TAKING COUNTER-FINANCING OF TERRORISM FORWARD: STRENGTHENING STATES' CAPACITIES AND INTERNATIONAL AND REGIONAL COOPERATION DR. ABDULLAHI SHEHU DIRECTOR GENERAL INTER-GOVERNMENTAL ACTION GROUP AGAINST MONEY LAUNDERING IN WEST AFRICA (GIABA) UNCTED MEETING NEW YORK, USA November 20, 2012
1. In my remarks to this assembly last year regarding the implementation of UNSCR 1373 in the West African region, I indicated that experts have reported that Al-Qaeda has sleeper cells in several West African countries including Senegal and Guinea- Bissau and representatives of Al-Qaeda in the Islamic Maghreb (AQIM), which has its roots in Mali were working in silence, recruiting and doing field work 1. I also opined that in the case of Nigeria, it appeared that the home grown Boko Haram group may be aligning with terrorist organizations outside the West African region and this may lead to a virulent evolution where nationalistic home grown radical extremist and militants are being lured into international terrorism. I further proposed a need to place close attention to border control in the region and intensify efforts on international cooperation both within and outside the region. 2. A year later, we have seen the manifestation of the Islamic Maghreb (AQIM) in Mali and the influences of international terrorism on the operations of the Boko Haram. Outside the region terrorism has not abetted and there is an increasing number of terrorist attacks in more countries despite the good work by the CTD. Last month, the AFP reported that jihadist recruits are pouring into Mali from the entire West African region and even other countries outside the region. This disturbing trend highlights the ubitiquiosness of terrorism and its financing. The financing of terrorism is conducted in a clandestine manner thus, there is a crucial need for intelligence collection and covert actions to disrupt this phenomena. If the capabilities to acquire financial and other forms of intelligence are low then the likelihood of disrupting and dismantling terrorist financing is diminished. As such, there is a paramount and urgent need to strengthen the capacities of law enforcement agencies and security agencies in the region. 3. The Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) is the institution responsible for the implementation and coordination of AML/CFT efforts in the West African region. GIABA is a specialized institution of the Economic Community of West Africa States (ECOWAS), as well as a Financial Action task Force (FATF) Style Regional Body (FSRB). GIABA s mandate is to 1 AFP September, 27 2012
develop anti-money laundering and counter financing of terrorism (AML/CTF) measures and to coordinate regional efforts to combat ML and TF. Its membership consists of 15 fifteen ECOWAS Member States and one non-ecowas member. GIABA is, as such, a regional inter-governmental body which supports the work of the UN in preventing, detecting, deterring and suppressing terrorism, and in particular, its financing. 4. One of the main thrusts of the mandate of GIABA is to assess member states level of compliance with international standards on money laundering and terrorist financing through a mutual evaluation process on the FATF (Financial Action Task Force) Recommendations and Methodology and other international instruments. The FATF Recommendations enable countries to implement an effective and overarching AML/CFT policy and the mutual evaluation of the AML/CFT implementation allows a country to pinpoint the progress it been made and the vulnerabilities and deficiencies in their AML/CFT regimes. 5. In February this year, the Financial Action Task Force (FATF) issued the Revised International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation. The Revised Standards provide countries with more robust tools to fight financial crime. It clarifies the requirements regarding freezing of terrorist assets thereby strengthening the framework on counter-financing of terrorism. The revised FATF standard is set against the backdrop of assessment of country risks to develop national AML/CFT policies. Recommendation 1 of the FATF Standards requires countries to conduct Money Laundering and Terrorist Financing (ML/TF) risks assessment. A terrorist financing assessment risk is particularly critical in view of the emerging terrorist threats in the region. One of the major steps GIABA has taken, is to convene a typologies workshop on terrorist financing in the region. This typologies workshop, which will be held next this week will assist competent authorities to understand the trends as well as methods employed in TF. The presentations and outcomes at this workshop will definitely add value to countries assessment of TF risk. It is hoped that the typologies workshop will also unearth threats and risks in various countries in the region. This will allow countries to develop national policies and guide the GIABA Secretariat s work in designing further capacity training programmes.
