “I have been informed by the President of the Egmont Group of Financial Intelligence Units, Mrs. Hennie Verbeek-Kusters, of the recent suspension of the Nigerian Financial Intelligence Unit’s Egmont Group membership status, following the Egmont Group’s decision of July 5th 2017.
“I would like to share with you our serious concerns regarding the reasons that motivated this decision, notably the repeated failures of the FIU Nigeria to address concerns regarding the protection of confidential information as well as concerns about the legal basis and the FIU’s independence via-a-vis (sic) the Nigerian Economic and Financial Crimes Commission (EFCC). These issues are indeed core elements of the anti-money laundering and counter-terrorist financing framework promoted by the FATF recommendations.
“These issues could, therefore, have implications on the Federal Republic of Nigeria’s membership process for the FATF, if not addressed timely and properly ahead of the High-Level Mission originally scheduled for 20-21 November 2017.”
“The purpose of this visit is indeed to confirm the Federal Republic of Nigeria’s high level commitment to the FATF objectives, including full and effective implementation of FATF standards, and to provide FATF members with the assurance that Nigeria is ready to undergo a successful mutual evaluation within 3 years.”
“In order for this membership process to move forward, I would encourage the Federal Republic of Nigeria to take all necessary measures to address these concerns and ensure that conditions for a successful High Level Mission are met before November 2017. I look forward to hearing from you on the steps taken by the Nigerian Government to further demonstrate your commitment to FATF”, the secretariat concluded.
The Daily Times recalls that the Egmont Group at its 24th Plenary of the Group held in Macao, a Chinese Special Administrative Region (SAR) from July 2-7, 2107, and chaired by Mr. Sergio Espinosa, chair of the Egmont Group, suspended Nigeria for lack of the independence of the NFIU from the Economic and Financial Crimes Commission (EFCC).
Besides, its decision by consensus to clampdown on Nigeria arose from repeated failures on the part of the NFIU to address concerns regarding the protection of confidential information, specifically related to the status of suspicious transaction report (STR) details and information derived from international exchanges.
The Group however, expressed its hope that the Nigerian authorities will address these concerns to enable it lift the suspension as soon as possible.
About 354 participants representing 112 Financial Intelligence Units were in attendance at the meeting.
