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AN ASSESSMENT OF THE ROLE OF THE SPECIAL CONTROL UNIT AGAINST MONEY LAUNDERING (SCUML) IN COUNTERING MONEY LAUNDERING AND TERRORISM FINANCING IN NIGERIA ABIODUN ADEBANJO (DOP)

Abiodun Adebanjo
AN ASSESSMENT OF THE ROLE OF THE SPECIAL CONTROL UNIT AGAINST MONEY LAUNDERING (SCUML) IN COUNTERING MONEY LAUNDERING AND TERRORISM FINANCING IN NIGERIA ABIODUN ADEBANJO (DOP)
DOI Crossref DOI 10.37547/tajpslc/Volume06Issue09-08
tajpslc 2024
VOL. 6 / NO. 09 SEPTEMBER
FULL TEXT PP. 85-104
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VOLUME 6
ISSUE 09
YEAR 2024
PAGES 85-104
RESEARCH OVERVIEW

Abstract

The work is a summative assessment of the impact of Special Control Unit against Money Laundering (SCUML) in the ecosystem of Nigeria’s Anti-Money Laundering and Countering of Terrorism Financing (AML/CTF) framework. This work examined the mandate of the SCUML and its role within Nigeria’s AML/CTF regime. The work evaluated the role and contribution of the Unit to the fight against Money Laundering (ML) and Terrorism Financing (TF) in Nigeria. The work examined the Unit as to whether it has the capacity in terms of structure and resources to deliver on its mandate. The work began by looking at the reason for the establishment of SCUML in the first place and how it has fared in this regards. The study utilized data from records available in the EFCC Annual Reports on the activities of the Unit from 205 – 2022. Document analysis of materials available on the Unit was deployed in making deductions and inference in order to draw the conclusion from the study. Key findings of the work provide that SCUML has made several strides especially in the on having DNFBPs in Nigeria comply with registering with it before they can operate corporate accounts. There are still a number of issues that needs to be addressed. From the records of registration of DNFBPs it is evidently clear that the Unit has achieved a major milestone in the quest to have a register of DNFBPs in Nigeria. This is a first step in FATF Recommendation 23 that requires Competent Authorities to have a National Register of DNFBPs. In this regards the Unit has done creditably well but bringing DNFBPs into full compliance of Nigeria’s AML/CFT/CPF required a lot more. Some of the challenges militating against the Unit playing its role includes among other: many Self Regulating Organisations (SROs) do not comply with the Unit as they should. The Unit is supposed to provide information to all law enforcement agencies as the NFIU does. This is not currently the case. The Unit is a Department under the EFCC, as such virtually all of the information it gathers is in the fulfilment of the mandate of the EFCC. The Unit’s mandate just like the NFIU is regulatory. How a regulatory Unit can function effective in a law enforcement set is a challenge that must be addressed. It is clear from the number of staff and coverage of SCUML that the Unit there is a need for the Unit to have office in all the states in Nigeria if it is to play more effective role in regulating the activities of DNFBPs which are scatter across Nigeria.

RESEARCH TOPICS

Keywords

Money Laundering Economic and Fiancial Crimes Commission (EFCC) Special Control Unit against Money Laundering (SCUML)

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