Money laundering and financing of
terrorism are issues of critical importance to the world community. The West
African community sees this as an issue which should be vigorously checkmated
to avert in the sub-region the global restiveness in terrorism. It was on
this note that an organisation to handle this was established in the year
2000 but it was not until January 2006 that the statutes of the organisation were revised to reflect the increasing
link between money laundering and the financing of terrorism around the world
following the terrorist attacks against the United States of America on
September 11, 2002.
The Inter-Governmental Action
Group against Money Laundering in West Africa with the acronym GIABA was established by the
Economic Community of West African States (ECOWAS) Authority of Heads of State and Government in the year
2000 with headquarters in Dakar, Republic of Senegal. The creation of this
group was in response to fighting against money laundering. It is also a specialized
institution that is responsible for strengthening the capacity of member
states towards the prevention and control of terrorist financing in the region.
Apart from member states, it grants Observer Status to African and
non-African States, as well as Inter-Governmental Organizations such as the Central Banks of member countries,
regional Securities and Exchange Commissions, the African Development
Bank (ADB), the United Nations
Office on Drugs and Crime (UNODC),
the World Bank, the
International Monetary Fund (IMF), the Financial Action Task
Force (FATF), Interpol, the Commonwealth Secretariat, World
Customs Organisation (WCO), the European
Union among others that support its objectives and actions and which
have applied for observer status.
Some of these objectives are to ensure
the adoption of standards against money laundering and the financing of terrorism
in accordance with acceptable international standards and practices and function
as a forum where members can discuss matters of regional interest and share
experiences. Through this they protect
the national economies and the financial and banking systems of members
against the proceeds of crime and combat the financing of terrorism among
others.
The blueprint is laudable but the
implementation is the issue for further discussion here. In the mutual evaluation carried out
in May, 2014 by the group, Nigeria, Ghana and Senegal performed poorly as
they did not meet most of the recommendations of Financial Action Task Force
(FATF) on anti-money laundering and financing of terrorism in the continent.
Speaking at a press conference in Lagos, the Director, project and
programmes, Dr. Bruno Nduka who represented the Director-General Adama
Coulibaly said these countries did not perform well on their legal frame
work.
If these are what the fight
against money laundering and financing of terrorism is all about, GIABA has
not actually started. A drive along the West Africa corridors reveals that
financial transactions are done with impunity. Foreign currencies are easily
exchanged on the road side just like the sales of local groceries and delicacies
by those who may not be intelligent enough to interpret trends in
international trade. This is most prevalent along the francophone borders.
Using Seme border as a pilot project, a first time visitor will be astonished
on how these shabby looking local illegal bureau-de-change could carry out
financial transacts running into Millions of Dollars in a jiffy.
In the past these same people have
been of great assistance to fleeing coupists and government officials
involved in financial crimes or otherwise from Nigeria. What draws ones
attention to what may look like a pitiable sight in the recent time is the
rate at which these same Beninese ‘money changers’ besiege Nigerian banks at
the borders to carry out these illegal financial transactions in a huge scale
with careless abandon. The whole show is a total mockery to what one
considers as the anti money laundering and financing of terrorism by GIABA.
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