ANTI-MONEY LAUNDERING IN THE DIGITAL AGE: A CASE STUDY OF NIGERIA

AML in Nigeria’s Digital Age

Abstract

This paper examines money laundering in Nigeria in general, conceptualising it and identifying the gaps in the legal framework designed to tackle this menace. Special focus is given to using the digital platforms to carry out money laundering in Nigeria and the challenges created through these platforms in combating or preventing it. The emergence of digital innovation and technology has a big impact on money laundering in Nigeria. Because digital currencies are virtual and therefore outside the authority of any one state, they are especially useful for the layering step of money laundering. This makes it possible to convert between various cryptocurrencies and fiat currencies, send money internationally without difficulty, and make trading and investing activities easier. Financial criminals can move money across borders until the link to the initial crime is effectively broken by using cryptocurrencies to effectively hide the origin of their unlawful funds. The regulatory developments in the wake of cyber laundering in Nigeria is considered. In the end suggestions for reforms are made, which include enhanced legal and regulatory frameworks, strengthening international cooperation, investment in technological solutions, and encouragement of responsible innovations, among others.