WITH success of the U.S. government in nailing down loots of two former Nigerian governors, politicians and top public officials will find it more difficult to use American banks as haven for stolen funds, if a new rule by the U.S. government on customer disclosure becomes law.
This is coming on the heels of demand by the American government that President Jonathan provides better proof of Nigeria’s anti-corruption claims.
Informed sources said the recent meeting between Jonathan and U.S. Secretary of State, Hillary Clinton in Abuja, discussed anti-corruption efforts in Nigeria and the Americans were said to have noted very low level of convictions despite the depth of official graft in the country.
Currently, the U.S. government is said to be keenly following the petroleum subsidy scandal reports and recent court cases. It is, however, without any reliable assurance that these cases would not fall through the cracks. On its part, the U.S. Justice Department has been celebrating success of its own anti-corruption efforts on two former Nigerian governors.
The Justice Department, the equivalent of the Ministry of Justice in Nigeria, through its Asset Recovery Programme, recently, seized some of the stolen loot and assets of former governors D.S.P Alamieyeseigha of Bayelsa State and James Ibori of Delta State, and is planning to go after more of their assets in the U.S.
On the strength of its ability to seize some of the loot, the Justice and Commerce Departments are now trying to enforce stricter banking rules that will for instance make the use of shell companies less useful to looters of public funds in places like Nigeria where such has been in active use by public office holders.
On at least two occasions in the U.S. during the last month, the American government has credited its Asset Recovery programme with success for nailing the loots.
Once at a World Bank event and another at a public hearing in Washington DC, top U.S. government officials, like Assistant Attorney-General from the Justice Department, Lanny A. Breuer, has argued that tougher banking rules on customer disclosure will curb money laundering as such tougher enforcements nailed several cases of kleptocracy including the Nigerian duo.
Breuer said: “We know that a key way in which criminals launder the proceeds of their crimes is through the use of shell companies. They open bank accounts in the name of a shell company, for example, and then use that company to conduct business transactions that appear legitimate. In short, these individuals use the United States financial system to commit or facilitate crimes.”
Detailing how the U.S. nailed both governors, Breuer said: “We have recently had our first successes in this area, each of which involved the use of shell companies. Last month, we announced that we had forfeited over $400,000 in assets traceable to Solomon Peter Alamieyeseigha, a former governor of the oil-producing Bayelsa State in Nigeria. We allege that his official salary for the entire period that he was governor was approximately $81,000, and that he had a total declared income during that period of approximately $248,000, but that he nevertheless accumulated millions of dollars in wealth at the same time – through corruption.”
Continuing at a public hearing, late last month, the Assistant AG added that the U.S. govt alleged: “ Alamieyeseigha used shell companies to launder his corruption proceeds and, indeed, he pleaded guilty in Nigeria to money laundering violations on behalf of certain of those companies. In addition to the money that we recently forfeited, we are also seeking to forfeit, in a separate action, $600,000 worth of property held in the name of one of his shell companies.”
The official added “a second example”, involving former Governor James Onanefe Ibori, explaining that recently, “we announced that we had secured a restraining order against more than $3 million in corruption proceeds related to Ibori. Ibori was convicted in the United Kingdom on money laundering and fraud charges and sentenced to 13 years in prison. We allege that he used shell companies and bank accounts in the United Kingdom and the United States to hide his money.”
But U.S. sources are said to have also complained that neither Ibori nor Alamieyeseigha were effectively brought to book in Nigeria, nor has the current government shown conclusive proof, it is going to make a clear difference in the anti-corruption war.
The U.S. delegation that came with Clinton to Abuja recently raised the anti-corruption issue with President Jonathan and his Attorney General and also met the EFCC Chairman, who is said to be receiving technical assistance from the Americans.
Under the proposed stricter customer disclosure being proposed in U.S. banks would be required to “routinely disclose beneficial ownership information” as part of their customer due diligence programmes.
With such routine disclosure of beneficial ownership information, the U.S.’ ability “to provide information in response to requests from our foreign allies, conducting their own investigations,” according to the Assistant AG would also be enhanced. That way, countries serious about fighting corruption through agencies, like the EFCC or their Justice Departments, can also get more implicating information from the U.S.
According to the top U.S. official, “the proposed customer due diligence rulemaking under consideration will help us to address these challenges, and hopefully discourage criminals from using the United States’ financial system to commit crimes.”
But U.S. sources are said to have also complained that neither Ibori nor DSP were effectively brought to book in Nigeria, nor has the current FG shown conclusive proof, it was going to make a clear difference in the anti-corruption war.
However, the US delegation that came with Clinton to Abuja recently raised the anti-corruption issue with President Jonathan and his Attorney General and also met the EFCC Chairman, who is said to be receiving technical assistance with the Americans.
Under the proposed stricter customer disclosure being proposed in the US, banks would be required to “routinely disclose beneficial ownership information” as part of their customer due diligence programs.
With such routine disclosure of beneficial ownership information, the US ability “to provide information in response to requests from our foreign allies, conducting their own investigations,” according to the Assistant AG would also be enhanced. That way countries serious about fighting corruption through agencies like the EFCC or their Justice Departments can also get more implicating information from the US.
According to the top US official, “the proposed customer due diligence rulemaking under consideration will help us to address these challenges, and hopefully discourage criminals from using the United States financial system to commit crimes.”
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