Govs’ suit can’t stop our operations – NFIU – TheNigerialawyer

• Says we are dealing with banks, not with government
• Agency plans to stop foreign exchange cash transactions

The Nigerian Financial Intelligence Unit has said it will soon
put in place instruments to “tamper with” financial transactions
and withdrawals by states and the federal governments as part of
its mandate to curb money laundering.

The unit insisted that the ongoing legal action taken by the
state governors against the guidelines on local government funds
would not prevent it from carrying out its statutory
responsibility, noting that it would also monitor financial
transactions by local governments.

The NFIU Director, Mr Modibbo Hamman-Tukur, who disclosed this
in a telephone interview with our correspondent on Monday,
explained that the case of diversion of local government fund by a
state government had been addressed, adding that tighter fiscal
control had been put in place to prevent a recurrence.

Hamman-Tukur, however, said stronger action would be taken
against the state if it again breached the NFIU guidelines.

He stated, “We have spoken to the banks and they confirmed that
the case of violation happened at the state capital level and they
took immediate action to rectify it and from what we see, it cannot
happen again, but if it happens (again), we have to take a stronger
action.”

When asked what specific action the unit would take against the
state, the director said, “The action we will take is in the
guidelines; we will just take it to the next level. Our action with
regard to money laundering and prevention of it extends up to
functions, irrespective of what other people say.”

Unit planning to stop forex cash
transactions

The Financial Intelligence Unit boss further said the agency
planned to also take action against shell companies, noting that
foreign exchange cash transactions in the country would soon be
stopped.

The anti-graft agency explained that it had been working mainly
with financial institutions to prevent diversion of public funds
and money laundering, noting that the mandate of the state
governments was different from its own.

While defining the states’ mandate which it said included
control, application and use of funds, the NFIU explained that its
own responsibility was to address the vulnerabilities, risks and
trends associated with stealing of the funds.

He stated that NFIU would take action if there was
vulnerability, regardless of the opposition to its decision.

The unit argued that the state governments could not stop its
work, pointing out that it was working with banks which were the
institutions that could sabotage its operations.

Hamman-Tukur stated, “We work with the banks, so unless the
banks sabotage it, there is no way they can stop us and you know
the control of banks is vested in the Federal Government. They
(governors) have their own issues and complaints, but our mandate
is different from that of the state government.”

He added, “If there is vulnerability, whatever they say, we have
to take action and local government fund is not the only area (we
are focusing on). We are also coming on shell companies; we would
also tamper with cash withdrawals by the federal and state
governments later.

“There are other measures, including transactions in foreign
exchange which is predominantly cash now, which we would have to
stop because our currency is now denominated in the almighty US
dollar.”

Speaking on the resistance to the guidelines preventing states
from taking local government funds, the NFIU boss hinted that he
had observed almost 90 per cent compliance.

Some LGs voluntarily remitting funds to
states

He, however, revealed that some LGs were sending money back to
the state governments after receiving their statutory allocations,
adding that this was not easy for the NFIU to curb.

Hamman-Tukur expressed concern over the development, insisting
that the NFIU would not condone the situation except in cases of
mandatory deductions like remittances to the State Universal Basic
Education Commission.

He explained, “Almost all of them (LGs) are returning money
voluntarily. Like money for the Local Education Authority, after
receiving the money, the local governments are returning the share
that belongs to SUBEB.

“The local governments are obliging to mandatory deductions, but
whatever that is left to them is their money and they are using it
and many of them, most especially in the North, are using it to
fight little problems.

“You will agree with me that in the last two months, there is
macro-stability we are experiencing though not on a high scale, the
environment is settling down.

“We are just putting instruments to start monitoring directly,
both the withdrawal and transactions. We understand that the state
governors are willing to continue with the court cases because they
feel that we are interfering with their mandate but our mandate is
different from their own. Their mandate is control of the funds
while our mandate is (stopping) money laundering; our work is
completely different from their own.”

Culled from Punch

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