‘Why Nigeria, others must avoid financial action grey list’

The Director-General of the Intergovernmental Action Group Against Money Laundering in West Africa (GIABA), Mr. Edwin Harris has said countries in Africa must do everything possible to avoid being on the financial action task force (FATF) grey list by strengthening anti-money laundering and countering terrorist financing (AML/CFT) efforts. GIABA, a specialised ECOWAS agency has been […]

The Director-General of the Intergovernmental Action Group Against Money Laundering in West Africa (GIABA), Mr. Edwin Harris has said countries in Africa must do everything possible to avoid being on the financial action task force (FATF) grey list by strengthening anti-money laundering and countering terrorist financing (AML/CFT) efforts.

GIABA, a specialised ECOWAS agency has been championing anti-money laundering initiatives among West African countries in the last 25 years.

Daily Trust reports that the FATF grey list countries are classified as jurisdictions under increased monitoring.

Nigeria was placed on the list in 2023 as a jurisdiction under increased monitoring while the country was expected to strengthen its Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) activities.

It would be recalled that the DG had disclosed that Nigeria would exit the FATF grey list this month. He spoke in Guinea Bissau during the Regional Training of Journalists on Investigative Reporting of Economic and Financial Crimes in West Africa.

Speaking with Daily Trust at the conclusion of the training which held recently in Bissau, the Guinea Bissau Capital, Harris said while the FATF list is not a punitive list, it is a disincentive to investment.

“If you are on the grey list, when it comes to anti-money laundering, you’re not too strong, I’m not too sure I can invest my money in your country. That’s why it’s not good for a country to go on the grey list, to do all they can to maintain the balance,” he said.

Harris stated that as GIABA celebrates 25 years of establishment this year, the body has been successful in establishing financial intelligence units across the region.

He said, “We have provided training for judges, journalists. We have written several topologies and research to assist. We have brought to bear in the public space the issue of financial crimes and its impact, and how it impacts negatively on the governance process, peace and stability, for instance, take you for  Nigeria, take the issue of terrorism and things like that.

 

“You know the negative and adverse impact on the governance process. So, all we continue to do since 2000 is to assist national governments or federal government in whatever context to strengthen their own regulatory frameworks to fight these menaces that have impact on our governance, on our peace and prosperity.”

 

He stated that having learnt a lot in the last 25 years, the group had given valuable tools to member states and all stakeholders including the government, the private sector, the media, civil society, “in having a concerted effort and fight against  terrorist financing and money laundering.”

 

He stated that the FATF recommendations representation the gold standard for every country in the world to adopt in the fight against money laundering and tansnational crimes.  

 

He explained that one of the challenges in the fight against money laundering is in the informal sector where 80 per cent of the economy is cash-based.