6. GIABA has continued to deliver capacity-building training aimed at strengthening and enhancing counter-financing of terrorism capacities in the region. These capacity building and specialized training programmes delivered at regional, national and institutional levels aim to up-grade the skills of law enforcement agents, security operatives, the FIUs financial analysts and other practitioners and stakeholders. The Secretariat intends to work more closely with development partners on the countering the financing of terrorism aspect of its mandate and GIABA is currently collaborating with UNCTED to organise a series of workshops on implementation of UNSCR 1373. The first in the series of workshops will be held in the West African region for countries in the West African Economic Monetary Union (WAEMU) December, 2012. The workshop will focus on the operational aspects of freezing regimes for member States that have legal frameworks already in place and are having challenges in implementing these requirements. Competent authorities in the region still face difficulties in the implementation of a freezing regime under 1373. It is hoped that the workshop will enhance the capacity of key stakeholders and help GIABA further develop and target areas for future technical assistance to member states. 7. An effective CTF regime requires a legal framework that adequately criminalises terrorist financing and provides for implementation of the UNSCRs 1267 and 1373. These basic requirements must be underpinned by comprehensive Mutual Legal Assistance arrangements. International cooperation is essential for an effective CTF regime as it will allow countries to move quickly to freeze assets as necessary. In this regard, GIABA has been driving the process for the enactment, review and revision of appropriate laws and more member states now have standalone CTF laws and comprehensive MLA arrangements and laws. 8. Establishing and strengthening the FIU is a core aspect of GIABA s mandate. The establishment of an FIU is a key element of AML/CFT and it signals the determination of a country to combat financial and other crimes, and to cooperate with other countries in this regard. The FIU is thus a vital institution for international cooperation. GIABA has worked across the region to establish and strengthen FIUs. GIABA provides varying levels of assistance to FIUs including mentoring on FIU operations which involves hiring a FIU Mentor with extensive experience in the field
of financial intelligence to mentor the staff of the nominated Financial Intelligence Unit in the establishment of operational and policy framework. The mentor also provides training and advice on how to engage other stakeholders who are critical in the effective functioning of the FIU. Likewise, well established FIUs have been adopted to assist other regional FIUs. 9. GIABA is providing a 3 year technical assistant project for the commissioning of AML/CFT Analytical software to 13 member States. The project would equip the FIUs with the necessary Hardware and Software to support the FIUs in carrying out their core mandate in analysing and disseminating STRs and CTRs and enhance the investigation and prosecution of financial and economic crime cases. In order to further develop FIUs and improve co-operation among FIUs in West Africa, GIABA has facilitated the establishment of the West African Financial Intelligence Units (WAFIU). This has improved collaboration and coordination between FIUs in GIABA member States. Several memoranda of understanding have been signed between FIUs in the region and also with their international counterparts. The ultimate goal of all these efforts is to enable all regional FIUs join the Egmont group and thereby strengthen international cooperation. 10. GIABA collaborates and cooperates with regional and international stakeholders concerned with combating the financing terrorism such as the FATF, FRSBS, the IFIs, Egmont Group of FIUs, UNODC and UNCTED and strongly encourages cooperation between member states key stakeholders. The Way Forward 11. Essentially, combating the financing of terrorism requires adequate legal and institutional frameworks. Law enforcement capacity to investigate terrorist financing is particularly crucial. Awareness raising in respect of list of designated persons and enhanced political commitment to the fight against FT will further strengthen efforts to combat terrorist financing. Strategic partnership with the civil society especially at the grassroots, to raise awareness on terrorist financing, its ills and consequences and other early preventive interventions are similarly vital.
12. GIABA will continue with efforts to combating the financing of terrorism by developing legal and institutional frameworks based on international standards including creating and strengthening regulatory and enforcement authorities responsible for developing a network of financial and other intelligence and providing support to financial institutions to enhance internal controls and due diligence procedures that will facilitate detection of TF. GIABA is committed to this process and will strengthen its cooperation with the United Nations in its efforts to make the world safer and more secure for all people.