Money laundering: Analysis on the placement methods

The International Monetary Fund (IMF) in 2015 estimated the size of money laundering to be at 2-5% of the world Global Domestic Production (GDP) with around USD800 billion to USD2 trillion being laundered. The global criminal activities are on the rise and the contribution of money laundering to exacerbate the problems associated with the upsurge in the criminal activities is unquantifiable. The negative effect of this on global economic development has grown to a staggering proportion. This is partly because the crisis experienced due to increase in criminal activities is borne out of the fact that the life blood of almost all the crimes are embedded in the financial system. Ironically, detecting money laundering becomes extremely difficult once it has been allowed to crystallized at layering level and finds its ways to the legitimate fund through integration mechanism. To combat money laundering, the parties must understand how money-laundering activities operate. The need to institute greater vigilance to prevent money laundering therefore becomes imperative. This has become the primary focus of most of the Anti-Money Laundering (AML) compliance measures and anti-crime initiatives at local and international levels. This paper therefore focus on the need to nib this dreaded crime at a point where it is almost likely to be detected. By using Malaysia as a focal point, the need to institute greater vigilance at placement level to salvage and ensure financial integrity in the banking sector as a necessary antidote to this problem is therefore the thrust or contention of this paper

Money laundering: The paradox of deterrence mechanism

The menace of money laundering is globally acknowledged and the spate of its increase remains unabated. However, a potent tool to deal effectively with this problem lies in the procedure and efficacy of prosecution. Though a lot has been achieved in term of legal and regulatory framework, it is imperative to note that in an environment where corrupt practises remained unpunished due to lack of enforcement, all efforts are likely to be lost. Law enforcement and other supporting agencies will unlikely have any real impact. Unfortunately, this is the scenario in most developing countries of the world including Nigeria. Potent strategies are therefore required for effective implementation of the legislations. This paper seeks to examine money laundering activities in Nigeria while focusing on implementation challenges and obstacles. Suggestions and recommendations are also included on how to achieve enforcement and the subsequent effective implementation of AML/CFT. It is therefore the contention of this paper that achieving deterrent is hinges on a strengthen AML/CFT framework and to this effect, having a strong political commitment and well-functioning coordination structures is essential. Proper resources to achieve the policy objectives, in addition to coordination arrangements that will effectively support the implementation of activities are also fundamental to reach the deterrent effect

The Examination of Anti-Money Laundering Laws in Nigeria as International Law Overview

The money laundering along with other economic and financial crimes continues to increase unabated. It remains one of the major problems of the country which has retarded immensely its growth and economic development. This research aims to examine the provisions of the current Anti-Money Laundering Act in Nigeria, as the country is under obligation to comply with the international standard, having signed and ratified “Vienna Convention and Palermo Convention”. This research used a doctrinal method which examined and analysed the provision of the Money Laundering (Prohibition) Act 2011. A deducible impression that this created is that it is either those laws are not effective or there is no political will to execute. Combating money laundering therefore requires more than having an array of legal framework. The implementation of those laws is germane for a desire result

Shari'ah and religious arbitration in english courts

There is an emerging paradigm shift in English courts’ attitude towards Islamic law principles from cheer hostility in the colonial era towards modern convergence in the birthplace of common law. This situation might be a result of the heterogeneous nature of contemporary British societies, with its growing immigrant and religious communities, and their quest for an effective dispute resolution mechanism suitable for their religion and satisfy their cultural sensitivities. This paper seeks to examine English courts’ general attitude towards religious courts and tribunals, particularly the current state of convergence between common law and Shari’ah in England and Wales. The role of the UK Arbitration Act 1996 and English case law in regulating religious arbitration and the natural convergence established in recent years in England is also analysed. The paper finds that developments in recent years, including the proliferation of Muslim Tribunals in England, have heralded a new theory of convergence of Shari’ah law and common law in the aspect of Family Law and Marriage in contemporary English courts. These developments have contributed to reshaping the evolution and relationship between these two major world Legal systems

AN EXAMINATIONS OF ALLEGATION OF NON-COMPLIANCE WITH AML/CFT LAWS AGAINST ISLAMIC BANKING

The dangerous dimension which the terrorism financing incursion introduced to peace and harmonious life globally makes the issue of money laundering and combatting financing terrorism (AML/CFT) a serious phenomenon. The compliance with the AML/CFT laws now generates global interest. Assessment of whether Islamic banks are complying with AML/CFT compliance measures becomes a grave issue that require attention particularly against the background of allegation by Western countries of lax control and supervision. This is probably because of the havoc that the world has continuously experienced as a result of this menace. The issue has continued to come in different dimensions and like a Siamese twin, the banks have become the focal point and inseparable in the issue of how to combat this menace. Incidentally, the increase in the growth and development of Islamic banks across the globe has dragged it to the centre of discussion. Thus, there have being a recurring issue on Islamic financial institutions regarding its compliance with Anti-money laundering laws and Combating Financing Terrorism (AML/CFT) measures. There were allegations of non-compliance with AMLCFT laws by Islamic banks, particularly by some Western countries led by the United States of America. Consequently,  the issue of combatting money laundering and terrorism has become a major issue in the global domain. This paper has extensively examined the allegation of non-compliance of Islamic banks with AML/ CFT laws. This is done by beaming searching light on the growing perception of lax in the control, monitoring, weak supervision, and non-compliance of Islamic banks with AML/CFT measures that is been spearheaded by some western countries, led by the US. Thus, by using the doctrinal research methodology, the paper sought to determine the veracity of the allegation and incidentally found that the allegation is not only baseless but lacks empirical evidence.