GIABA engages BDC operators on fight against money laundering

By Olivia Nnorom

The Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) has charged  Foreign Exchange Bureaus/Bureau De Change (BDC) operators on effective implementation of anti money laundering (AML) preventive measures in the currency exchange sector in the fight against money laundering and terrorism financing in Nigeria.

GIABA gave the recommendation at a national workshop on enhancing Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) Compliance by Foreign Exchange Bureaus.

Edwin Harris, director general, GIABA, who spoke at the opening ceremony acknowledged that as a major provider of financial services, the foreign exchange bureaus constitute one of the drivers of economic growth in Nigeria and West Africa as a whole. However, he said that observations showed that the sector, which is the fastest growing number of institutions in the West African financial services industry in recent years, is the most vulnerable to money laundering.

Harris cited a Mutual evaluation report of Nigeria which showed that the country has 4,798 registered forex dealers with an asset base of $469.7 as well as the 2017 National Risk Assessment (NRA) of the country which identified this sector as the most vulnerable to money laundering.

He also pointed out that NRA identified several vulnerabilities in relation to the foreign exchange bureaus/BDCs, including limited awareness of ML/TF risks, poor implementation of AML/CFT preventive measures and weak supervision / monitoring for AML/CFT compliance.

The GIABA DG therefore called for cooperation and collaboration from stakeholders to improve compliance of the currency exchange sector with acceptable international AML/ CFT preventive measures. He also assured that the inter-governmental action group will continue to provide technical support to its member states, including Nigeria to protect their national economies and financial systems against ML/TF and PF.

Harris explained that the primary objective of the workshop was to provide a platform for participants to share experiences and foster cooperation and collaboration for effective implementation of AML/CFT preventive measures in the currency exchange sector.

Aminu Gwadabe, national president of the Association of Bureaux de Change Operators in Nigeria (ABCON), in a goodwill message, said the body is not unaware of the increasing threat posed by money laundering and terrorism financing in the system.

Gwadabe urged all stakeholders to work together towards addressing this challenge, by ensuring that all operations are transparent, accountable, and compliant with international best practices on AML/CFT.

He also advised participants to take full advantage of the platform to deepen knowledge and understanding of AML/CFT issues, and work together towards a safer and more secure financial system for the country and the region at large.