TERRORISM FINANCE: COUNTERING TERRORIST ABUSE OF THE

UNCLAS ABUJA 000676 SIPDIS TREASURY TFFC FOR KLEAHY, MROSEN, ALARSON STATE FOR EEB/ESC/TFS LRECHT, NEA CARVIS, INL/AAE E.O. 12958: N/A TAGS: SNAR KTFN EFIN ETTC PHUM EAID PTER NI IZ SUBJECT: TERRORISM FINANCE: COUNTERING TERRORIST ABUSE OF THE CHARITABLE SECTOR. REF: STATE 005834 ¶1. Post, in response to reftel, submitted a Non- Paper document to the relevant offices within the host government, Ministry of Foreign Affairs, Nigeria Financial Intelligence Unit (NFIU),the Special Control Unit against Money Laundering (SCUML) and relevant National Assembly Senate and House of Representative Committees overseeing these agencies. ¶2. Host government responses from the Nigeria Financial Intelligence Unit (NFIU) and the Special Control Unit against Money Laundering (SCUML) indicate that there are efforts by the Nigerian Government to put in place legislative and institutional frameworks to regulate, monitor and supervise entities considered vulnerable to manipulation for Money Laundering and Terrorism Financing. The Nigerian Financial Intelligence Unit (NFIU),established in 2005, derives its powers from the Money Laundering (Prohibition) Act of 2004 and the Economic and Financial Crimes Commission Act (EFCC) of ¶2004. Housed within the EFCC, it is the central agency for the collection, analysis and dissemination of information on money laundering and terrorist financing. The Money Laundering Act of 2004 also gives powers to the Minister of Commerce and Industry to issue operating guidelines to Designated Non-Financial Institutions (DNFI's) including Non-Profit Organizations (NPO). NFIU and SCUML both have the mandate to conduct regular Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) sensitization and inspection of financial institutions and businesses and professions so designated. While NFIU has made major in roads in getting financial institutions to comply with reporting requirements, SCUML admits it still has a step learning curve in collaboration with other regulators to effectively monitor and control the largely amorphous DNFI sectors particularly NPOs. ¶3. NFIU and SCUML welcomed the encouragement of the USG as contained in the Non-Paper and welcomed any assistance from the USG. ¶4. NFIU/SCUML are working in line with international best practices to implement Nigeria's AML/CFT regime. To achieve this, NFIU/SCUML works with the Banks and Other agencies to track financial transactions and DNFI's Advisory Council of Self Regulatory Organizations respectively which makes input to work out Nigeria's AML/CFT regime. Both agencies are adhering to the FATF Special Recommendation VIII, by sensitizing all stakeholders through the Inter-Ministerial Committee to prevent terrorist organizations from abusing Non-Profit Organizations (NPO's) to perpetrate their "evil" crimes. ¶5. NFIU/SCUML indicated that they look forward to further assistance from USG on fighting terrorism financing in Nigeria. SANDERS