VZCZCXRO9900
RR RUEHMA RUEHPA
DE RUEHUJA #2902/01 3091611
ZNR UUUUU ZZH
R 051611Z NOV 06
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC 7696
INFO RUEHOS/AMCONSUL LAGOS 5451
RUEHZK/ECOWAS COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 02 ABUJA 002902 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE PASS TO USTR FOR C. HAMILTON 
TREASURY FOR LUKAS KOHLER/DAN PETERS 
USDOC FOR 3317/ITA/OA/KBURRESS 
USDOC FOR 3130/USFC/OIO/ANESA/DHARRIS 
 
E.O. 12958: N/A 
TAGS: EFIN ECON ASEC KCRM PTER NI
SUBJECT: ASSESSMENT OF NFIU FOR EGMONT GROUP ADMISSION 
 
 
¶1.  (U) Summary: A representative from the U.S. Treasury's Financial 
Crimes Enforcement Network (FINCEN) unit conducted a positive 
assessment of Nigeria's Financial Intelligence Unit (NFIU) for 
membership in the Egmont Group at the next plenary session for 2007. 
 The assessment went well and the USG along with the Bahamas and 
Mauritius will sponsor NFIU membership in the Egmont Group. 
Nigerian officials are open to more engagement and training from the 
USG.  End Summary. 
 
Egmont Group 
------------ 
 
¶2.  (U) The Egmont Group is an informal grouping of FIU's that 
cooperate in information exchange, training, and sharing of 
expertise in anti-money laundering and combating the financing of 
terrorism (AML/CFT).  Its goal is to provide a forum for FIU's 
around the world to fight money laundering, terrorist financing and 
other financial crimes.  For the NFIU to join the group it must 
undergo an assessment by a supporting or sponsoring FIU. 
 
Where Does Nigeria Stand? 
------------------------- 
 
¶3.  (U) FINCEN belongs to the Egmont Group and is one of the NFIU's 
sponsors along with the Bahamas FIU and the Mauritius FIU.  From 
October 16-19, Jerry Crawford, financial analyst at FINCEN, 
conducted an assessment of Nigeria's Financial Intelligence Unit 
(NFIU) for membership in the Egmont Group at the next plenary 
session for 2007.  Nigeria had already passed the initial assessment 
which consisted of having money laundering and terrorism financing 
legislation in place and enforceable, an operational FIU, 
willingness to join the Egmont Group and the possibility of 
exchanging information with other FIU's. 
 
¶4. (SBU) Crawford completed an assessment after meeting private 
banks, financial institutions and Government of Nigeria (GON) 
regulatory agencies.  Crawford's analysis found that the NFIU had 
done a considerable amount of work in educating these institutions 
on compliance and reporting in the areas of AML/CFT.  An assessment 
was also done of the NFIU to determine their capacity in the area of 
AML/CFT.  This consisted of discussions with key staff, a review and 
critique of their organizational structure and work flow, as well as 
a physical inspection of their facilities. 
 
Next Steps 
---------- 
 
¶5.  (SBU) FINCEN will submit a report by mid November to the Egmont 
Group's Outreach Working Group (OWG).  The OWG will review and make 
a recommendation to the Legal Working Group (LWG).  The LWG makes 
the final assessment to ensure that the NFIU's fulfills and meets 
the requirements for Egmont admission.  Some of the requirements are 
that the FIU be fully operational, is legally capable and willing to 
cooperate on information exchange, and has a sponsoring Egmont FIU, 
all of which the NFIU satisfies.  If the NFIU is admitted it will be 
announced at the next plenary session of the Egmont Group in March 
¶2007.  Crawford opined that the assessment went very well and he did 
not see any reason why the NFIU would not be admitted.  The only 
area of concern could be denial for political reasons, which would 
have nothing to do with NFIU's ability to investigate and prosecute 
AML/CFT cases. 
 
NFIU - Positive Progress 
------------------------ 
 
¶6.  (SBU) COMMENT: The benefits from membership are enormous for 
Nigeria and would enhance the NFIU's law enforcement efforts 
globally by providing them another source of foreign intelligence 
that may be critical to their investigations.  During this 
assessment we were able to see remarkable results in the NFIU from 
FINCEN training.  The NFIU has done a good job in training the local 
banking and financial institutions on how to recognize and report 
suspicious transactions.  This is in conjunction with legislation 
passed for AML/CTF as well as Central Bank regulations.  Since 2005 
the NFIU have had over 80 convictions, because of FINCEN training. 
The NFIU have and continue to be very appreciative of FINCEN and is 
interested in additional training in the areas of typologies and 
methodologies.  This would include developing their analytical 
skills as well as on the ground mentoring of NFIU staff to better 
evaluate cases.  There are also a number of government organizations 
that have expressed a willingness to take advantage of FINCEN's 
training, including the Federal Inland Revenue Service, the 
Securities and Exchange Commission, and the Nigeria Deposit 
Insurance Commission.  In this area, Nigerians are eager for 
dialogue and U.S. agencies interested should build on this openness. 
 
ABUJA 00002902  002 OF 002 
 
 
 END COMMENT. 
 
CAMPBELL