EFCC seeks stronger partnership to curb terrorist financing, protect CSOs

The Economic and Financial Crimes Commission (EFCC) is urging for stronger partnerships across Africa to effectively combat terrorist financing while ensuring legitimate charitable organizations are not unduly burdened by regulations. Speaking at a conference in Abuja, EFCC Chairman Olanipekun Olukoyede emphasized the need for a risk-based approach to implementing Financial Action Task Force (FATF) Recommendation 8.

Olukoyede, represented by Harry Erin, Director of the Special Control Unit against Money Laundering (SCUML), stated that terrorist financing, extremism, organized crime, and illicit financial flows pose significant threats to peace, democracy, and economic development on the continent. He clarified that FATF Recommendation 8 aims to identify organizations vulnerable to terrorist financing abuse, not to restrict all non-profit activities. Safeguarding legitimate humanitarian and development work is crucial.

"Effective implementation of FATF Recommendation 8 depends on trust, trust between regulators and civil society, trust between governments and development partners, built through transparency, consultation, information sharing and mutual respect," Olukoyede said. He highlighted Nigeria's inter-agency collaboration, involving the EFCC, SCUML, the Nigerian Financial Intelligence Unit (NFIU), the Office of the National Security Adviser, the Corporate Affairs Commission, and civil society groups. This collaboration has enabled a comprehensive risk assessment of the non-profit sector, leading to a more targeted regulatory approach.

Victoria Ibezim-Ohaeri, Executive Director of Spaces for Change (S4C), noted that the conference marked a decade of advocacy for the proper implementation of FATF Recommendation 8 in Nigeria. She stated that sustained engagement between civil society and regulators has transformed their relationship from contentious to collaborative. This has resulted in significant reforms, including Nigeria's standalone terrorist financing risk assessment for the non-profit sector and the removal of non-profit organizations from the list of reporting entities under the Money Laundering Act.

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Effective implementation of FATF Recommendation 8 depends on trust, trust between regulators and civil society, trust between governments and development partners, built through transparency, consultation, information sharing and mutual respect.