In recent years, the spate of terrorism, which the Advanced Learner?s Dictionary defines as the use of violent action or threats of violent action for political purposes, has not only grown in dimension, but constituted a distraction to the government of the day.
International terrorism and domestic terrorism are the two major types of terrorism which come in various forms. There is social terrorism, featuring criminal activities such as armed robbery, rape and so on. There is religious terrorism involving religious contentions that most times result in destruction of worship centres, and industrial terrorism that features strikes, industrial disputes and others. Political terrorism features political thuggery, bombing of public institutions and such like, which target the government of the day.
Although terrorism experts are of the opinion that the duty of deterring, detecting and disrupting terrorist activities is an all-stakeholder affair, exposing and dismantling the financing channels and sources of funding for this heinous crime is critical in the fight against terrorism.The Head, Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) Office, Nigeria, Timothy Melaye reportedly explained of recent that just as fishes need water to stay alive, terrorism thrives on funding. He stated that the continued security challenges faced by Nigeria through Boko Haram will continue until the government and other agencies, including international bodies are able to drain funding for terrorist activities.
President Goodluck Jonathan had stated at the interactive session of the World Economic Forum held in Davos, Switzerland in January 2013 that the attractive financial rewards gotten as ransom for hostage taking and drug trafficking was responsible for the increasing rate of terrorism in Africa.
Terrorist financing refers to the processing of funds to sponsor or facilitate terrorist activity?and it constitutes a major infrastructure for the thriving of terrorism.?A terrorist group creates and maintains an infrastructure to facilitate the development of sources of funding, to channel those funds to the providers of materials and or services to the organization, and, possibly, to launder the funds used in financing the terrorist activity or resulting from that same activity. They usually combine both lawful and unlawful funding sources, and most times, the agents involved do not know the illegitimate end of that income.
Terrorism funding takes various forms such as financial support?which comes in form of donations (of property or cash by individuals or organisations and charity donations through NGOs), community solicitation, state funding, and other fundraising initiatives.
Revenue generating activities?like diamond trading or real estate investment, consultancy, cash couriers, mass media outlets can also aid financing of terrorist activities. Most revenue generating activities that support terrorism financing are criminal activities like kidnapping for ransom or other purposes, drug trafficking, extortion from diaspora communities by government officials, funding of arms deal, money laundering, smuggling or fraud.
The terrorist financer most times disguises the illegal end of the funds, while making efforts to maximize revenues for the organization sponsored. Source of funds could also be disguised either because such funds have an illegal origin, or because the organization intends to preserve the continuity of the legitimate financing.
Apart from financial support and revenue generating activities, environmental and economic conditions of a geographical area could constitute an infrastructure for terrorist activities. Such conditions include high poverty level which makes young men and women vulnerable to enticement and recruitment by terrorist groups, porous borders, inefficient financial regulatory institutions, political instability and the absence of political will to fight terrorism.
?To begin with, it is crucial to note that dealing with economic and financial crimes depends largely on the political will and commitment of any government. A strong political will is a major precondition for the success of either investigation or prosecution of economic and financial crimes? said Dr. Abdullahi Y. Shehu, Director General?Inter-Governmental Action Group against Money Laundering in West Africa (GIABA).
The Permanent Secretary of Nigeria?s Ministry of Foreign Affairs, Ambassador Martins Uhomoibhi believes that the prevalence of cash economies, weak financial control, ineffective collaboration of national law enforcement agencies added to collaboration with major global financial centres have combined to intensify the challenge of deflating terrorism financing.
The Chairman of Economic and Financial Crimes Commission (EFCC) has stated that globally, bulk cash smuggling is usually associated with proceeds of crime, where illegitimately earned funds are processed outside the banking system. The commission?s Chairman, Ibrahim Lamorde recently at a press interview identified the Bureau De Change (BDCs) as major conduits for funding bulk currency movements, which obliterate the tracks of huge funds stolen from the treasury.?He therefore passionately pleaded with banks to be more circumspect, and to also, thoroughly document their forex sales to the BDCs, so as to facilitate investigations of corrupt practices.
The difference between official and black market exchange rates has continued to be between N5 and N10, a margin, which is still attractive enough to encourage underhand practices in the banks. According to a Nigeria-based economist, Mr. Henry Boyo, it is not safe for public sector dollars to be liberally sold to the BDCs, whose cash flows are traditionally derived from the itinerant tourist market.??The free access to public sector dollars made available to the BDCs by the Central Bank of Nigeria (CBN) is contributory to the motivation for money laundering and currency trafficking. These crimes are facilitators of terrorism financing.
