Bank debtors get two-week ultimatum

The Economic and Financial Crimes Commission has given debtors of the recently bailed out banks two weeks to pay up or face the consequences.

This ultimatum is coming after reports from the affected banks that most of the debtors have reneged on their promise to pay up within a stipulated time.

Also, the Chairperson of the commission, Farida Waziri, on Monday, said the agency will henceforth focus its attention on Other Financial Institutions (OFIs) such as mortgage firms and discount houses in its efforts to purge the country of money laundering and terrorism financing.

According to a statement from the EFCC, signed by the spokesperson, Femi Babafemi, the commission said, “It is worrisome that those that made part payments with a promise to pay up within a certain period following the intervention of the EFCC have failed on their own terms.

It is, therefore, necessary to remind them that the recent withdrawal of the EFCC operatives from the affected banks should not be misconstrued or taken advantage of.” The statement added that the loans still reek of criminality and warned that all concerned should make haste to fulfil their own part of the bargain so as not to be taken unawares.

He said “Since our investigation of the criminal flavour of these loans is still on-going, we therefore wish to warn those that have reneged on the repayment terms not to be taken by surprise at the end of the latest two weeks grace when the commission shall again move decisively against defaulters.

“It is our wish to round off our operations in the affected banks by the end of the year so that the banks can run smoothly without any further interference from next year.

“As such, it is imperative that all concerned should make haste to fulfil their promises to enable the commission concentrate fully on the prosecution of those already found culpable.”

EFCC extends dragnet

The other financial institutions, which have become potential weak link in the war against money laundering in Nigeria, include: discount houses, primary mortgage institutions and micro finance banks.

Mrs. Waziri who was represented by Emmanuel Akomaye, Secretary to the Commission, made the remark at the Anti-Money Laundering/Counter Terrorist Financing training/seminar, organised by the EFCC through the Nigerian Financial Intelligence Unit, for other financial institutions.

She said “Focusing on the OFIs or strengthening AML/CFT measures within the OFIs sector will help us weed out unscrupulous operators who have brought disrepute to other sectors; enhance business transparency and promote legitimate private business growth; provide a fair and enabling environment for all OFIs operators; increase investors’ confidence, thereby attracting more investment and facilitate the prevention and detection of money laundering and all associated predicate offences.”

According to her, evidence shows that criminals are gradually moving towards other financial institutions to commit crime because of the relatively weak regulations.

Curbing money laundering

“The stigma of being the weak link does not bode well for the OFIs sub-sector, the professions within the sub-sector and indeed the overall implementation of Nigeria’s AML/CFT regime,” Mrs. Waziri added.

She lamented that money laundering and the associated offences are the major problems afflicting the country’s development. “These crimes have had adverse impact on national development and the country’s standing within the international community. In Nigeria, the negative impact of these crimes has manifested in reputation damage to the image of the country, loss of foreign direct investment, poor infrastructural development, dwindling confidence and distortions in our political as well as financial and Designated Non Financial Systems, among other things.”

Mrs. Waziri urged the participants and other stakeholders to cooperate and partner with the Nigerian Financial Intelligence Unit by fulfilling their obligations under the relevant laws and regulations in order to effectively confront the menace of money laundering, terrorism financing and other related crimes in the country. “Cooperation and partnership are necessary to consolidate and build on the progress so far made in this regard,” she said.

Norman Wokoma, Director of the intelligence unit, charged the participants to imbibe the lessons from the training, which should reinvigorate them in ensuring a better society.

The two-day seminar/training has, among its objectives, creating awareness on Anti-Money Laundering/Counter Terrorist Financing among the operators of discount houses, primary mortgage institutions, primary mortgage instituions and micro finance banks. It is also aimed at enhancing the operators’ responsiveness to their obligations under the Anti-Money laundering (Prohibition) Act, 2004 and guide the operators of the institutions on filing cash transactions, foreign transactions and suspicious transactions reports.