Money Laundering and Terrorism Financing: Assessing Exposure Risks Across Non-Financial Institutions in Nigeria

Abstract

Money laundering and terrorism financing in Nigeria have far-reaching social and political consequences. The illicit activities associated with money laundering, such as drug trafficking and terrorist financing, contribute to increased crime rates and violence. This poses a significant threat to public safety and security. Moreover, the success of money laundering activities erodes the integrity of society and undermines democracy and the rule of law. The Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulation, including other related regulations, guides financial institutions and other reporting entities on their obligations to prevent and detect money laundering activities. These regulations outline the requirements for customer due diligence, reporting obligations, and record-keeping. Non-compliance with these regulations can result in legal and regulatory consequences for financial and non-financial institutions, not excluding legal practitioners in Nigeria, including the risk of exposure to reputational damage and loss of operating licenses.