Experts blames Banks for Money Laundering

Banks in the country have been blamed for the increase in money laundering activities as proceeds of illicit schemes were taken away to other counties through the financial institutions. Mr. Nathaniel Cole, Chief Executive Officer (CEO), Forensics and Compliance Institute (FCI) in an interview with Vanguard, Thursday revealed how money are being carted away through banks.

According to him “ The money looted by fraudsters are siphoned to other countries through banks. Nobody can say that the fraudsters took away money from Nigeria to other countries by carrying big bags, otherwise known as “Ghana must go”. So if officials of banks are well trained to check those illegal schemes, then money laundering will be radically reduced or even cease to exist.

He harped on the need for the government to have regulatory reviews and reforms in order to have closer scrutiny and detailed examination of financial statements. He further disclosed that the fight against corruption will not succeed until the use of banks as a source by which money is being laundered out of the country is blocked.

He lamented a situation whereby the Economic and Financial Crimes Commission (EFCC) are claiming that it is fighting and prosecuting money launderers without prosecuting the banks through which the money is being laundered.

According to him, “If the conduit through which money is being siphoned out of the country is not blocked, there is no way in which Nigeria can effectively fight corruption. The banks are the major source through which funds are being siphoned out of the country, yet the EFCC have not announced that it is prosecuting a bank in relation with money laundering. Even when a United States agency sanctioned a Nigerian bank for money laundering, the EFCC still did nothing to the bank. This means that the EFCC is not carrying out its duties effectively.”

Speaking on the need to have forensic accountants to fight all sort of crimes committed through varying forms of unethical conduct, he stressed that forensic accounting should be routinely employed by banks, government and businesses to help check those illegal schemes.

According to him “ To bring perpetrators of money laundering to justice will require evidence that can stand the test of acceptability in a normal court of law. The forensic accountant will be increasingly under pressure to provide such proof.”

To this end, Cole disclosed that FCI is organising a training programme in collaborating with the Institute of Chartered Accountants of Nigeria (ICAN) to educate accountants and other professionals on forensic accounting.

The programme which commences February 23 is designed to develop skills and knowledge needed to effectively combat financial crimes, frauds, fraudulent financial statements, occupational frauds and also help in strengthening corporate governance in organisations and strengthen related controls among others.

The Forensics & Compliance Institute (FCI) is a subsidiary of C & B Associates Consulting, (C & B) USA.

Source: www.vanguardngr.com ; by eter Egwuatu & Michael Eboh