FG Unveils Dual Strategy to Combat Terrorism Financing
By Patience Ikpeme
The federal government of Nigeria has introduced a dual strategy aimed at tackling the pervasive issue of terrorism financing.
Speaking at a three-day conference on anti-money laundering organized by the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) in Abuja, the Minister for Interior, Olubunmi Tunji-Ojo, outlined two key initiatives: individual and corporate identity management, and an integrity and document authentication system.
Tunji-Ojo emphasized the critical role that poverty plays in driving terrorism, noting that Nigeria is nearing the completion of these two measures, which will help curb terrorism financing in the country. He explained that identity management will focus on ensuring that every individual and corporate entity in Nigeria is properly documented, and any discrepancies in identity information will be addressed comprehensively.
“Individual and corporate identity management is key,” the minister stated. “The identity of everyone in Nigeria must be visible, and identity fraud must be eradicated. It should be impossible for a person to open multiple accounts under different names or hold different insurance policies with conflicting identities. The financial sector, including the insurance industry and capital markets, must be rid of such discrepancies. We need a system where changing your name anywhere requires you to change it everywhere. Furthermore, we need detailed protocols and accurate information on corporate identities, countries, companies, and agents.”
Tunji-Ojo further called on relevant agencies to enhance their intelligence-gathering capabilities concerning terrorism financing, stressing that terrorism is not only a physical threat but also an economic one. “Terrorism is economic warfare,” he noted, linking poverty to terrorism by highlighting that many of the poorest countries globally face high levels of terrorist activity.
The Director General of GIABA, Edwin Harris Jr., also spoke at the conference, emphasizing the need to deprive terrorists of their financial resources. According to Harris, terrorists rely on funds to carry out their activities, which include buying weapons, building bombs, organizing logistics, and recruiting and paying fighters.
“By taking money away from terrorists, we prevent attacks and save lives. Terrorists need funds to function, and cutting off their access to these resources is crucial. GIABA, along with other international institutions, is committed to implementing the Financial Action Task Force (FATF) recommendations, which aim to stop terrorism financing.”
Harris highlighted some of the challenges in tracking terrorism financing, such as the abuse of informal banking systems like Hawala, where funds are transferred based on trust, without leaving any traceable record. These networks are commonly used by terrorists to move money across borders undetected.
In addition, Harris pointed out that terrorist organizations often hide behind fake charities or exploit humanitarian efforts following major disasters to raise funds. They also misuse donations from faith-based organizations, claiming the funds are intended for educational purposes or disaster relief, making it difficult for authorities to detect and disrupt these operations.
To address these challenges, Harris called on countries to criminalize the financing of terrorism and ensure that it is designated as a predicate offense for money laundering. He urged countries to freeze and confiscate assets tied to terrorist organizations without delay, as mandated by United Nations resolutions. Additionally, Harris stressed the importance of adopting legislative measures to allow competent authorities to seize property used in financing terrorism.
Harris also emphasized the importance of international cooperation, stating that countries must offer the highest level of mutual assistance in investigations, legal inquiries, and proceedings related to terrorism financing. He urged nations to avoid becoming safe havens for individuals involved in terrorism and to establish mechanisms for the swift exchange of information and legal cooperation.
In her opening remarks, Mrs. Hafsat Abubakar Bakari, Director of the Nigerian Financial Intelligence Unit (NFIU), underlined the importance of collaboration with international partners in combating terrorism financing. She urged participants to familiarize themselves with the methods terrorists use to finance their operations, noting that financial investigations are key to disrupting their activities.
“This workshop is timely and relevant as we sharpen our collective response to this menace,” Bakari said. “At the NFIU, we understand that to dismantle terrorist organizations, we must not only apprehend those who commit acts of terror but also trace and cut off the funds that fuel their activities. Financial investigations play a pivotal role in this process.”
Bakari explained that by analyzing patterns of transactions, identifying suspicious activities, and tracing funds across borders, authorities can uncover the sponsors and facilitators of terrorism. She reiterated that the NFIU is committed to working with international partners to strengthen the fight against terrorism financing.
The introduction of a dual strategy to combat terrorism financing in Nigeria marks a significant step in the government’s efforts to curb the financial resources that fuel terrorist activities. With individual and corporate identity management, alongside an integrity and document authentication system, Nigeria aims to eliminate discrepancies in financial dealings and ensure a more transparent system. Additionally, the collaboration between national and international bodies, including GIABA and NFIU, highlights the importance of global cooperation in fighting terrorism financing. Through concerted efforts, Nigeria hopes to cut off the financial lifeline of terrorist organizations and ensure greater security for its citizens.