Tag: Money laundering

  • CAC Seeks Unified Ownership Register to Tackle Illicit Funds

    CAC Seeks Unified Ownership Register to Tackle Illicit Funds

    Precious Nwonu, Enugu

    The Corporate Affairs Commission has called for the harmonisation and centralisation of Nigeria’s beneficial ownership registers to strengthen efforts to combat money laundering, illicit financial flows and the misuse of corporate structures.

    The Registrar-General and Chief Executive Officer of the CAC, Hussaini Ishaq Magaji, made the call on Tuesday in Abuja at a training on the Beneficial Ownership Register organised for journalists and civil society organisations.

    Magaji said Nigeria needed an interconnected system that would make it easier to identify the individuals who ultimately own, control or benefit from companies operating across different sectors.

    He said the fragmentation of ownership information across separate institutional databases could make it difficult to establish the full picture of corporate ownership.

    “Nigeria should work towards harmonising and centralising beneficial ownership information within a coordinated national framework, with the CAC corporate registry serving as the central corporate data backbone,” Magaji said.

    He stressed that the proposed harmonisation was not intended to strip other agencies of their statutory responsibilities, but to ensure that ownership information held by different institutions could be effectively connected.

    “This is not about taking away the legitimate statutory responsibilities of NEPZA or NEITI. It is about connecting the dots,” he said.

    The CAC currently operates a Beneficial Ownership Register, while information on entities operating within Free Trade Zones is maintained under the framework of the Nigeria Export Processing Zones Authority.

    Beneficial ownership information relating to companies in the extractive sector is also maintained under the Nigeria Extractive Industries Transparency Initiative framework.

    According to Magaji, the three systems essentially seek to establish the same information about the individuals behind corporate entities.

    “Ultimately, we are trying to answer the same fundamental questions: Who owns this entity? Who controls it? Who benefits from it? And who is the natural person behind the corporate structure?” he said.

    He noted that much of the underlying corporate information was already linked to records held by the CAC, making stronger coordination and interoperability among the relevant institutions necessary.

    ### CAC urges journalists, CSOs to scrutinise ownership data

    Magaji also urged journalists and civil society organisations to advocate for common standards, interoperability and improved access to beneficial ownership information while respecting legitimate privacy and data protection requirements.

    “To journalists and Civil Society Organisations: Your voice is needed in this conversation. We want you to interrogate this issue. Ask the difficult questions. Why should beneficial ownership information remain fragmented? Can we have interoperability between these registers? Can we establish common standards? Can we eliminate duplication?” he said.

    He described beneficial ownership transparency as an important tool for corporate accountability and the protection of public resources, rather than merely a regulatory requirement.

    The CAC boss said the register could assist journalists investigating companies, procurement arrangements, transactions and business relationships by helping them identify individuals who ultimately control corporate entities.

    He urged journalists to go beyond the names of registered directors when examining corporate structures.

    “When investigating a company, a transaction, a procurement arrangement or a business relationship, ask: Who owns this company? Who ultimately controls it? Who benefits from it? Are there relationships that are not immediately visible?” he said.

    Magaji disclosed that agencies including the Economic and Financial Crimes Commission, Independent Corrupt Practices and Other Related Offences Commission and National Drug Law Enforcement Agency had used beneficial ownership information in investigations and enforcement activities.

    He, however, cautioned journalists against assuming that the appearance of an individual’s name in a corporate record amounted to evidence of wrongdoing.

    “Information must be properly understood, independently verified and reported fairly and responsibly,” he said.

    ### CAC register free to access

    The Registrar-General said access to beneficial ownership information on the CAC platform was free, urging journalists and CSOs to use the resource for research and accountability reporting.

    “Access to the beneficial ownership data is free. We are deliberately making this information accessible because transparency should not become a privilege available only to those who can afford it,” he said.

    He said the effectiveness of the register should be judged by how the information was used to detect corporate abuse and strengthen accountability, rather than simply by the existence of the database.

    “Nigeria needs a transparency system that does not merely collect information, but connects information,” Magaji said.

    The CAC also announced plans to hold a Global Conference on Beneficial Ownership in Lagos on November 8, 2026.

    The conference is expected to attract about 200 delegates from 43 countries and will examine Nigeria’s progress in beneficial ownership transparency since its commitment at the London Anti-Corruption Summit.

    Magaji said the event would also provide an opportunity to discuss the next phase of reforms, including greater harmonisation, interoperability and effective use of corporate ownership data.

    “The world is watching Nigeria. Countries that are seeking to strengthen their own beneficial ownership systems are looking at our experience,” he said.

