The 2023 annual report from GIABA highlights Nigeria’s significant strides in enhancing transparency and accountability within its Non-Profit Organisations (NPOs) sector, as part of broader efforts to combat money laundering and terrorism financing. Here are the key points from the report:
1. **Progress in Compliance and Measures**:
– Nigeria has made notable advancements in addressing technical compliance issues identified in GIABA’s Mutual Evaluation Report (MER). This includes implementing recommendations to strengthen the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) framework.
– Measures have been undertaken to promote transparency and accountability in the administration and management of Non-Profit Organisations (NPOs). This includes raising awareness in the financial sector about vulnerabilities to Terrorist Financing (TF) and collaborating with NPOs to refine best practices.
– The country has demonstrated its capability in international cooperation by responding to requests for information on NPOs suspected of involvement in terrorist financing or other forms of support for terrorists.
2. **Challenges and Areas for Improvement**:
– Despite progress, challenges remain. The report notes inconsistencies in applying simplified due diligence measures relative to the assessed risks of money laundering and terrorist financing.
– There are also gaps in compliance with internal procedures related to designating targets pursuant to United Nations Security Council Resolutions (UNSCR).
3. **Regional Context and Other Member States**:
– The report discusses the Mutual Evaluation Reports (MERs) of other member states like Cote d’Ivoire, Liberia, and Guinea. These evaluations highlight areas where these countries need to improve their AML/CFT regimes to enhance effectiveness.
4. **GIABA’s Strategic Focus**:
– GIABA’s strategic plan for 2023-2027 emphasizes sensitization and awareness-building among stakeholders to strengthen AML/CFT regimes across West Africa.
– The organization continues to focus on protecting national economies and financial systems from crime proceeds laundering and combating terrorist financing, amidst evolving global threats.
5. **Director General’s Perspective**:
– Edwin Harris Jr., Director General of GIABA, underscores the vulnerability of the West African region to money laundering and terrorist financing. He stresses the importance of political commitment and stakeholder involvement in these efforts.
In summary, Nigeria’s efforts, as highlighted by GIABA’s report, reflect ongoing commitments to combat financial crimes through legislative and operational enhancements. The country’s collaboration with international bodies and adoption of best practices are pivotal in strengthening its AML/CFT framework and safeguarding its financial integrity.