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US Ranked World’s Most Secretive Financial Jurisdiction for Illegal Money

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By Derrick Bangura

The United States of America (US) has emerged the most secretive financial jurisdiction to hide illegal money in the world, according to the 2022 Financial Secrecy Index (FSI), a comprehensive study from the Tax Justice Network.

Other countries in the top five included Switzerland, Singapore, Hong Kong and Luxembourg, according to FACT Coalition’s FSI report.
The US ranking is deteriorating from prior Financial Secrecy Indices, in part due to unaddressed loopholes and lax rules in the country’s anti-money laundering and tax laws, it stated.
Its emergence as the world’s top destination of illegal money came on the heels of the recent declaration by the global financial watchdog, the Financial Action Task Force (FATF) that it would assess its member countries more frequently to assist them further in tackling money-laundering and combating terrorism financing.

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The US emerged top on the list even as it continued to implement sanctions on Russia and some of its wealthiest elite following Russia’s invasion of Ukraine.
While it is collaborating with governments around the world to locate and freeze Russian oligarch assets, this task is made more difficult by existing systems of financial secrecy that allow people, including kleptocrats and criminals, to hide their financial assets from authorities and investigators.

It is not clear how much money is illegally hidden in the US, although the Treasury Department had estimated around two per cent of the nation’s gross domestic product (GDP)- about $480 billion was hidden, according to CBS News.

The process of setting up a shell corporation, a corporation without active business operations or significant assets in the US is an easier process than getting a library card due to applicants not needing to verify their identity, a terrorist-financing expert at Washington think tank Global Financial Integrity, Lakshmi Kumar said.

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The US was identified as the second most secretive country for hiding money in 2020. Later in the year, Congress passed the Corporate Transparency Act, requiring corporations and companies to report who owns the corporations and companies to a central directory maintained by the Financial Crimes Enforcement Network at the Treasury Department.

Commenting on the new FSI report, the Executive Director of the FACT Coalition, Ian Gary said: “At a time when the world is being confronted by the very real and tragic consequences of enabling global corruption, these findings point the finger at U.S. secrecy and should be a rallying cry for financial transparency.

“The Biden administration has already committed to making a number of necessary anti-corruption reforms to make sanctions more effective and to close the U.S. financial system to corrupt and criminal actors whose actions are destabilising global markets and democratic institutions.

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“This ranking underscores that while the U.S. is joining with global governments to locate and freeze Russian oligarch assets, kleptocrats and criminals are still able to hide and grow their financial assets with relative ease in the U.S.

“Enforcing sanctions is difficult when we don’t have the tools necessary to know how and where oligarchs are invested in the United States.”
“The U.S. simply cannot afford to slide backwards in the fight for financial transparency.

“To fight corruption, we need to implement the Corporate Transparency Act, and to implement the Corporate Transparency Act, we need to fully fund FinCEN now,”said Congresswoman, Carolyn B. Maloney, the co-author of the CTA.

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Financial secrecy undermines national security, democracy and the rule of law globally, while enabling tax avoidance and evasion which robs governments of resources they need to fight inequality and address the climate crisis.

The 2022 FSI highlights other reforms necessary to assist with sanctions enforcement and to reduce the US role as a haven to hide and grow ill-gotten or other illicit financial gains. These include, among others: “Bringing greater transparency to the $50 trillion US real estate market; engaging in more reciprocal automatic information exchange of financial account information for tax purposes and sharing the very information that the US has required from foreign financial institutions since 2014; introducing consistent anti-money laundering due diligence and reporting requirements to the $11 trillion dollar U.S. private investment fund industry,” among others.

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Headlines

NNPC Foundation Trains Over 3,000 Southwest Farmers in Climate-Smart Agriculture

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In a bid to promote food security and sustainable agricultural practices, the NNPC Foundation has successfully trained more than 3,000 farmers in the South-West geopolitical zone on climate-smart and modern farming techniques.

The training, which concluded on Friday in Ikorodu, Lagos, marked the end of the Southwest phase of the foundation’s pilot programme aimed at empowering local farmers and boosting agro-productivity.

Speaking at the closing ceremony, Managing Director of the NNPC Foundation, Mrs. Emmanuella Arukwe, described the initiative as a milestone in the lives of thousands of farmers.

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“Today marks the formal conclusion of the first phase of a national journey that speaks to resilience, food security, and economic empowerment,” Arukwe said.
“What began as a bold decision to support small holder farmers has translated into tangible action across three geopolitical zones (South-East, South-South, and South-West) in Southern Nigeria.”

She disclosed that a total of 3,860 vulnerable farmers across 10 locations in the three regions were trained in sustainable farming practices that improve productivity and market access.

“This achievement is not just a number, but a milestone in the lives of real people and real communities. We were able to strengthen farmers’ capacity to adapt to climate change,” she added.
“Through the training, we were able to improve access to markets, promote inclusive agriculture and especially gender representation. We also trained them on enhancing food production through sustainable techniques.”

