Why european commission included nigeria among 23 dirty money blacklist

The European Commission's decision to include Nigeria on its list of high-risk third countries with strategic deficiencies in their anti-money laundering (AML) and combating the financing of terrorism (CFT) regimes is based on several factors. Here are some reasons why Nigeria was included on the list:

1. Weak AML/CFT framework: Nigeria's AML/CFT framework is considered weak, with inadequate laws, regulations, and implementing procedures in place. The country's financial sector is also characterized by a lack of transparency and a high level of corruption.
2. Lack of effective supervision: The Nigerian financial sector is not effectively supervised, which allows for the proliferation of illegal activities, such as money laundering and terrorist financing.
3. Inadequate reporting and record-keeping: Nigerian financial institutions are not required to maintain adequate records of transactions, making it difficult to track and trace suspicious transactions.
4. Corruption: Corruption is widespread in Nigeria, which creates an environment conducive to money laundering and terrorist financing.
5. Lack of cooperation: Nigeria has not been cooperative with international efforts to combat money laundering and terrorist financing, including the Financial Action Task Force (FATF).
6. Inadequate implementation of UN sanctions: Nigeria has not effectively implemented UN sanctions against designated individuals and entities, which has allowed for the proliferation of illegal activities.
7. Weak customer due diligence: Nigerian financial institutions do not conduct adequate customer due diligence, which makes it difficult to identify and prevent money laundering and terrorist financing.
8. Inadequate monitoring of cash transactions: Nigeria does not have an effective system in place to monitor cash transactions, which makes it difficult to track and trace suspicious transactions.
9. Lack of resources: Nigeria's financial sector lacks the necessary resources, including trained personnel and adequate technology, to effectively combat money laundering and terrorist financing.
10. Inadequate international cooperation: Nigeria has not been cooperative with international efforts to combat money laundering and terrorist financing, including the sharing of information and cooperation with other countries.

The European Commission's decision to include Nigeria on the list is intended to encourage the country to take concrete steps to address these deficiencies and improve its AML/CFT regime. The inclusion on the list also means that European financial institutions will be required to apply enhanced due diligence measures when dealing with Nigerian counterparties, which can have significant implications for Nigerian businesses and individuals seeking to do business with European partners.