Senate considers bill to disrupt illicit funding for criminals, terrorists in Nigeria
(Nigeria) The Senate on Tuesday considered a bill that would disrupt
the financial flow and funding of criminal enterprise and terrorist financing
in Nigeria through the seizure of assets and monies marked as proceeds of
crime.
Titled: Proceeds of Crime Bill, 2021, the piece of
legislation is sponsored by the Senate Leader, Yahaya Abdullahi (APC, Kebbi
North).
Leading debate on the bill, Senator Abdullahi said it seeks
to provide for a comprehensive legal and institutional framework for the
recovery and management of proceeds of crime or benefits derived from unlawful
activities.
He explained that its passage and assent into law would
harmonize and consolidate the legal provisions on the recovery of proceeds of
crime in Nigeria.
According to the lawmaker, Nigeria had severally attempted
to put in place an appropriate Proceeds of Crime legislation since 2007.
“Efforts to develop a comprehensive bill have been impeded
by agency rivalry since 2011.
“The effort to sign the Proceeds of Crime Bill into law in
2019 was delayed as a result of complaints by agencies that claimed that the
Bill is intended to take away their powers,” the Senate Leader said.
He noted that, “during the evaluation of Nigeria in 2007 by
the International Financial Action Task Force, FATF, they observed in their
report that the legal framework for the recovery and management of stolen
assets in Nigeria is inadequate and do not comply with international
standards.”
Abdullahi lamented that due to lack of centrally managed
database on recovered assets, effort to track and maintain the actual number of
the seized assets, their location and their value is made difficult.
“There have been reported and verifiable instances over the
years that showed that some recovered assets were being misused, stolen or
lost.
“Further investigations have shown that some of the agencies
opened multiple accounts for the payment of forfeited assets without keeping
proper records.
“It was against this background that Mr President
constituted the Presidential Audit Committee on Recovery of Assets (PACRA) in
2017.
“Not surprisingly,
the committee’s findings re-iterated the need for comprehensive and more
innovative approach in the management of recovered assets in a transparent and
accountable manner so that these assets would become a source of revenue for
the country as is the case in many developing and developed countries of the world,”
he said.
The lawmaker recalled that sequel to the submission of the
report of PACRA in 2018, the President directed that measures be put in place
pending the passing of the Proceeds of Crime Bill into law.
Such measures include the establishment of an Asset Recovery
and Management Unit in the Federal Ministry of Justice (ARMU/ FMOJ); the
opening of a central asset recovery (final forfeiture) account and a central
(interim forfeiture) account in the Central Bank of Nigeria; and Use of
recovered assets/funds as a source of revenue in the Appropriation Act of 2018
and in subsequent Appropriation Acts.
He explained further that the Proceed of Crime legislation
is considered as one of the vital conditions to secure Nigeria’s full
membership of the Financial Action Task Force, FATF.
According to him, “Nigeria’s application has remained
elusive as the agencies argue to retain their powers at the expense of national
interest.”
He stressed that the bill has taken into account the issues
raised by the LEAs in relation to their continuing engagement in civil recovery
without compromising the international applicable standards in United Nations
Conventions.
Abdullahi said, when passed by the National Assembly and
assented into law by the President, the bill would provide for the seizure of
assets from criminal enterprises, including terrorist organizations, and
bandits who undertake their operations with funding from individuals within or
outside the country.
“A strong asset recovery measure can also disrupt the
activities of these criminal organizations and reduce the level of insecurity
in the country,” he said.
Contributing, the Minority Leader, Senator Enyinnaya
Abaribe, commended the President Muhammadu Buhari-led administration for the
move to have the Proceeds of Crime bill introduced and passed by the National
Assembly.
“It is not very unusual to see me get up here and commend
this government for bringing an executive bill that is in the interest of the
country.
“But this is one of those bills that I want to commend the
APC government for taking a step in the right direction, so that we can deal
comprehensively with the matter of corruption in Nigeria,” the Minority Leader
said.
Senator Bala Ibn Na’Allah, on his part said having such an
innovative law that would discourage criminals from engaging in crime for the
purpose of financial profits.
The bill after scaling second reading, was referred by the
President of the Senate, Ahmad Lawan, to the Committee on a Judiciary, Human
Rights and Legal Matters, to report back in two weeks.
Meanwhile, two other bills scaled second reading during
plenary on Tuesday.
They are: The National Payment System Bill; and A bill for
an Act to provide for the establishment of the Federal University of
Agriculture Mpu, Enugu State.
Both bills are sponsored by Senators Sadiq Usman (APC, Kwara
North); and Ike Ekweremadu (PDP, Enugu West).
The bills after
consideration were referred by the Senate President to the Committees on
Banking, Finance and other Financial Institutions; and Tertiary Institutions
and TETFUND for further legislative work.
The Committee were given two weeks to report back to the upper chamber.
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