The domestication of the Proceeds of Crime Law is a critical step in fortifying Nigeria’s legal arsenal against financial crimes.
It is a crucial legal instrument designed to combat financial crimes and money laundering and by ensuring its application at state level, a more adaptive, collaborative, and potent defense against money laundering and illicit financial activities is created.
President Muhammadu Buhari, on May 12, 2022, signed the Proceeds of Crime (PoC) (Recovery and Management) Bill, 2022 (“the Act”) into law.
The Act aims to establish a viable legal and institutional framework for the recovery and management of criminal proceeds.
It is a non-conviction-based procedure for recovering criminal proceeds, it strengthens criminal confiscation procedures, and cooperation among relevant organizations in tracing properties believed to be proceeds of illegal activity.
Background
A “Relevant Organization” is a law enforcement and security agency established under the Act. The Relevant Organization is responsible for enforcing and administering the Act’s requirements.
A relevant organization includes the Economic and Financial Crimes Commission, amongst others and the Attorney General of the Federation may designate from time to time.
The PoC Management Directorate (“the Directorate”) is established in relevant entities by the Act. The Directorate will possess ultimate authority and responsibility for the appropriate and effective management of properties forfeited to the Federal Government of Nigeria, among other things.
Any property taken during an inquiry must be reported to the Directorate within 14 days or as soon as possible for documentation.
Also, any property confiscated after an investigation must be delivered to the Directorate for effective administration within 30 days, subject to distinct Court instructions.
Section 7 of the act provides for Non-Conviction-Based recovery of crime proceeds.
It allows for the recovery and forfeiture of abandoned or unclaimed property that is reasonably suspected to be the proceeds of illegal activity without conviction
Recovery of Cash
Section 26 (2) (a) of the Act empowers an authorized officer to confiscate and freeze any cash in the process of being transported within or outside Nigeria.
This is subject to the provision that the officer has sufficient evidence to think that it comprises the proceeds of illegal activity or is meant to be used as a tool of an offence.
Cash contains any currency’s notes and coins, as well as any type of cheque, including traveller’s cheques, jewellery, and gold.
An officer of the Nigerian Immigration Service, Nigerian Customs Service, the National Drug Law Enforcement Agency, or the Nigerian Police Force, is a Designated Officer.
Under section 68 of the Act, an account specifically known as the Confiscated and Forfeited Properties Account is established to be held at the Central Bank of Nigeria.
Any money gained from the sale,management, or other form of disposal of forfeited assets must be deposited into the Confiscated and Forfeited Properties Account.
The Confiscated and Forfeited Properties Account will be maintained by the head of the appropriate organisation, who will be accountable to the Minister of Finance for reporting.
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Why States Need to Domesticate the Law – Expert
In an interview with The Jurist, Dr Uche Emmanuel, the Program Director at Rule of Law and Anti-Corruption (ROLAC II) emphasised the need for states in Nigeria to domesticate the PoC law.
According to him, every state that is well-meaning to its citizenry, need to pass the PoC law for corrupt individuals and criminals in society do not have a filled day enjoying the proceeds of their crime and criminality.
He emphasized that the law is more important to the common man on the street because corruption is the only crime where the perpetrator and their accomplice are beneficiaries while the victims bear the brunt of such corrupt practices.
He said “If the PoC law is domesticated across states in Nigeria when the proceeds of crimes are recovered, it is pumped back into the society and can be utilized for quality healthcare, education, and Human Capital Development amongst others.
“The Nigerian Judiciary which is supposed to be the hope of the common man has become compromised and this is evident across states in the country.
“However, with the PoC law, the system will be able to go after those criminals that have stolen the commonwealth of the country,” Dr Emmanuel said.
He pointed out that depending on the domestication across states, the PoC law can;
- Public interest disclosure and witness protection, for the people to speak up against corrupt practices which they witness.
- It can put in place a regime of non-conviction-based asset forfeiture in the aspect of unexplained wealth orders.
- Ensure that there is a dedicated agency that will properly manage/utilize all the proceeds that are recovered from criminals to the benefit of the citizens.
What you should know
- The Proceeds of Crime Law, enacted at the federal level, empowers law enforcement agencies to investigate and confiscate assets derived from criminal activities.
- It serves as a deterrent to criminals by targeting the financial gains associated with their illegal actions. However, the impact of this law is limited if not uniformly implemented across all states.
- Currently, the implementation of the Law is centralized, which poses challenges in effectively curbing financial crimes.
- States lack the autonomy to tailor the application of the law to address specific regional concerns and emerging trends in criminal activities.
- Domesticating the Law across states will promote uniformity in its application. This consistency is vital for creating a seamless legal framework that facilitates collaboration among law enforcement agencies at both federal and state levels.
- It also enhances the ability to track and counter criminal enterprises that often operate across borders.
- A uniform application of the Proceeds of Crime Law at the state level streamlines legal processes and ensures a more efficient judicial system. This not only expedites the adjudication of cases related to financial crimes but also discourages criminals by creating a robust legal environment.
- Different states face varying challenges in terms of the types of financial crimes prevalent within their jurisdictions. Domestication allows states to customize the implementation of the law to address specific regional challenges effectively. This targeted approach is essential for staying ahead of evolving criminal tactics.