Cosmetic versus substantive compliance with the global anti-money laundering and terrorism financing laws: the case of Nigeria
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Date
2020
Authors
Olaoye, Olufemi Abiodun
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Abstract
Nigeria has made considerable efforts to ensure that its anti-money laundering and combating financing of terrorism (AML/CFT) laws comply with global standards. Impressively, Nigeria recently managed to have its name removed from an international blacklist of countries whose record for money laundering compliance fell far beyond the standards. Despite the robust appearance of Nigerian legal frameworks, money laundering and terrorist financing remain endemic within domestic terrain. While global approach is indispensable to combating money laundering and the financing of terrorism, the dynamics of a developing country like Nigeria present an enormous challenge. Beyond elaborate laws, it is imperative that proper attention be focused on the substantive implementation and enforcement of those laws. Challenges that have plagued Nigeria for decades include corruption, political interference, weak domestic institutions, worsening socio-economic conditions, and a lax regulatory environment. Unless these problems are tackled, Nigeria’s AML/CFT laws will only be strong on paper.
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Money laundering, Terrorism financing, Weak institutional enforcement, Political will and corruption