Mar.09, 2010

Any person who commits an offence under Section 15 (1) of the Bill for an Act to repeal the Money Laundering (Prohibition) Act 2004 and enact the Money Laundering (Prohibition) Act, 2009, will be liable on conviction to imprisonment for a term of not less than five years but not more than 10 years.

According to the Bill, which was presented to the Senate by Acting President Goodluck Jonathan last Tuesday and obtained by THISDAY yesterday, the offences include conversion and transference of resources or properties derived directly from illicit traffic in narcotic drugs and psychotropic substances.

Others are resources or property derived directly from participation in an organised criminal group and racketeering, terrorism, terrorist financing, trafficking in human beings and migrants smuggling, tax evasion, sexual exploitation, illicit arms trafficking, illicit trafficking in stolen and other goods, bribery and corruption and counterfeiting currency.

They also cover counterfeiting and piracy of products, environmental crimes, murder, grievous bodily injury, kidnapping, illegal restraint and hostage taking, robbery or theft, smuggling, extortion, forgery, piracy, insider trading and market manipulation and any other criminal act specified in the Bill (for Act) or any other legislation in the country, “which is predicate to money laundering with the aim of either concealing or disguising the illicit origin of the resources or property or aiding any person involved to evade the illegal consequences of his action.”

Also to receive the prescribed punishment are those, as stated in Subsection 1b of Section 15, who “collaborate in concealing or disguising the genuine nature, origin, location, disposition, movement or ownership of the resources, property or right thereto derived directly or indirectly from the acts specified in paragraph 1a of this subsection….”

The Bill provides in Section 15(2) that “A person who commits an offence under subsection 1 of this Section, shall be subject to the penalties specified in that subsection notwithstanding that the various acts constituting  the offence were committed in different countries of places.”

Other punishments prescribed in the Bill as contained in Section 16, including a director or employee of a Financial Institution making or accepting cash payments exceeding the amount authorized under this Act; or contravening the provisions of Sections 2,3,4,5,6, or 7 of this Act, range from imprisonment term of not less than 2 years but not more than 3 years to a forfeiture of 25% of the excess above the limits placed in section 1 of this Act in respect of making or accepting cash payments exceeding the authorized amount.

The authorized amounts, as contained in Part 1 (Prohibition of money laundering) and in Section 1 (limitation to make or accept cash payment) are N500, 000.00 or its equivalent, in the case of an individual; or N2, 000,000.00 or its equivalent, in the case of a body corporate.

On Duty to report international transfer of funds and securities in Section 2 (1), the legislation provides: “A transfer to or from a foreign country of funds or securities by any person or body corporate of a sum exceeding US$10,000 or its equivalent; or in the case Money Service Business, a sum exceeding US$2000 or its equivalent, shall be reported to the CBN, Securities and Exchange Commission or the EFCC in writing within seven days from the date of the transaction.”

Section 10 on mandatory disclosure by Financial Institutions provides in subsection 2 that “a person under a Financial Institution may voluntarily give information on any transaction, lodgment or transfer of funds in excess of N1, 000,000.00 or its equivalent, in the case of an individual; or N5, 000,000.00 or its equivalent, in the case of a body corporate.”

Subsection 3 states inter alia: “Any Financial Institution or designated Non-Financial Institution that contravenes the provision of this Section is guilty of an offence and shall be liable to a fine of not less than N250, 000 and not more than N1 million for each day the contravention continues.”

Section 13 on Surveillance of Bank Accounts empowers the Economic and Financial Crimes Commission, National Drug Law Enforcement Agency, Central Bank of Nigeria or other regulatory authorities to place any bank account or any other account comparable to a bank account under surveillance.

They are also empowered to tap any telephone line or place it under surveillance; obtain access to any computer system; and obtain communication of any authentic instrument or private contract, together with all bank, financial and commercial records, when the account, telephone line or computer system is used by any person suspected of taking part in a transaction involving proceeds of a financial or other crime.

This according to the legislation must be pursuant to an order of the Federal High Court obtained upon an ex-parte application, supported by a sworn declaration made by the Chairman of the Commission or an authorized officer of the Commission or Agency, Governor or an authorized officer of the CBN or other regulatory authorities justifying the request.

This is to enable them to identify and locate proceeds, properties, objects or other things related to the commission of an offence under this Act, the EFCC (Establishment) Act or any other law.

In explanatory memorandum, the Bill seeks to provide for the repeal of the money Laundering Act, 2004; make comprehensive provisions to prohibit the financing of terrorism, the laundering of the proceeds of a crime, or an illegal act; and provide appropriate penalties and expand the scope of supervisory and regulatory authorities so as to address the challenges faced in the implementation of the anti-money laundering regime in Nigeria.