Terrorism Financing FAQs

 

Q. What is the difference between money laundering and terrorist financing?

A. While to a large extent the techniques and methods used in money laundering and terrorist financing are similar, there are crucial differences. In money laundering the initial funds are always the product of some illegal act and the launder seeks to legitimise these. However, with terrorist financing the source of funds may be legal as well as illegal and the financiers
seeks to convert these into support for an illegal act.

  Q. What agency is responsible for fighting terrorism in Nigeria?

A. While to a large extent the techniques and methods used in money laundering and terrorist financing are similar, there are crucial differences. In money laundering the initial funds are always the product of some illegal act and the launder seeks to legitimise these. However, with terrorist financing the source of funds may be legal as well as illegal and the financiers seeks to convert these into support for an illegal act.

Q How do we report suspicious activity relating to terrorism?

A In Nigeria several agencies play a role in protecting our country from attack by terrorists. The Department of State Services (aka SSS) has responsibility for investigating and preventing acts of terror against the nation and the population, while the NFIU is responsible for detecting and combating terrorist financing.
Beyond these the Police as the prime law enforcement organisation also play a crucial role, and
a new special unit against terrorism is currently being set up, with over 300 officers currently undergoing
training. Many other agencies have their core competencies and the combination of these ensure
the safety of our country.

Q What is the legal framework against terrorist financing in Nigeria?

A A suspicious transaction reporting regime for terrorism related activities is in operation in Nigeria.
The CBN has through circular, BSD-13-2006, obligated all financial institutions in Nigeria to report
suspicious transactions related to the financing of terrorism to the NFIU. A draft anti-terrorism bill is being prepared which will put Nigeria in line with international standards against terrorism financing. However, section 15 of the Economic and Financial Crimes (Establishment) Act, 2004, has criminalized terrorist financing.

Q Where can I get more information?

A There are a wealth of information available on the internet. The websites of the United Nations Counter Terrorism Committee is a good place to start. The website of the Financial Action Task Force contains links to the 9 Special Recommendations on Countering the Financing of Terrorism, which is the international standard. The websites of the NFIU, EFCC and CBN also contain useful information

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