US embassy cable - 02ABUJA3138

UNCLAS ABUJA 003138 
 
SIPDIS 
 
 
SENSITIVE 
 
 
FOR INL AND AF 
. 
TREASURY FOR DO - SHAUN LONERGAN 
 
 
E.O. 12958: N/A 
TAGS: KCRM, EFIN, SNAR, NI 
SUBJECT: FATF UPDATE: NATIONAL ASSEMBLY MOVES ON LEGISLATION 
 
 
REF: ABUJA 2875 AND PREVIOUS 
 
 
1. Ambassador Jeter and RNLEO called on Deputy Speaker of the 
House of Representatives Chidubom Nwuche (PDP-Rivers State) 
November 15 to underscore the need for money laundering 
legislation prior to a December 15 deadline imposed by the 
Financial Action Task Force (FATF) at its October 9-11 
meeting in Paris. 
 
 
2. The Ambassador emphasized the real threat of 
"counter-measures" to be imposed after December 15 if the GON 
fails to pass key money laundering legislation identified by 
the FATF.  He described the adverse effect these sanctions 
will have on the Nigerian financial sector, the economy, and 
ultimately the Nigerian public. 
 
 
3. Nwuche responded positively, agreeing that the situation 
is serious.  He reported to the Ambassador that the House is 
ready to act on the draft Financial Crimes Commission (FCC) 
Act sent to the National Assembly last month by the 
Presidency.  Before it can act, however, the House must have 
the bill gazetted by the National Assembly's print shop in 
Lagos.  The FCC bill was sent to Lagos two days ago and 
should be gazetted and ready for its first and second 
readings by the middle of next week, the Deputy Speaker 
claimed. 
 
 
4. Ambassador Jeter clarified that there are three pieces of 
money laundering legislation awaiting the Assembly's urgent 
passage -- the Financial Crimes Commission (FCC) Act and 
amendments to the 1995 Money Laundering and 1991 Banking and 
Other Financial Institutions (BOFI) Acts.  Nwuche then noted 
that the two amendments would be far easier to pass since 
they modify existing law while the Financial Crimes 
Commission Act would require extensive review to ensure it 
does not conflict with existing laws.  The Deputy Speaker 
asked if the passage of the two amendments would be 
sufficient to forestall the FATF sanctions.  Jeter responded 
that these are the most important legislative reforms as they 
broaden the scope of money laundering beyond solely drug 
trafficking proceeds and therefore should be enough to 
satisfy the FATF, though passage of the FCC bill is still 
desired and would demonstrate even further Nigeria's 
commitment to combat money laundering and other financial 
crimes. 
 
 
5. Comment:  Nwuche had called the press corps for the 
meeting, which the Ambassador obliged by giving a statement 
before asking that the press depart the Deputy Speaker's 
office.  In that press statement, which will likely be given 
extensive local coverage, the Ambassador underscored the need 
for rapid GON movement on the money laundering legislation 
prior to December 15 and outlined some of the possible 
consequences if that legislation is not enacted.  Nwuche 
appears sincere in his stated commitment to getting the 
requisite legislation -- which we understand is the Money 
Laundering Act amendment -- passed within the next 30 days. 
 
 
JETER