The Central Bank (CBN) has read the riot act to banks on the transfer of ill-gotten money from abroad, and warned that they (banks) would be made to pay any money transferred through them by advance fee fraudster, better known as 419.

“If any 419 transaction is successfully carried out through any bank, then we will make that bank to pay the money. Even if the money has been carried away, then we will hold the bank responsible,” Deputy Governor, Domestic Operations, Dr. Shamsuddeen Usman, told journalists in Abuja.

Dr. Usman, who is also the head of the Executive Sub-Committee of the National Committee on Money Laundering and Financial Crimes lamented that the nation’s image had suffered terribly especially with the recent blacklisting of Nigeria by the Financial Action Task Force of the International Monetary Fund (IMF), which warned foreign investors to be wary of Nigeria and Nigerians.

He also said the Financial Crimes Prevention Network of the United States Treasury had issued a similar alarm to all US financial institutions to be extra-careful in dealing with Nigerian businessmen.

“The Financial Action Task Force of the IMF has sent the name of Nigeria to all organisations, saying, be careful. Based on the blacklisting of Nigeria by the IMF, the US, Treasury has also sent a warning to all US financial institutions to be careful abut dealing with Nigeria.

He regretted that of the initial 17 countries blacklisted by the IMF, 10 had been given a clean bill, while Nigeria remained the only one yet to be recognised as having taken adequate steps towards improving its records.

Dr. Shamsuddeen pointed out that Nigeria was under threat of facing sanctions if adequate steps were not taken to tackle the problem before November.

Dr. Usman said the new step taken by the CBN was to curb transfer of 419 money from unsuspecting foreign businessmen by unscrupulous Nigerians.

He said two banks which he did not name had been made to refund such money to 419 victims, and that the measure was to ensure that the banks beefed up their know-your-customer procedure to avoid providing the platform for 419 operators.

His words: “When our examiners go to the banks now, we pay a lot more attention to the money laundering control procedure. We are looking at our examination with a view to widening the safety nets to check laundered money. There is certain minimum know-your-customer procedure which must be adhered to.”

Pleading for the support of the media in the struggle against 419 operators, the CBN chieftain declared that the damage to the image of Nigeria by those involved in such practices had a negative effect not as a nation but also on individual Nigerians who do genuine business or want to travel abroad and should, therefore, be a concern to all well-meaning Nigerians.

“Some of those problems are particularly Nigerian problems and only Nigerians can solve the problems. We have to work to redeem the image of our nation,” he said.

He revealed that part of the battle against financial crimes was the Bill on the establishment of the Financial Crimes Commission with a wide range of powers, including seizure of assets, to deal decisively with financial crimes.

The CBN official noted that unscrupulous Nigerians had been taking advantage of the present legal framework which has been described as weak.

The present committee is made up of representatives from the Presidency, CBN, Police, Nigerian Intelligence Agency, Ministries of Finance and Justice, the National Assembly, Corporate Affairs Commission, Securities and Exchange Commission (SEC), NDLEA, National Insurance Commission and NDIC.

Emma Ujah, Vanguard (Lagos), July 18, 2002