    The CAC Persons with Significant Control Rules, 2022, provide the framework for disclosing individuals who exercise significant ownership, control or influence over companies and other relevant entities.

    In Nigeria’s corporate legal framework, a Person with Significant Control refers to what is commonly known internationally as a beneficial owner.

     

  • Money laundering: Labour Party Campaign DG pays N13m, escapes two-year jail

    Money laundering: Labour Party Campaign DG pays N13m, escapes two-year jail

    Dr Doyin Okupe, a former Senior Special Assistant to ex-President Goodluck Jonathan, was on Monday found guilty of receiving over N200m cash from a former National Security Adviser, Col. Sambo Dasuki (retd).

    He was therefore sentenced to two years imprisonment by Justice Ijeoma Ojukwu of a Federal High Court in Abuja with an option of N500, 000 fine on each of the 26 count charges for which he was found guilty.

    Delivering her judgment, Justice Ojukwu held that Okupe, who is the first defendant in the suit filed by the Economic and Financial Crimes Commission violated the Money Laundering Act.

    She said he had up to 4.30 pm to pay the fine option totalling N13m on all the charges he was found guilty of or be sent to the Kuje Correctional Centre.

    Justice Ojukwu, in sentencing Okupe, considered the pleadings for leniency from the convict’s wife, Omolola, and his son, Adesunkanmi.

    While stating that the Money Laundering Act provided that no individual or organisation shall receive any sum above N5m and N10m respectively without passing through a financial institution, the judge held that, “there is no evidence that the money passed through a financial institution” and that Okupe was not a financial institution, and that, even if the president was said to have authorised the funds, he did not say that the money must be paid in cash.

    Consequently, the court found Okupe guilty in counts 34, 35, 36 to 59 and sets him free from counts 1 to 33 because the prosecution failed to establish the charge of money laundering and criminal breach of trust and corruption against the NSA.

    In counts 34 to 59 upon which Okupe was convicted, he was accused of receiving various sums of money ranging from N10m on different occasions from 2012 to 2015 when he was Jonathan’s aide.

    The said sum, he said, was spent on running his office, payment of staff members and image laundering of the former President and his administration. But, the court, however, held that receiving such amounts in cash violated the Money Laundering Act.

    Shortly after his conviction, Okupe’s counsel, Francis Oronsaye, pleaded with the court to temper justice with mercy because the defendant was a first-time offender, a family man who is also advanced in age and having health challenges that he is currently treating in Nigeria and outside the country.

    Fine paid

    The reporter however gathered that Okupe succeeded in paying his fine before the deadline and was allowed to go.

    A source said, “Okupe has paid; they returned with the bank papers around 4.25pm. The court processed it, and everybody signed, including the EFCC lawyer.”

    Shortly after his release, Okupe tweeted, “God is not man. The enemies have tried in so many ways but kept on failing. Victory is of God.”

    Labour Party speaks

    Meanwhile, the leadership of the Labour Party on Monday said it would first obtain a copy of the judgment of the court that convicted Okupe, who is the Director-General of Obi-Datti Presidential Campaign Council and study it before taking a position on the matter.

    The spokesman of the campaign council, Yunusa Tanko, disclosed this in an interview with The reporter shortly after Okupe was convicted.

  • Money Laundering: Maina denied application to re-open defence

    The Federal High Court sitting in Abuja, on Friday, fixed November 8 to deliver judgement in the money laundering charge the Economic and Financial Crimes Commission, EFCC, preferred against the former Chairman of the defunct Pension Reform Task Team, PRTT, Mr. Abdulrasheed Maina.

    Trial Justice Okon Abang okayed the matter for judgement, after he dismissed an application the Defendant filed to be allowed to re-open his defence to the 12-count charge the anti-graft agency entered against him and his firm, Common Input Property and Investment Limited.

     

    EFCC had in the charge marked FHC/ABJ/CR/256/2019, alleged that the former pension reform bos used a bank account that was operated by his firm and laundered funds to the tune of about N2billion, part of which he used to acquire landed properties in Abuja.

    It told the court that the 1st Defendant (Maina) used fictitious names to open and operate various bank accounts, as well as recruited his relatives that were bankers to operate fake bank accounts through which illicit funds were channelled.

    The Prosecution maintained that the Defendants committed criminal offences punishable under sections 11(2) (a), 15(3), and 16(2) (c) of the Money Laundering Prohibition Act, and also acted in breach of the Advance Fee Fraud Act.

    The Defendants, who were arraigned on October 25, 2019, pleaded not guilty to the charge.

    Meanwhile, midway into the trial, Maina jumped bail and escaped from the country.

