[size=14pt]Global Witness: UK aiding corruption in Nigeria[/size]

From Paul Obi in Abuja , 12.22.2010

Thursday, December 23, 2010

The British authorities are not doing enough to stop the flow of corrupt money into the United Kingdom (UK) from Nigeria, says Global Witness, an anti-corruption non-governmental organisation (NGO).

http://odili.net/news/source/2010/dec/23/212.html


In an exclusive interview with THISDAY in Abuja, Founder of the organisation Anthea Lawson and her colleague Robert Palmer expressed disgust at the way British and Western banks facilitate corruption in countries such as Nigeria.

They indicated that it would appear on the surface that the UK is "clean".

But their investigations suggest that the actual enforcement of rules and regulations on money laundering leave much to be desired. Lawson asked the David Cameroon government to rein in on banks that receive corrupt deposits.

Her words: "We want to emphasize that British banks and regulators are not doing enough to tackle money laundering. There is need for a global effort to effectively enforce the laws which are designed to stop the flow of dirty money, whether it is in corruption, tax evasion or organised crime or even money for funding terrorism."

Global Witness had in October this year published a damning report on how major British banks received stolen money from influential Nigerians.

The ways through which former Governors of Bayelsa and Plateau States Dieprieye Alamieyeseigha and Joshua Dariye respectively laundered ill gotten wealth were uncovered.

"Apart from the banks, the British government is supposed to be involved in strengthening laws, enforcing it so that we can stop this," stated Lawson.

"The challenge to the David Cameron government is to push the regulator in the UK, the Financial Services Authority (FSA), to make a really serious effort to punish those banks who are taking corrupt funds.

The reason banks think this is ok is because there has not been deterrence," she added.

Although, efforts have been made to improve the British system, however, the reality is that day after day, there are new cases of stolen money flowing into the country, Palmer stated.

He said due diligence should be a priority for financial institutions; sources of funds have to be verified; and if they are questionable, they should be reported to the authorities.

Lawson recalled that some 23 banks that were reported by the FSA to have engaged in such practices were not publicly reprimanded. A few years later, the same banks were featured in the Global Witness report on corruption.

She cited the example of the United States (US) where companies are fined heavily, if found to have breached the anti-money laundering laws. That aggressive approach also indicates the priority of the government there, she noted.

"If you look at the US, the authority may have been willing to fine banks huge amounts, hundreds of millions of dollars, it is something which is a priority, so I think it is about the political will," she stated.

Lawson went on to say that the NGO is is trying to change the perception that Western countries are clean. She explained that establishing the link between poverty in developing countries and the actions of institutions in the developed world is paramount.

She explained that the UK gives away development grants to developing countries but turns around to undermine that effort by aiding corruption across borders. That is inconsistent, she emphasised.

Part of the job of Global Witness, Lawson argued, is to make bankers in the UK see how their actions impoverish people in other parts of the world. In order to create a just and fair world, all countries must co-operate in the area of fighting money laundering, she said.

When reminded that politicians would always find safe havens elsewhere, Palmer said the plan is to make it more difficult to launder money worldwide.

"We hope that the space will get smaller and smaller," he said. While corruption may not be wiped out completely, excesses can be curbed, Lawson added.