Reps move to compel Nigerians to prove suspicious assets

From Ndubuisi Orji, Abuja

The House of Representatives has passed, for second reading, a bill seeking to compel Nigerians suspected of living above their means to prove the source of their wealth.

The proposed legislation, which is seeking to amend the Money Laundering Prevention and Prohibition Act 2022, is also proposing the recovery of questionable assets through a non-conviction mechanism.

The sponsor of the bill, Yusuf Gagdi, in his lead debate, said an amendment to the extant act is imperative to strengthen the fight against corrupt practices, including illicit financial flows.

Gagdi explained that despite the robust framework provided by the extant law, significant proceeds of crime still find their way into the financial and property system through sophisticated means.

Consequently, he argued that there was need to strengthen the existing anti-money laundering legal framework, with the introduction of a civil recovery mechanism, to provide for the recovery of unexplained wealth through non-conviction basis proceedings.

According to him, “While the current act provides for criminal prosecution for forfeiture of assets derived from illicit sources, it places a high evidential burden on law enforcement agencies that often frustrate timely recovery of stolen assets.

“It is a known fact that many individuals, Mr Speaker, who cannot justify their assets, continue to live lavishly, sometimes beyond the reach of criminal prosecution due to evidential difficulties, technicalities and deliberate delays.

“This bill therefore fills an important gap by introducing civil forfeiture as a complementary tool to criminal prosecution under the system, so as to shift the burden of proof to individuals in possession of questionable wealth to explain the lawful origin of such an asset.”

Gagdi explained that the bill, if passed into law, would empower relevant agencies, including the Economic and Financial Crimes Commission (EFCC), to obtain ex parte restraining orders, from a High Court, on assets deemed to be inconsistent with a person’s known legitimate income.

The lawmaker, who noted that the mechanism has proven to be effective in checking corruption in other jurisdictions, including the United Kingdom, Kenya and South Africa, said “this bill is not a witch-hunt tool; rather it is a preventive and corrective measure designed to promote transparency, integrity and accountability in both public and private life.”

He added “by passing this bill, Mr Speaker, we will be sending a clear message that Nigeria is committed to global best practices in combating money laundering and illicit financial flows. It will enhance our reputation among our international partners, improve asset recovery efforts and strengthen public confidence in our corruption institutions.”