The Acting governor of Central Bank of Nigeria(CBN) Sarah Alade has said that over 80 per cent of money laundering related crimes are traceable to banks,.
She said this while delivering an open remark for the regional course on combating money laundering and other financial crimes organized by the West African Institute for Financial and Economic Management (WAIFEM) in Abuja. “Bank facilities are used knowingly and unknowingly to further the act of money laundering and in most cases to retain the proceeds of such crime”.
Represented by the Director, Research of the CBN Charles Mordi, Alade said that “Over 80 per cent of the proceeds of money laundering are associated with banks, one way or the other, all over the world.”
She listed round tripping, financial fraud, capital flight, fake cheques, fake currency minting, advanced fee fraud and insiders abuse as examples of financial related crimes and money laundering.
“Effects of money laundering and related economic and financial crimes cause distortions in the financial markets through misallocation of investment,” adding that the financial fraud related crimes, have caused “Deleterious macroeconomic consequences such as inexplicable changes in money demand, prudential risks to banks soundness, contamination effects of legal financial transactions and increased volatility of international capital flows and exchange rate due to un anticipated cross-border asset transfers.”
She however, warned that money laundering has serious implication, stressing, “When a country’s commercial and financial sector are perceived to be associated with the incidence of organised crimes, it could affect Foreign Direct Investment.”
In his remarks, Director General of WAIFEM Prof. Akan Ekpo identified money laundering as a threat to financial stability in any economy, especially, to small and fragile economies like the ones in the sub-region.
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