Cash Less Policy to Tackle Money Laundering, Says Osibodu

By Obinna Chima
copied from: http://www.thisdaylive.com

The Group Managing Director /Chief Executive of Union Bank of Nigeria Plc, Mrs. Funke Osibodu has said that the cash-less  policy initiative that had been introduced in the system would go a long way to reduce activities of money laundering in the system.

Therefore,  Osibodu advised the Committee of Chief Compliance Officers of Banks in Nigeria (CCCOBIN) to adhere to international standards as they grapple with new challenges of in the global market, even as she listed the new cash-less policy, anti- money laundering and countering financing terrorism as some of the challenges that the officer had to grapple with.

According to a statement from the bank, the Union Bank boss made the call in Lagos while addressing members of the committee at a general meeting hosted by the bank.
Osibodu said that the negative perception and threat to blacklist Nigeria in the global financial market stemmed from non-adherence to anti-money laundering and countering financing terrorism laws, saying that for the country to change such perception, the compliance function in different banks needed to be enhanced and made more stringent even as they participate in the international AML/CFT programmes so as to appreciate the country’s stance against money laundering.

Commenting further on the cash-less policy, she canvassed for shared experience and robust discussions amongst all stakeholders would help to tackle issues emerging from the new policy; pointing out that tremendous progress had been made in the electronic  banking products, mobile banking and prepaid cards.

She argued that the new cash policy would bring both positive and negative effect on money laundering, financing terrorism and other forms of financial crimes, saying that the positive impact would far outweigh the negatives.

According to her, the cash-less policy had come to change the face and mode of operations in Nigeria.

She said given that legitimate businesses were also used by the terrorist groups and their supporters to either raise funds in support of logistics and operational requirements to cover some activities of the groups or as a front for money laundering, the committee should develop the sensitivity and tools that could be in focusing on these areas.