Money laundering control: Re-thinking exit strategy

Money laundering is a generic term that is used to refer to the process by which criminals disguise the original source, ownership and control of money by making the proceeds to appear to have been derived from a legitimate source. The Financial Action Task Force (FATF) on money laundering, an intergovernmental body combating money laundering […]

Money laundering is a generic term that is used to refer to the process by which criminals disguise the original source, ownership and control of money by making the proceeds to appear to have been derived from a legitimate source. The Financial Action Task Force (FATF) on money laundering, an intergovernmental body combating money laundering has this to say about laundered money “overall, it is absolutely impossible to produce a reliable estimate of the amount of money laundered”. 
Bearing the above in mind, then it will be easy for anyone to agree with the fact that the effects of money laundering in a developing country like Nigeria are so enormous to such an extent that policy makers and academicians have come to realize that none of Nigeria’s problems is unconnected to corruption and other financial crimes.
Over the years, government has taken various measures to address this problem. This ranges from enacting anti- money laundering laws to establishment of agencies to combat it. But, to what extent were this laws and agencies successful in reducing or eradicating the menace?  It is clear at this juncture that a common thread running through all their efforts is that their approaches are more of investigation, detection, probing and persecution. Could investigations, detections and persecutions be the real remedies to this problem, or do we need to change strategy?
I stand at this juncture to candidly say that to squarely address this problem; we need to change the strategy. We need to be proactive by embarking on preventive mechanisms rather than detective mechanisms. At least 75% of the efforts towards controlling money laundering should be prevention while 25% detection. Prevention here entails tracking the sources, following the routes and destinations.
The idea of “prevention is better than cure”,  I think may work here more than in the health sector. Furthermore, the presentation of a bill at the national assembly for the establishment of Bureau for money laundering control is really the right step at the right time and in the right direction.

Musa Ladan writes this piece from Abuja. He can be reached at [email protected]