BDCs Canvass NFIU’s Autonomy

Bureau De Change OperatorBureau De Change Operator
  • BDCs Canvass NFIU’s Autonomy

Bureau De Change operators under the aegis of the Association of Bureaux De Change Operators of Nigeria say the body is worried over the continued delay in granting operational autonomy to the Nigerian Financial Intelligence Unit.

The ABCON President, Alhaji Aminu Gwadabe, said the association, which comprises over 3500 Central Bank of Nigeria-licensed BDC operators, believed the action could derail progress in the nation’s financial system.

He said that despite the looming threat of Nigeria’s expulsion from the Egmont Group, a 153-nation network of national financial intelligence units, the Senate and House Committees on Anti-Corruption had disagreed over the domiciliation of the NFIU and needed to grant the body full autonomy.

The Recommendation 29 of the Financial Action Task Force permits the domiciliation of the financial intelligence unit in any larger organisation as long as it has its operational and financial independence.

The bill to grant financial and operational autonomy to the unit, which has been passed by both legislative chambers, is before the conference committee of the National Assembly, which is required to harmonise the discrepancies in both versions of the legislation.

In a statement on Wednesday, Gwadabe was quoted as saying that the delay should be avoided as it portends dangers for the entire financial market and could lead to Nigeria’s suspension by the Egmont Group.

According to Gwadabe, should such suspension occur, Visa, MasterCard and other payment cards issued by Nigerian financial institutions would be rejected by global financial institutions.

He added that such suspension could also adversely affect Nigeria’s credit rating by global financial markets.

Another adverse implications, the ABCON boss said, was that it would derail the anti-corruption war as recovery of looted funds abroad and other follow up by anti-corruption agencies would be hindered, making cooperation by sister global corruption agencies difficult.

He added that it could also affect the international ratings of Nigerian financial institutions, restricting their access to some big-ticket international transactions.

Nigeria will also no longer be able to benefit from financial intelligence shared by the other member countries, including the United States and the United Kingdom.

Gwadabe said that ABCON has zero tolerance for poor Anti-Money Laundering/Combating the Financing of Terrorism compliance, and therefore wanted the relevant parties to unite to save Nigeria’s financial institutions from unintended vulnerabilities, threats, risks and losses that would follow suspension by Egmont Group.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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