The President/Chairman of Council, Chartered Institute of Bankers of Nigeria, Ken Opara, has said trade-based money laundering poses a significant threat to the integrity of the global financial system and has far-reaching implications for regulators and operators alike.
He spoke at the CIBN breakfast session themed, ‘Countering trade-based money laundering: Implications for regulators and operators’.
He said, “According to a report published by the Financial Action Task Force in 2022, trade-based money laundering accounts for a substantial portion of illicit financial flows worldwide. It is estimated that illicit proceeds worth $1.4tn to $2.3tn are laundered through trade-based schemes every year, significantly impacting economies and undermining legitimate trade activities.
“This report also highlights that trade-based money laundering poses unique challenges for regulators and operators. The complexity of global supply chains, the sheer volume of trade transactions, and the use of innovative techniques by money launderers necessitate a comprehensive and coordinated response from all stakeholders.
“It is essential to strengthen the capacity of regulators and operators to detect and prevent these illicit activities, safeguarding the financial system from exploitation.”
He noted that in light of recent developments in the global financial landscape, it was imperative to be vigilant and proactive in combating money laundering.
In his address, the keynote speaker, Norman Wokoma, said trade-based money laundering involved the exploitation of the international trade system, for the purpose of transferring value and obscuring the true origin of illicit wealth.
He said, “Countering trade-based money laundering in Nigeria is critical to promoting trade transparency which builds trust, confidence, and predictability in global supply chains, the result is a national robust trade system that can facilitate growth.
“The Central Bank of Nigeria plays a significant role in the management of the country’s international trade and ensuring compliance, especially for banks and other financial institutions.”
Meanwhile, the Chief Risk and Compliance Officer Nigerian Export-Import Bank, Umara Gubio, noted that the scope of trade-based money laundering had continued to evolve as criminals adapted to new technologies, exploited vulnerabilities in trade systems, and found innovative ways to launder illicit funds.
