Abstract
Efforts to tackle money laundering are consistently being intensified, evidenced by modified
systems and controls, the adaptation of legislation and the improved processes for
implementation of international best practice globally. The abundance of regulation and
standards notwithstanding, money laundering offences persist, putting international business
relationships, financial systems and the global economy at risk. Developing and lower income
countries are generally found to have more difficulty complying with international money
laundering standards.
This thesis examines and determines the efficacy of domestic measures for curbing money
laundering, specifically focusing on Nigerian financial institutions, to ascertain and define
limitations in complying with the global anti-money laundering framework. The focus on
Nigeria is because of the prominent position it occupies in Africa, in terms of productivity,
population and economic prospects (including trade links) and as a ‘MINT’ nation. Nigeria has
a huge potential for both economic growth and internal development which has been
hindered in part by a narrative of its financial system being porous and, therefore,
inadvertently one which could taint the global financial system. The inadequacies which exist
remain, despite robust laws and policies designed to put the national standards at par with
the global standards many countries adopt.
The thesis utilises a qualitative study consisting of interviews and focus group sessions to
examine and evaluate the role and impact of underlying social dynamics and ideologies in
either facilitating or inhibiting effective enforcement. The study has identified the need to
focus on improving technological infrastructure, human capacity development and a cultural
shift to support the existing legal framework in Nigeria. It draws on the findings from its
indepth examination through qualitative fieldwork to suggest that more effort should be put
into grassroot education, cohesive and stricter enforcement and professional training in order
to create a wholistic structure to assist with achieving soundness in the country’s financial
sector. This thesis contributes to the body of work which explores the global financial system
in the context of mandated compliance by concluding that effectiveness can only be
adequately measured by moving from absolute compliance as a tick-box to innovative
approaches to managing controls. Establishing and maintaining foundations and structures
around institutions should be deemed more crucial than merely evidencing compliance.