Devastating Social Impact of Bribery, Corruption, Money Laundering & Financial Crimes

For the past quarter of a Century, I have seen, observed, experienced and dealt with various Financial Crimes on this earth. My first professional assignment entailed ëxamining the practices and procedures of client organizations and facilitating the discovery of all forms of malpractices and giving professional advice to organizations and institutions on ways and means of promoting accountability, transparency, reducing and preventing opportunities for corruption, fraud and such criminal malpractices. It is always cheaper to drain the swamps than fight the alligators and crocodiles. I will continue sharing the financial typologies on this forum and several others. I will be more inclined to touch on some high level Legal and Compliance, Financial Crime Risks, Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF), Sanctions, Anti-Bribery & Corruption (ABC), Fraud Examination – Prevention, Investigations and prosecution, Banking Security whilst at the same time promoting Good Governance, Transparency, Integrity and Accountability. You are cordially welcome. Let us begin with Africa.  There is a paper entitled “The Devastating impact of Money Laundering and other Economic and Financial Crimes on the Economy of Developing Countries: Nigeria as a Case Study by Yusuf and Ibrahim from the International Islamic University Malaysia. The paper makes very interesting reading. You are encouraged to read, if you have a moment to spare. You can google it up in PDF. The paper argues that Economic and financial crimes represent a dangerous form of criminal behaviour that affects not only individual member of a society but also having deleterious effects on the economic, health and material welfare of the community as a whole. Economic and financial crimes are non-violent criminal practices which are tantamount to sabotage of the national economy. This is because of the impact of these offences on the social well being and economic foundation of any nation. This paper examines the general consequences of economic and financial crimes especially money laundering on the economy of the developing countries using Nigeria as a case study. The study finds that the common characteristic of the effects of economic and financial crimes in the developing countries is its tendency to undermine a nation economy which in turn often results in decelerated improvement in the quality of life of citizens and paving way for economic cum political stagnation. This finding represents a major problem Nigeria like many other developing countries is presently grappling with as a result of the prevalence of economic and financial crimes. The paper concludes by recommending a strong legal regime coupled with political will to combat the menace and minimise its devastating consequences. In Section 3.1 CONSEQUENCES OF ECONOMIC AND FINANCIAL CRIMES IN NIGERIA, some very alarming figures are mentioned. The gloomy picture reminds us of Zambia and our God Given Natural Resource of “COPPER”. The paper states, “In spite of Nigeria’s enormous oil and gas deposit and abundant human resources, the nation is still a poor country with 80-90 million Nigerians out of the 140 million population living in abject poverty. For the past four decades, over $300 Billion was earned from oil exports but paradoxically Nigeria’s current per capital income is about 20% less than the 1975 level while the nation suffers under an excruciating external debt burden of about $33 Billion, equivalent of 60% of the nation’s GDP. The pathetic consequences of economic and financial crimes in Nigeria is well captured by Nuhu Ribadu, the former Executive Chairman of the Economic and Financial Crimes Commission (EFCC) Nigeria, when he disclosed thus; ” Without seeking to befog you with statistics, let me share a few example of what corruption has cost us as a people and as a nation. My pet example is the £ 20 Billion Pounds (about $500 Billion) of development assistance that has been stolen from this country since independence to date by past leaders of our country …the money could create the beauty and glory of Western Europe six times all over Nigeria. Nigerians line at the gate of Western Embassies daily in search of visas to flee the country, but the best way to appreciate this figure is to recall that it represents six times the value in money that went into rebuilding Europe via the famous Marshal at the end of the 2nd World War. We need to seriously introspect, reflect on the African Countries and Zambian current and future state. Stay well and be blessed

Published by Kunda Kalaba

Financial Crime Compliance (FCC) professional. Passionate about AML/CTF, Sanctions, ABC, KYC, CDD. Member - World Advisory Council Association of Certified Fraud Examiners-ACFE. Member of the African Task Force Committee - ACAMS. Presenter at International Conferences-ACAMS&ACFE. Certified Fraud Examiner-CFE. ACFE & ACAMS Singapore Chapters Member. Certified Anti-Money Laundering Specialist-CAMS. Certified Anti-Bribery and Corruption-ABC. Chairperson, ABC Working Group. Founder - Institute of Directors (IoD) Zambia Chapter. Founder - Managerial Accountability & Transparency. Two-term of two years Chairperson of the Bankers Association of Zambia Fraud Prevention and Security Committee. Zambian Government to SADC and COMESA Consultant on Crime & Corruption Prevention & management Strategies. Sound & vast experience in FCC Compliance, Deterrence, Prevention, Detection, Investigations, Security and Prosecutions. 25 years extensive experience in FCC, ABC, AML, CTF, Fraud & Operational risk assessment & Investigations. STA in Financial Crime Compliance & Risk management in London, Coventry & Southampton in the UK. Area Head of FCC for Southern & East Africa responsible for Risk Assessments & Investigations, AML/CTF, Sanctions. Central Bank regulatory and AML Directives appointed as Country Money Laundering Prevention/Reporting Officer-CMLPO. Professionally trained “trainer of trainers” & core facilitator. Proficient with proven track record of exceptional abilities in management and leadership for performance. Corporate Governance, capacity building, Institutional & Organizational development, business process re-engineering. Technical expertise is coupled with excellent interpersonal, team building, communication and presentation skills.

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