MONEY LAUNDERING AND NATIONAL DEVELOPMENT: ISSUES AND PROSPECTS

ABSTRACT

The over-riding aim of this research work is to examine money laundering and national development: issues and prospects, a case study of EFCC, ICPC and Fraud Unit of Nigeria Police. The problem of money laundering in Nigeria has persisted even with the establishment of statutory institution to check and control its menace. Unfortunately, these institution has not served better. Nigeria had expected that the institutions will do achieve government objectives with the failure of those institutions. To effectively carry out this research, the research design used was survey method. Data was collected in form of questionnaire from respondents who are staff of EFCC, ICPC and Fraud Unit of Nigeria Police. (120) one hundred and twenty questionnaire were administered, (107) one hundred and seven copies were returned and (100) hundred copies are used. After critical analysis of the data collected, findings revealed that money laundering and national development: issues and prospects cannot be over emphasized in reducing the rate of money laundering in the Nigerian economy. The study identified some forms of money laundering include includes bank methods, smurfing (also known as structuring), currency exchanges, and double-invoicing were extensively discussed. The roles of financial institutions in anti-money laundering are to verify a customer's identity which often termed as "Know Your Customer" through his/her passports and if necessary, monitor transactions for suspicious activity. The effect of money laundering on economic development reduces productivity in the economy's real sector by diverting resources and encouraging crime and corruption, which slow economic growth and distort external economic sector. The benefits of an effective Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) are to control of financial crimes, enhanced stability of financial institutions and encouraging national development. To achieve the study, the researcher identified some challenges which militated against effective anti-money laundering control in Nigeria. These includes the lack of effective control by the institution, judicial ineffectiveness, lack of appropriate punishment to culprits and inconclusive report that negates prosecution.

Keywords: Concealment, Economy, National Development, Money Laundering and Policy.

TABLE OF CONTENTS

Title     Page

DeclarationI

CertificationII

DedicationIII

AcknowledgementIV

Abstract V

Table of ContentVI

CHAPTER ONE

Background to the Study1

Statement of the Research Problem3

1.3Research Questions4

1.4Research Hypothesis4

1.5Objectives of the Study4

1.6Significance of the Study5

1.7Scope and Limitations of the Study5

1.8Definition of Terms5

CHAPTER TWO

LITERATURE REVIEW AND THEORETICAL FRAMEWORK

2.1Preamble7

2.2Review of Related Literature7

2.3Theoretical Framework of the Study8

2.3.1Theory X and Theory Y8

2.4.1Forms of money laundering10

2.4.2Issues Involved in Money Laundering and National Development12

2.4.3Historical Background of money laundering12

2.4.4Challenges of Militating Against the Control of Money Laundering13

2.4.5The roles of financial institution in anti-money policies13

2.4.6The implications of money laundering in Nigeria economy14

2.4.7The benefits of effective AML and CFT framework16

2.3.6International Response against money laundering18

CHAPTER THREE

RESEARCH METHODOLOGY

3.1Preamble22

3.2Research Design22

Sources of Data Collections22

Population of the Study22

Sampling Size 23

Sampling Techniques23

Data Collection Instrument24

3.8Administration of Data Collection Instrument24

3.9Validation and Reliability of Instruments24

3.10Method of Data Analysis25

3.11Limitation of the Study26

CHAPTER FOUR

DATA ANALYSIS PRESENTATION

4.1Preamble27

Analysis of Respondents’ Characteristics and Classifications27

Analysis of Individual Research Statement29

Test of Hypothesis37

Discussion of the Findings46

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1Summary of the Findings45

5.2Conclusion 46

5.3Recommendations46

5.4Suggestion for Further Study47

References58

Appendix