Financial crimes on the other hand are those committed not only with the intention of getting financial benefit but they are targeted directly on funds and financial instruments. These include advance fee fraud, currency trafficking and counterfeiting, money laundering which are the commonest financial and economic crimes in Nigeria.
The Nigerian situation has featured prominently in many studies on economic and financial crimes. Nigeria has been rated among other countries like the US and UK by the International Narcotics Control Strategy Report (INCSR) on money laundering and financial crimes of March 2007 as a jurisdiction of primary concern. The report, which was reached from assessment of money laundering situations in about 200 jurisdictions, involved six main indices, which include:
- Assessment of the significance of financial transactions in the country’s financial institutions that envolve in the country’s financial institutions that involve proceeds of serious crime.
- Steps taken or not taken to address financial crime and money laundering.
- Each jurisdiction’s vulnerability to money laundering.
- The conformance of its laws and policies to international standard.
- The effectiveness with which the government has acted.
- The government’s political will to take needed actions.
The above parameter resulted to three differential categories of money laundering countries i.e.
a. Jurisdictions of Primary Concern: This category is made up of fifty-nine (59) countries of which countries like Nigeria, China, France, Germany, Spain, Australia, India, Switzerland, Italy, United Arab Emirate, United Kingdom and United States feature prominently. The category includes all countries and jurisdictions whose financial institutions engage in transactions involving significant amount of proceeds from all serious crimes.
“Thus, the focus of analysis in considering whether a country or jurisdiction should be included in this category is on the significance of the amount of proceeds laundered, not of the anti-money laundering measures taken. This is a different approach taken than that of the Financial Action Task Force (FATF) Non-Cooperative Countries and Territories (NCCT) exercise, which focuses on a jurisdiction’s compliance with stated criteria regarding its illegal and regulatory framework, international co-operation and resource allocation”. 4
b. Jurisdiction of Concern: Countries whose money laundering problems are not acute come under this classification. They are made up of 65 countries according to International Narcotics Control Strategy Report volume 2 on Money Laundering and Financial Crimes March 2007 (INCSR).
c. Other Jurisdictions Monitored: This is the third category. It is made up of jurisdictions that do not pose an immediate concern. This group is made up of seventy-eight (78) jurisdictions. continue ....next page
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