    Though the court okayed his trial in absentia and issued a warrant of arrest against him, Maina, was subsequently re-arrested in Niger Republic and returned back to the country on December 4, 2020.

    EFCC had earlier closed its case after it called a total of nine witnesses, even as the court ordered Maina to open his defence to the charge.

    Following Maina’s failure to produce his second witness on July 16, trial Justice Abang closed his defence.

    However, at the resumed proceedings on Friday, Maina, through his lawyer, Anayo Adibe, applied for the court to set-aside the order of foreclosure and allow him to re-open his defence.

    In the application he predicated on section 36(4) and (6) of the 1999 Constitution, as amended, Maina insisted that he was not served with hearing notice on the day his defence was closed.

    He prayed the court to in the interest of justice, allow him to produce more witnesses in defence of the charge against him.

    While refusing the application, Justice Abang noted that evidence before the court proved that both Maina and his lawyer were duly served with the hearing notice.

    He held that Maina’s application was an abuse of court process, stressing that it amounts to asking the trial court to sit on appeal over its earlier decision.

    “The court is functus officio and lacks the jurisdiction to review its decision.

    “The Defendant was offered opportunity to be heard, but he failed to avail himself of the opportunity.

    “The only legal option available to the Defendant is to go to the Court of Appeal.

    “The application is an abuse of court process and it is accordingly dismissed”, Justice Abang held.

    The court further rejected plea by Maina’s lawyer for an adjournment, even as it gave EFCC the nod to adopt its final brief of argument.

    Justice Abang subsequently adjourned the matter for judgement.

    Maina had ealier applied for the court to compel 10 persons, among whom included human rights lawyer, Mr. Femi Falana, SAN, to appear as his witnesses in the matter.

    Others he urged the court to summon as witnesses were the Attorney-General of the Federation and Minister of Justice, Mr. Abubakar Malami, SAN, the erstwhile Acting Chairman of the Economic and Financial Crimes Commission, EFCC, Mr. Ibrahim Magu and the Governor of the Central Bank of Nigeria, CBN, Mr. Godwin Emiefele, to appear as witnesses.

    Maina had insisted that evidence of the subpoenaed witnesses would be crucial to his defence of the charge.

    Others he also persuaded the court to compel to appear and testify in the matter, included M. Mustapha, Hassan Salihu, Mohammed Wakil, G.T Idris, Kenneth Amabem, Ibrahim Kaigama and the Director of Compliance at the CBN.

    It will be recalled that the court had after Maina jumped bail, remanded his surety, Senator Ali Ndume, in prison custody.

    The court initially held that Ndume who is representing Borno South should either produce Maina for the continuation of his trial, or forfeit his N500m bail bond.

    Alternatively, it directed the sale of Ndume’s property situated at Asokoro in Abuja to raise the N500m it said should be paid into the Federation Account.

    Meantime, after he regained his freedom on November 27, 2020, Ndume applied to withdraw from the case, a request that was rejected by the court.

    The trial court had in a judgement on Thursday, convicted and sentenced Maina’s son, Faisal, to 14 years imprisonment for money laundering.

    Source: www.vanguardngr.com

  • EFCC: Minister launders $37m through real estate deal

    THE Chairman of the Economic and Financial Crimes Commission, Abdulrasheed Bawa, has described the real estate sector as one with grand scale corruption in the country.

     

    The EFCC boss added that about 90 to 100 percent of resources are being laundered through the sector.

     

    Bawa stated this while featuring on Sunrise Daily, a current affairs programme, on Channels Television on Tuesday.

     

    He said the commission investigated a female minister, who he said, bought $37.5m property from a bank and deposited $20m cash.

     

    Bawa, who is marking his 100 days in office, did not however disclose the identity of the suspect or whether she is a current or former minister.

     

    He said, “One of the problems we have in the country is the real estate. Ninety to 100 per cent of the resources are being laundered through the real estate. Of course, they are being regulated but they are not enough in terms of how they give their returns to the Special Control Unit.

     

    “We investigated a matter in which a bank MD marketed a property to a minister and agreed to purchase it at $37.5m. The bank then sent a vehicle to her house to evacuate $20m from her house in the first instance.

     

    “The bank succeeded to put it in their system and paid the developer and then a lawyer set up a special purpose vehicle where the title documents were transferred into and of course, he is posing as the owner of the house.

     

    “Without the help of the banker, the minister couldn’t have imagined collecting $20m from anyone with opportunity from the real sector; she could not have thought of where to launder the proceeds of crime.”

     

     

     

    Source: www.theadvocatengr.com