SCUML is the benchmark in the supervision, monitoring and regulation of the Designated Non-Financial Institutions (DNFI)
By Ishaya Ibrahim, News Editor
The many gaps in the operations of nonprofits that may be exploited for terrorism financing were the dominant theme in the one-day sensitization workshop on ‘risk assessment of nonprofits organisations in Nigeria.’
The workshop, held today in Lagos, was the joint effort of a non-governmental organization, Spaces for Change, and the Special Control Unit against Money Laundering (SCUML).
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Various NGOs, the Economic and Financial Crimes Commission (EFCC), the Federal Ministry of Finance were among the participants at the interactive session which identified the many terrorisms financing risks of the nonprofits.
Executive director of Spaces for Change, Victoria Ibezim-Ohaeri, explained that terrorism financing includes any efforts that could aid the operations of terrorist activities whether knowingly or unknowingly, which may include cash donations, gifts, services or concealment of information.
She said mere fetching of water for a terrorist organization could lead to one being charged with furthering the activities of a terrorist organisation.
Other activities of nonprofits that may unwittingly fund terrorist operations are; giving out aids without a prior vetting of beneficiaries, recruiting staff and volunteers without background checks, dealing with Bureau De Change operators who may be terrorist aiders, making payments in cash instead of banks etc.
SCUML deputy director, Ibinabo Amachree, said the risk assessment on terrorism financing in Nigeria was critical because, in the last exercise, Nigeria was tagged as non-compliant by the Financial Action Task Force (FATT).
The implication of a country being designated non-compliant raises many financial challenges for the country, including the unwillingness of lending institutions to extend financial assistance to them.
Participants at the event lamented the difficulty in filling out SCUML registration form online, and the challenge they face in accessing their funds from banks because of the lack of SCUML certification. Others say they have completed SCUML registration for some years now but are yet to get their certificates.
Amachree, the SCUML representative, explained to the participants how the registration could be completed seamlessly. She also assured those who haven’t gotten their certificates, to reach out to the organization and they would be attended to.
She said plans are also underway by SCUML to start the issuance of e-certificates.
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