Effectiveness of Nigeria's Financial System for Prevention of Money Laundering

Financial institutions are the catalyst for growth and development. They provide efficient payment system and facilitate the implementation of monetary policies. However they are more vulnerable to money laundering incidences than any other sector or subsector of the economy. The vulnerability of financial institutions is as a result of lack of due diligence which compromises their integrity, poor regulatory and supervisory framework and insider abuse, among others. Financial institutions should operate in a crime-free environment. They should be aware of the danger of doing business with money launderers and should guard against being used as conduits for money laundering. The international community and national agencies have recognized the need for soundness and stability of the financial system by reacting to money laundering as a global problem. An effective anti-money laundering, therefore, requires that certain structural elements and general framework be in place, lack of which may significantly impair the implementation of effective anti-money laundering framework