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Arukwe noted that the programme would now move to the North-West, North-Central, and North-East zones as part of its next phase, saying the foundation is committed to supporting livelihoods nationwide.

“This is only Phase One. We will now turn our focus to the North-West, North-Central, and North-East zones. What we have achieved in the South will inform and strengthen our next steps,” she said.
“The NNPC Foundation will continue this mission, to support livelihoods, build resilience, and empower the hands that feed our families and beyond.
We have decided that most times you get a lot of requests from people asking us to give them palliatives and all kinds of things to help them.
But we think it is much better to teach people to fish than just give them fish so they can continue,” Arukwe explained.

Chairman of Ikorodu Local Government, Mr. Wasiu Adesina, while commending the initiative, urged the beneficiaries to apply the knowledge gained to boost productivity and profitability.

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“As we all know, agriculture is the bedrock of any nation. Without agriculture, there will not be a nation, because there will be no food to eat,” Adesina stated.
“It is the farmers that produce our food, and it is important that we train our farmers with new techniques in agriculture, and that is exactly what the NNPC Foundation is doing.

“To the farmers, you have to take advantage of this training and face the farming squarely. In some great countries like the United States and the United Kingdom, farmers are the most richest people in those countries.

“This is because they make a lot of money from farming. We need to inculcate that habit in Nigeria and develop ideas in farming. Even after my tenure, I am going back to farming, so, maybe I will ask the NNPC Foundation to train me so that I also join you to be a farmer.”

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He appealed to the foundation to provide further empowerment for the trained farmers to help them kickstart their agricultural ventures.

“If the farmers have land for farming, I believe the foundation will provide financial aid to keep their farms running,” Adesina added.

Also speaking at the event, the Lagos State Commissioner for Agriculture and Food Systems, Ms. Abisola Olusanya, represented by the Director of Fisheries, Mrs. Osunkoya Daisi, lauded the Foundation’s efforts in bolstering the state’s food security.

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“On behalf of the Lagos State Government, we would like to express our sincere appreciation to NNPC Foundation for training our farmers and for training all the farmers all over the country,” she said.
“Definitely, the training will help improve food production. We can see the impact of climate change effects in agriculture. I am sure farmers have been equipped with climate-smart agriculture techniques to improve production.”

The NNPC Foundation Ltd/Gte is the Corporate Social Responsibility (CSR) arm of the Nigerian National Petroleum Company (NNPC) Limited. It was incorporated in February 2023 to manage the company’s CSR initiatives and enhance Nigeria’s socio-economic development.

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Education

NUC grants ESUT full accreditation for Law, 7 other programmes

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The National Universities Commission, (NUC), has given full accreditation to the Enugu State University of Science and Technology (ESUT), for her Law programme.

According to the Public Relations Officer of ESUT, Mr Ikechukwu Ani, this is contained in a letter addressed to the institution’s Vice Chancellor, Prof. Aloysius Okolie, on Wednesday in Enugu by the NUC.

Ani said that in the letter, the Executive Secretary of NUC, Prof. Abdullahi Ribadu said the report was contained in the result of the October/November 2024 accreditation of academic programmes in Nigerian universities.

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Ani disclosed that other programmes in the institution accredited by the NUC include Master of Science in Business Management; Education Computer Science; Education Physics and Agricultural Engineering.

Other accredited programmes he said were Quantity Surveying; Urban and Regional Planning; and Applied Microbiology.

He said that the letter quoted Section 10 (1) of the Education National Minimum Standard and Establishment of Institutions, Act CAP E3, Laws of the Federation of Nigeria 2004 as empowering the NUC to lay down minimum academic standards for all academic programmes taught in Nigerian universities.

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He said the session also empowers the NUC to accredit such programmes.

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Crime

Court remands 2 over alleged attempted murder

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Court discharges man accused of burning father’s house in Abuja

An Ikeja Magistrates’ Court, Lagos, on Wednesday, remanded two persons, Olaitan Fasasi and Kehinde Tobiloba in a correctional facility over alleged attempted murder.

Fasasi, 40, and Tobiloba, 26, whose addresses were not provided, are being charged with conspiracy, attempted murder and membership of a secret society.

The Magistrate, Mr L.A Owolabi, did not take the plea of the defendants for want of jurisdiction.

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Owolabi directed the police to forward the case file to the Director of Public Prosecution for legal advice.

He thereafter adjourned the case until May 31 for mention.

The Prosecutor, Josephine Ikhayere, told the court that the defendants committed the offences at about 5.02p.m on Feb. 15, at Mushin, Lagos.

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She said that Fasasi, Tobiloba and others now at large, attempted to commit murder by shooting at a resident, Alfred Ademola.

“They armed themselves with a locally made gun. They belong to Eiye Confraternity, a group proscribed by law,”, she said.

Ikhayere said that the offences contravened Sections 230(1) and 411 of the Criminal Law of Lagos State, 2012.

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He said that the actions of the defendants also contravened Section 2(3)(a)(b)(c)(d) of the unlawful societies and Cultism Law of Lagos State Law.

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