SEC tightens checks as criminals take to capital market for illicit financing

As criminals, especially terrorists and money launderers, now deploy new tactics of moving monies to perpetrate their dastardly acts through other sources aside the financial institutions, the Securities and Exchange Commission (SEC) is also putting necessary checks to counter such vulnerability.

Consequently, SEC has announced that it is collaborating with the Nigerian Financial Intelligence Unit (NFIU) of the Economic and Financial Crimes Commission (EFCC) to check inflow of illicit funds into the Nigerian economy.

SEC has also expressed readiness to work with all relevant government agencies and stakeholders to ensure strict enforcement of all applicable laws against money laundering in the Nigerian capital market.

Mounir Gwarzo, the acting director general of SEC, announced this when he received the director of NFIU, Usani Francis, in his office in Abuja on Tuesday.

Gwarzo said it was important for SEC to collaborate with all relevant stakeholders because of the critical role it plays in the financial system, particularly the need to police the market and ensure that activities are in the best interest of the Nigerian financial system.

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“For any operator coming before us for registration, first and foremost, it is mandatory that they have a compliance officer. If they do not have a compliance officer, we cannot grant them registration. Secondly, compliance officers must be very conversant with the workings of the NFIU,” a statement from SEC quoted Gwarzo to have said.

Gwarzo also disclosed that the commission was willing to work with the NFIU to build capacity through workshops or training exercise for compliance officers given that it is a recent development. He also noted that the responsibilities of a compliance officer go beyond knowledge of  the relevant laws that govern their operations.

“The compliance officers thing is a new thing in the market, I am not sure it is more than five years since we introduced it. But I think there is more to it and it is important that we collaborate to organise workshops for market operators especially the fund managers and the stockbrokers, that deal with collection of money”, Gwarzo

ONYINYE NWACHUKWU, Abuja