Collaboration Urged in Fight Against Money Laundering and Terrorist Financing in Africa
The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoede, has emphasized the importance of enhanced collaboration among governments, civil society organizations, financial institutions, and development partners. This collective effort is essential for combating money laundering and terrorist financing across Africa.
Call to Action at AML/CFT Conference
Olukoede made this appeal during the opening of the 3rd African High-Level Civil Society Counter-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Conference 2026 in Abuja. He stressed the necessity for integrated actions rooted in legal and institutional frameworks to address the escalating threats posed by these illicit activities.
Trust and Partnership as Fundamental Pillars
Represented by Harry Ellin, the Director General of the Special Monitoring Unit Against Money Laundering (SCUML), Olukoede highlighted that trust and shared responsibility remain crucial in the fight against illicit financial flows and terrorist financing. He asserted that strong legal frameworks alone are insufficient; they must be complemented by robust partnerships.
Addressing the Challenges Facing Africa
Speaking to a diverse audience from across the continent, Olukoede outlined that Africa grapples with challenges related to terrorist financing, violent extremism, organized crime, and illicit financial flows. He warned that these issues threaten peace, erode democratic institutions, hinder investment, and divert crucial resources meant for development.
Clarifying FATF Recommendation 8’s Intent
On the conference’s theme, which centers around the correct implementation of FATF Recommendation 8, Olukoede clarified that the Financial Action Task Force’s guidelines aim to shield the nonprofit sector from exploitation by terrorist financiers rather than impose undue restrictions on legitimate organizations.
Collaborative Approach in Nigeria
He noted that Nigeria’s approach to implementing Recommendation 8 has involved close cooperation between the EFCC, the Nigeria Financial Intelligence Unit (NFIU), the Office of the National Security Adviser (ONSA), the Corporate Affairs Commission (CAC), and civil society groups. This collaborative effort has led to a comprehensive national risk assessment of terrorist financing within the nonprofit sector, identifying genuine risks without imposing excessive regulatory burdens on legitimate organizations.
Reflecting on Past Challenges and Future Opportunities
Victoria Ibejim Ohaeli, Executive Director of Spaces for Change, reflected on a decade of advocacy against money laundering and terrorist financing in Nigeria, highlighting that while the journey had been fraught with challenges, it has also been rewarding. Initial interactions between government agencies and nonprofit organizations were marked by distrust, which has since evolved into stronger dialogue, initiated by the EFCC in 2019.
The Toll of Illicit Financial Flows
Samuel Diminas, Chair of the Board for Spaces for Change, pointed out the staggering scale of illicit financial flows from the continent, indicating that Africa loses over $88 billion annually. These losses translate into tangible consequences, including unbuilt schools and underfunded hospitals. He called upon governments, regulators, and civil society to unite in safeguarding fiscal health and civic space, underscoring the need for collaborative action to effectively address illicit finance in Africa.
Recent legislative measures in Nigeria, such as the Money Laundering (Prevention and Prohibition) Act and the Terrorism (Prevention and Prohibition) Act, have fortified the country’s anti-money laundering and counter-terrorist financing framework, aligning it with international standards. These reforms not only address deficiencies identified by global watchdogs but also contributed to Nigeria’s removal from the FATF gray list, marking significant progress in enhancing its AML/CFT regime.
