Show Me the Money

10 Nuhu Ribadu
and cars, they were guilty of money laundering. This opened the
door to a new era in the fight against financial crimes by offering
a brand new tool to criminalize activities related to fraud and corruption.
Financial criminals could now be convicted for money laundering,
which—when proper financial reporting is in place—is
easier to investigate and prosecute successfully than corruption.
In addition, documented money flows are difficult to dispute,
and failure to establish a legitimate origin and ownership of these
funds is enough to make a case of laundering. In any case, the
EFCC was tasked to enforce the new money laundering law,
which was a better tool than the arcane provisions on corruption
contained in the Nigerian states’ criminal and penal codes.
The law prescribed sentences of two to three years for crimes
of money laundering. These sentences are less harsh than punishment
for corruption. But they put financial criminals out of circulation
for a few years, which may be enough to disrupt their activities
and networks, at least for a while. It also provided a strong
deterrent by signaling that financial crimes would no longer be
tolerated.
Financial reporting. Strict limits on informal cash payments—
up to 2 million naira (about $13,300) for businesses and half a
million naira (about $3,300) for individuals—were introduced to
channel financial transactions into the banking system. In addition,
any foreign transfer involving more than $10,000 now had
to be reported to the Central Bank of Nigeria. The new rules also
significantly expanded the reporting net by forcing financial institutions
including bureaus de change, but also businesses such as
casinos, jewelry and car dealers, accountants, and lawyers or tax
advisors to identify their customers, keep proper records, and report
large or suspicious transactions. Getting a grip on the financial
system made illegal monies more difficult to hide and helped
authorities follow the financial trail of corruption and fraud.