WHO PAYS AND WHO SHOULD PAY?
Keynote Address By Abdulrasheed Bawa CFE, CAMS, Executive Chairman, Economic and Financial Crimes Commission (EFCC) delivered at the 38th Cambridge International Symposium on Economic Crime held at Jesus College, University of Cambridge, United Kingdom… y
ICrimet is a privilege and honour to be part of this historic and intellectual gathering but more so to be invited as a keynote speaker. This year’s theme: “Economic - who pays and who should pay?” marks the 38th series of the Symposium. I wish to note that the theme has been carefully selected to x-ray the global challenges associated with economic crimes. May I, therefore, extend my sincere appreciation to the organizers for their insight in eliciting a global response to the challenges of economic crimes.
I bring you greetings from Nigeria, particularly from the Economic and Financial Crimes Commission (EFCC), the leading anti-corruption agency in Nigeria charged with the responsibility of prevention, investigation, and prosecution of economic and financial crimes.
Let me at the onset start by giving a brief definition of economic crime. According to Europol, “economic crime, also known as financial crime, refers to illegal acts committed by an individual or a group of individuals to obtain a financial or professional advantage. The principal motive in such crime is economic gain”.
In Nigeria, the Economic and Financial Crimes Commission (Establishment) Act, 2004 defines “Economic and Financial Crimes” as:
“non-violent criminal and illicit activity committed with the objectives of earning wealth illegally either individually or in a group or organized manner, thereby violating existing legislation governing the economic activities of government and its administration and includes any form of fraud, narcotic drug trafficking, money laundering, embezzlement, bribery, looting and any form of corrupt malpractices, illegal arms deal, smuggling, human trafficking and child labour, illegal oil bunkering and illegal mining, tax evasion, foreign exchange malpractices including counterfeiting of currency, theft of intellectual property and piracy, open market abuse, dumping of toxic wastes and prohibited goods, etc”.
It suffices to say that economic crimes are universal in nature and are the types of crimes that can affect a country’s economic policies, systems, objectives and social interests. Economic crimes are global challenges confronting every nation today as they undermine peace, security and economic development. Economic crimes erode national incomes and exacerbate economic hardships. By their very nature, economic crimes affect the vital structures of global economies, causing significant damage to the Global Financial System and depriving developing nations of the needed resources for sustainable development.
Indeed, developed countries are also not left out, as the impact of economic crimes has been magnified with the proliferation of cyber-crimes which threaten the stability of global financial institutions. The developments in new technologies and the growth of cryptocurrencies portrays a far greater danger to the world economy than ever before with many criminals playing significant roles in crypto-currency markets. Criminals now elect to transact or receive illegal monies (such as ransom money) for cyber-attacks in cryptocurrencies with Bitcoins and Ethereum as the most commonly used mediums for these exchanges.
The sophistication and complexity that defines the dynamics of economic crime in the 21st century continues to evolve, spurred by technological advancement in the global economy that has become borderless and transnational. This has inevitably led to the prioritization of law enforcement action on crimes that drive Illicit Financial Flows (IFFs) across the globe.
The 2020 Global Financial Integrity Group report estimated that, IFFs account for about $1.3 trillion in lost revenues for the African continent. Such monies channeled through the underground economy are also used to fund other criminal activities including insurgency, terrorism and cybercrime, amongst other threats. These challenges continue to aggravate the state of developing economies and translate to deprivation, poverty, and dearth of infrastructural and basic amenities.
Consequently, in June this year, at the Special Session of the United Nations General Assembly (UNGASS) against Corruption which held in New York, Nigeria called for a multifaceted approach to addressing IFFs, consistent with the recommendation of the High-Level Panel Report on International Financial Accountability, Transparency and Integrity for achieving the 2030 Agenda (FACTI). The FACTI Panel Report has provided paths to financial integrity for sustainable development, strongly showing how to redirect stolen resources lost through illicit flows, to finance the implementation of the 2030 Agenda and the achievement of the Sustainable Development Goals (SDGs).
The fight against economic crimes therefore remains a formidable task that must be addressed globally. It requires the collective resolve and effective collaboration of competent authorities especially in the wake of technological advancement where measures aimed at inclusive growth, are easily exploited by criminal elements to perpetuate their acts. Authorities are by the day challenged with the responsibility of devising counter measures against economic crimes instead of utilizing their skills towards the attainment of sustainable development.
Governments at all levels must therefore devote more attention to addressing the challenges of economic crime. In Nigeria, the Government of His Excellency, President Muhammadu Buhari has prioritized action against economic crimes by introducing legislations and policies targeted at strengthening and stabilizing the financial system.
The Law enforcement legal framework has been strengthened through the enactment and amendment of relevant laws aimed at enhancing transparency and accountability in Public and Private Sectors of the economy. Other measures implemented in Nigeria include amongst others; the Treasury Single Account to enhance transparency in public expenditure, Bank Verification Number to link individuals to financial transactions, cashless policy to reduce the informal economy, and whistle blower policy to encourage reporting of crime.
Specifically, the EFCC has been at the forefront of the national action against economic crimes in Nigeria with many notable achievements recorded in investigations, prosecutions and asset recovery. Since its establishment in 2003, the Commission has recorded no less than 3,500 convictions and recovered assets of significant value including properties in Nigeria, the UK, USA and the UAE. All these have measurably contributed to the national efforts against economic crimes in Nigeria. On the regional and international front, the EFCC continues to engage with relevant Law Enforcement Agencies in information and intelligence sharing, institutional strengthening and technical capacity-building.
It is, therefore, my firm belief that the choice of the theme “Economic Crime - who pays and who should pay?” is particularly essential in addressing the challenges of economic crimes. As the victims of crime continue to suffer globally from the effects of financial crimes, either directly or indirectly as part of a social system, the determination of who pays or who should pay becomes a critical measure of the criminal justice system in place. The judiciary, being one of the key stakeholders in the justice system and the third estate of the realm presupposes impartiality and integrity in the application of the rule of law and thus ensures that the perpetrators of acts and not the victims pay for their crimes. The onus therefore lies with national governments to ensure that an effective and efficient criminal justice system comprising of the key practitioners (law enforcement agencies, judiciary, prosecutors, courts, lawyers, prisons/correctional facilities etc) is established and its independence guaranteed.
Accordingly, we at the EFCC seek to forge closer collaborations and prioritize law-enforcement to lawenforcement cooperation. This has consistently proven effective, and translated to recoveries of millions of United States Dollars and assets of significant value.
In concluding, I would like to use this opportunity to reiterate that information and intelligence sharing as well as effective collaboration amongst relevant law enforcement agencies across the world are key to successful action against economic crimes. In the words of Martin Luther King (Jr):
“The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands in times of challenge and controversy.”
Therefore, in the days ahead, as we engage in discourse on the issues pertaining to economic crimes, let us not forget that we owe the world a duty to come up with practical solutions to curb this international threat. I believe that deliberations here will undoubtedly lead to practical multi-stakeholder engagement and action. Moreso, I am hopeful that the resolutions would go a long way in enhancing global leaders’ integrity, accountability, and transparency in public expenditure.
Thank you for your kind attention.