NIGERIA: REACTION TO FATF THREAT OF SANCTIONS

C O N F I D E N T I A L ABUJA 002875

SIPDIS


DEPT FOR INL AND AF
.
TREASURY FOR OFFICE OF ENFORCEMENT - SHAUN LONERGAN


E.O. 12958: DECL: 10/18/2017
TAGS: EFIN KCRM PREL PGOV NI
SUBJECT: NIGERIA: REACTION TO FATF THREAT OF SANCTIONS

1.(C) SUMMARY: Ambassador Jeter called on Senate President
Anyim Pius Anyim October 16 to inform him about the gravity
of the Financial Action Task Force (FATF) decision on
counter-measures due to Nigeria's failure to adopt anti-money
laundering reforms. The Ambassador told Anyim the FATF
decision gave Nigeria a reprieve until December 15, which
placed the onus on the National Assembly to enact needed
legislation by then. RNLEO accompanied. END SUMMARY.


2.(C) The Ambassador briefed the Senate President on the
recent history of FATF reviews of Nigeria's performance in
controlling money laundering, emphasizing the lack of
communication during the months between the late Attorney
General's December 2001 meeting in Rome with the FATF's
Africa and Middle East Review Group (AMERG) and August 2002.
The FATF has focused on the lack of progress in passing
legislative amendments expanding the scope of Nigeria's
existing Money Laundering law (which only criminalizes drug
money laundering) and tightening controls over financial
institutions other than banks (e.g. stock brokerage firms and
currency exchange bureaus),Jeter noted. The FATF again
reviewed Nigeria's progress during its plenary meeting in
Paris October 9-11 and decided Nigeria had not taken the
steps recommended over the past two years. The body then
agreed to impose counter-measures against Nigeria.
Recognizing the good-faith efforts made during the last two
months, however, the FATF gave Nigeria an extra 60 days to
pass the requisite legislation; barring such progress, the
counter-measures would take effect December 15, 2002, the
Ambassador emphasized.


3.(C) The Senate President agreed with the Ambassador's
assessment that counter-measures would hurt Nigeria and that
averting this predicament required non-partisan cooperation.
Anyim promised to consult with the relevant Senate Chairmen
and lower House leadership to put the legislation on a fast
track in the Senate and House.


4.(C) Comment: Anyim said the right things and we hope he
means them. However, he is not much of a statesman and
sometimes finds it difficult to see beyond his own immediate
political interests. However, the case for legislative
action is clear-cut and we believe Anyim recognized this.
Yet he also is one of the organizers behind the impeachment
drive against the President. We Before he moves on the money
laundering legislation, he will contemplate how he can use it
as leverage against Obasanjo, or prevent the Executive from
somehow using it against him. We believe he will act quickly
to pass the legislation if the Executive is successful in
convincing him that the National Assembly will be stuck with
the blame for FATF sanctions and, conversely, that Anyim will
receive credit for the legislation's passage.


5.(C) The Principal Secretary to the President and the
Attorney General are launching a full court press to this
goal. Press coverage of the FATF decision to date has been
minimal, due to the International Court of Justice's October
10 decision on the Bakassi Peninsula and the ongoing
political struggle between the executive and legislature.


JETER