This is not the best of time for Nigeria over suspension of the Nigeria Financial Intelligence Unit (NFIU) from Egmont Group as the nine-member committee set up by the Federal Government on the matter is about to submit two reports, The Daily Times can now authoritatively report.
A source close to the committee also confided in The Daily Times that there is a crisis of confidence among the members of the committee, saying that the committee is now polarised into two camps.
The chairman of the committee, Senator Chukwuka Utazi, is said to be leading some members and will likely submit a majority report.
The source, who spoke in confidence, added that the Utazi-led group will likely recommend that the NFIU should stand alone, removed from the control of the Economic and Financial Crimes Commission (EFCC) and should either be domiciled in the Central Bank of Nigeria (CBN) or the National Intelligence Agency (NIA).
But the source said the other group is kicking against the alleged domination of Sen Utazi, saying that the group is not pleased with a situation where the senator is allegedly forcing the committee to adopt Senate position on the matter.
The Senate had already passed a bill to that effect. The group is also said to be writing its minority report where it will recommend that the NFIU should not stand alone and that it should continue to remain in the EFCC as the ongoing amendment of the agency Act before the House of Representatives has addressed the issues raised by Egmont.
The group is also expressing fears that Nigeria may be expelled from Egmont for lack of synergy, saying that the country may be sanctioned for creating laws that are different from what it requested Nigeria to do before the suspension could be lifted.
The source said: “It is true that the committee is divided along two camps and they may likely present majority and minority reports to the Federal Government.
“Most of the members nominated to represent certain agencies in the committee are ignorant of the meanings and workings of Egmont Group.
So, their contributions to the committee’s works are limited. “The two groups are working in different directions and this is contrary to the purpose of setting up the committee.
“Another interesting thing during the committee proceedings is the sitting on the fence by the Chairman of the Independent Corrupt Practices and Other Related Offenses Commission (ICPC), Prof. Bolaji Owasanoye, whose nomination is subject to Senate confirmation.
“The man was silent over argument on methods of proceedings and what should be the acceptable recommendations of the committee.
“I think the man is afraid of rocking the boat, knowing that he will have to appear before the Senate for his confirmation hearing. Otherwise, his antecedents could have made the difference before the committee proceedings.
He is a well-respected in anti-graft community and he has discharged his responsibility without blemish during his days with the Presidential Advisory Committee Against Corruption (PACAC).”
It was further gathered that the committee met on Thursday where the draft copy of its recommendations were made available to some members. It was also gathered that the global practice is that Financial Intelligence Unit (FIU) is warehoused under certain bodies as over 100 countries FIUs are domiciled under some bodies while only four countries are having stand-alone FIUs like Ghana.
It was further learnt that Germany was expelled from Egmont when the country removed its FIU from police and domiciled it in Customs.
The Daily Times recalls that Vice President Yemi Osinbajo, who was then the acting president, had on August 5, 2017 constituted the nine member ad-hoc committee to reposition the NFIU to restore its membership on the Egmont group to prepare for the Financial Action Task Force (FATF) visit to Nigeria.
The members of the committee are Senator Chukwuka Utazi – Chairman; Hon. Kayode Oladele; Dr. Abdulahi Y. Shrug; a representative of the Federal Ministry of Justice and a representative of the Federal Ministry of Finance.
Other members of the ad-hoc committee are a representative of the Ministry of Interior; the Executive Secretary of the PACAC; a representative of the ICPC and a representative of the EFCC. The ad-hoc committee is to make recommendations and facilitate legal and regulatory measures to ensure the financial and operational autonomy of the NFIU.
It is also to recommend other necessary steps to be taken by the relevant stakeholders to ensure the restoration of NFIU’s membership on the EGMONT group.
The committee’s other term of referen ce is to advise on the implications, including financial or otherwise of the proposed membership of the Financial Action Task Force.
The committee will also advise the government on the steps to be taken in preparation for the proposed mutual self-evaluation visit of the FATA in November, 2017, and to make any other recommendations necessary to advance Nigeria capacity to the financial intelligence to fight crimes.
The committee was expected to conclude its work and submit is final report to by the end of August. The NFIU, an arm of the Economic and Financial Crimes Commission (EFCC), was suspended from the group at a plenary of the Heads of FIUs in Macao on July 5, 2017.
The Egmont Group of Financial Intelligence Units is an informal network of 154 national FIUs which provides a platform for the secure exchange of expertise and financial intelligence to combat money laundering, the financing of terrorism, and other related offences.
The NFIU helps tackle money laundering and monitor financial flows, a task eased by its membership of the Group whose members share intelligence relating to illicit flow and international finance.