The CBN therefore has a lot of work to do concerning the regulation of bulk financial movements to check terrorism financing.??There is need??for a review of the apex bank?s January 2014 directive to?banks to sell forex on demand to the BDCs, so as to increase dollar supply, and reduce the margin between official and black market exchange rates, without minding the antisocial threat of money laundering, bulk money trafficking and possibly, terrorism financing.
The CBN cash withdrawal limit policy should be strictly implemented, particularly during general elections in Nigeria. It is also expedient for the CBN to make available to the EFCC?the huge dossier that the Governor possesses according to his September 2013 letter to the President, on trails of money laundering uncovered by the apex bank in certain sectors, especially in the acquisition of private aircrafts!
The CBN should also ?redflag? accounts where substantial currency transactions take place, particularly if it is owned by countries that have been designated as high risk such as lran, Mauritania, Yemen, Pakistan, Sudan, Afghanistan, Lebanon and other nations associated with violent religious groups. Insulating financial reporting systems are required. The apex bank should also request banks to submit financial transactions of its most active customers, including private investment companies, Non-Governmental??Organisations, consulate accounts, brokers and anyone with access to government assets.
The federal government should adequately fund the training of Nigeria?s police operatives on investigation of financial crimes and criminal transactions. Security agencies in collaboration with banks and other financial institutions in the country should monitor accounts belonging to foreign embassies, politically exposed persons and other high net worth individuals, which could be used to launder money and finance terrorism. This is because stolen public funds could constitute part of terrorism funds. In a corruption-friendly country like Nigeria, such high net worth individuals should include??former heads of state, state governors, local government chairmen , senior government,? and political party officials and their family members.
The implementation of key laws within the borders must ensure that terrorism funds are not easily moved through the borders, airports or even through banks unnoticed. There has to be enough systems in place to prevent such transfer or ensure that they are used for the purpose they were meant for.??Government should also ensure that people do not easily buy weapons by putting in the right structures in place. The porousness of borders, airports and seaports that encourage smuggling, money-laundering and drug trafficking should be checked by government.
Outside the social media, media organizations suspected to be working for terrorist organizations should be thoroughly investigated.
Nigeria?s poverty rate of over 70% and unemployment rate of over 24% with 38% of unemployed in the 15-24 year bracket and 22.4% in the 25-44 year bracket, are conditions that have helped to create enabling environment for the recruitment and radicalization of deprived youths for terrorist activities. Government has to make frantic efforts to address youths unemployment problems and minimize youths vulnerability to terrorism recruitment.
According to Nigeria Financial Intelligence Unit (NFIU), the source of funds for terrorist financing may be legal as well as illegal and the financiers seek to convert these into support for an illegal act. According to Financial Action Task Force (FATF), terror networks often use compromised or complicit charities and businesses to support their objectives. For example, some groups have links to charity branches in high-risk areas and/or under-developed parts of the world where the welfare provision available from the state is limited or non-existent. In this context, groups that use terrorism as a primary means to pursue their objectives can also utilise affiliated charities as a source of financing that may be diverted to fund terrorist attacks and terrorist recruitment by providing a veil of legitimacy over an organisation based on terrorism.
Mr. Melaye identified some signals for suspicion: ?For instance, if someone in Afghanistan is sending $10 million to support the mosque in Maiduguri, then there is a problem. It is a suspicious transaction. Although it is a noble thing to do, at the same time, it is a suspicious transaction which must be reported and checked,? he said.
The false perception that oil is still Nigeria?s highest revenue generation source should be corrected, considering the amount of revenue generated by the customs and the Federal Inland Revenue Service (FIRS). This erroneous opinion could sustain on-going cases of missing funds from the financial system and create opportunities for such funds to play into the hands of terrorist sponsors.
To increase monitoring of criminal activities and prosecution of those who habour terrorists or create haven for their activities, there is an urgent need to fix the prevalent??electricity power issues and make the installation of CCTV Cameras on Nigerian streets a fruitful exercise.
All suspected terrorists and agents arrested by security agencies should be made to expose their sponsors and such sponsors when discovered, should be prosecuted and seen to be prosecuted. Sponsors of terror cells residing in neighbouring countries should also be investigated, exposed and prosecuted through collaboration with governments of those countries.
Disrupting funding flows creates a hostile environment for terrorism, constraining overall capabilities of terrorists and helping frustrate their ability to implement attacks. Disrupting terrorist financing involves both systemic protective mechanisms, which protect the financial system from criminal abuse.
BY ALBINUS CHIEDU, PUBLIC AFFAIRS ANALYST/CEO, OUTPUT COMMUNICATIONS, 29, ADENIYI JONES AVENUE, IKEJA, [email protected]
