Legal Perspectives on the Nigerian Anti-Money-Laundering Regime: Spotlight on Politically Exposed Persons

Over the past decades, there has been an increased focus on politically exposed persons (PEPs), and through egregious examples, their ability to embezzle huge sums of public funds from Nigeria, which is subsequently laundered domestically or internationally through financial institutions and other methods adopted in laundering the proceeds of grand corruption. The colossal scale of grand corruption, money laundering and the number of PEPs involved in the outright misappropriation, conversion, diversion, and theft of public funds in Nigeria is staggering. Grand corruption and money laundering are for Nigeria, a pervasive and devastating socioeconomic and political problem. This is due to the fact that a significant number of Nigeria’s pressing concerns such as underdevelopment, slow economic growth, abject poverty, insecurity, and poor health care systems have all been exacerbated and prolonged by grand corruption through the misappropriation and embezzlement and of public funds.

The link between PEPs, corruption and money laundering is well established. This has prompted the promulgation of laws and regulations, the creation of institutions and the formulation of policies aimed at combating this phenomenon in Nigeria. Yet, addressing the serious challenges of grand corruption and money laundering remains an acute challenge for Nigeria. Constraining, disrupting, and deterring PEPs from misappropriating and laundering public funds is fundamental for Nigeria’s development. The continued search for effective solutions to the problem of grand corruption and money laundering is the catalyst for this book.

Thus, drawing from several research methodologies such as doctrinal, socio-legal, comparative and qualitative approaches (interviews), this study was undertaken to thoroughly assess the effectiveness of the Nigerian anti-money-laundering (AML), legal, regulatory and institutional frameworks for combating the laundering of the proceeds of corruption by PEPs, and to assess their practical implementation. Considering the significant political and economic influence wielded by PEPs by virtue of their access to state resources and influence over government institutions, this study, inter alia, explores the political, constitutional, and legal challenges that impedes the implementation of AML laws on PEPs in Nigeria.