Regulating trade-based illicit financial activities in Nigeria

Abstract

Money laundering is one of the three main trajectories of illicit financial flows globally, ravaging the financial institutions and global economic systems. Tradebased laundering of illicit funds has become a global threat. This is predicated on the rapid evolvement in business transactions. The research examined regulating tradebased illicit financial activities in Nigeria. It examined the extent to which laws and regulations in Nigeria have helped in curbing its effects. Furthermore, the research examined effects that laundering of illicit funds has in Nigeria in general terms, and if any, the effects trade-based laundering specifically on the Nigerian economy. The measures that need to be put in place within the African Continental Free Trade Area (AfCFTA) regional framework to curbing trade-based laundering of illicit funds that may arise therefrom were also examined. The transactions that form basis of tradebased laundering of illicit funds in Nigeria and the extent to which Nigerian Money Laundering (Prohibition) Act, 2011, the Palermo Convention, and the (FATF)’s (40) Recommendations have helped in curbing same. It is recommended that in order to curb TBML in Nigeria, all agencies of government that involve in trans-border transactions must work together as a team. Also to curb the prevalence of the predicate offences, the flow of money (through laundering business) must be curbed as money is the life blood of all criminal activities. It is further recommended that the Nigerian Money Laundering (Prohibition) Act, 2011 should be amended to incorporate transactions-based related offences. It is also recommended that there should be a strong and coherent law or regulation within the African Continental Free Trade Area (AfCFTA) that will address trade-related laundering of illicit funds that may ensue upon its implementation. Also a technical committee that will ensure it compliance coupled with political will is to be established.