Nigeria's President Olusegun Obasanjo has written to the National Assembly, urging the Nigerian parliament to push through anti money-laundering legislation. If Nigeria fails to introduce legislation to curb dirty money flows, it faces a real possibility of isolation in international banking circles.

Nigeria has apparently been pushed into action by a 15 December 2002 deadline issued by the Financial Action Task Force (FATF) for the authorities to make significant legislative changes or face sanctions.

Awaiting ratification

The Nigerian president sent three money laundry-related bills to the National Assembly for consideration earlier this month. The bills include the Money Laundering and Other Financial Crimes Bill and a bill seeking the establishment of the Anti-Terrorism and Financial Crimes Commission. The three money-laundering bills have passed their first reading but have yet to be ratified.

According to Obasanjo, unless urgent steps are taken to pass the bills, Nigerian banks risk being blacklisted from the international financial system. This he says would include the rejection of letters of credit from Nigeria.

Blacklist

FATF, the inter-governmental body that aims to combat money laundering at national and international levels, has been particularly critical of Nigeria and Ukraine, which also faces a blacklisting if it fails to introduce appropriate legislation ahead of the 15 December 2002 deadline. The first blacklisted country against which FATF sanctions were imposed was Nauru in December 2001.

In addition to the three states named above, other countries defined by FATF as Non Cooperative Countries and Territories (NCCTs) are Myanmar, Philippines, St. Vincent and the Grenadines, Cook Islands, Egypt, Grenada, Guatemala and Indonesia.

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