CAC stories 248 faux firms to EFCC, tackles banks

The Registrar-Common of the Company Affairs Fee, Hussaini Magaji (SAN), has accused some banks and monetary establishments of undermining Nigeria’s anti-corruption and compliance framework by permitting inactive and non-compliant firms to proceed working and transacting freely.

Magaji additionally disclosed that the fee reported 248 faux firm registrations to the Financial and Monetary Crimes Fee for investigation and prosecution, whereas three CAC workers members have been handed over to the Unbiased Corrupt Practices and Different Associated Offences Fee (ICPC) over alleged inner misconduct.

The CAC boss made these disclosures on Tuesday in Abuja throughout an Anti-Corruption Day presentation and panel dialogue held as a part of actions marking the fee’s thirty fifth anniversary. He spoke on the subject, “Transparency for Improvement: The Nigeria Expertise.”

Talking earlier than representatives of key anti-corruption and law-enforcement businesses, Magaji warned that Nigeria’s company regulatory system would stay weak until all establishments enforced compliance uniformly.

“Let me state clearly: at CAC in the present day, no firm with out full disclosure of its Individuals with Vital Management is recognised as compliant. Firms that fail to reveal their PSC are flagged as inactive, and such standing renders them unfit for credible transactions,” he mentioned.

Nonetheless, he expressed concern that this regulatory sanction was being routinely ignored by some monetary establishments.

“Nonetheless, we face a critical problem. Whereas CAC could flag such firms as inactive, some monetary establishments, notably banks, proceed to permit these inactive firms to function, open accounts, and transact freely. This can be a main weak spot in our nationwide compliance chain. We should be part of palms to cease it,” Magaji added.

In response to him, Nigeria’s regulatory ecosystem should communicate with one voice, stressing that non-compliant firms shouldn’t benefit from the privileges of legality. “If an organization is non-compliant, it should not benefit from the privileges of legality. Our collective success depends upon imposing this precept throughout the board,” he mentioned.

To deepen compliance, Magaji mentioned the Fee had taken decisive steps to scrub up its inner processes and show zero tolerance for corruption.

“Within the yr below evaluation, I had trigger to give up three members of workers to the ICPC for alleged misconduct involving suspicious and unauthorised tampering with firm information. This was finished to remove the probabilities of compromise and strengthen integrity inside our processes,” he mentioned.

He additional revealed that 248 faux firm registrations have been found to have been illegally inserted into the CAC system and subsequently reported to the EFCC.

“Inside the similar interval, I submitted to the EFCC an inventory of 248 faux firm registrations illegally inserted into our system by means of illegal means, for investigation and prosecution,” Magaji disclosed.

In response to him, the entities operated with out traceable company identities and did not contribute to nationwide income by means of taxation. An extra 15 such entities have been additionally submitted for additional investigation.

“Notably, regardless of these actions, no reliable authorized problem has been introduced in opposition to CAC relating to the elimination and reporting of those unlawful registrations,” he mentioned.

The CAC Registrar-Common additionally renewed requires the institution of a single, harmonised nationwide register for useful possession info, warning that Nigeria’s present fragmented system created loopholes that may very well be exploited for corruption, cash laundering, and illicit monetary flows.

He famous that whereas Nigeria had made progress in useful possession transparency, a number of sector-specific registers operated exterior the central CAC database.

“For the time being, we function a fragmented system the place sure sectors keep separate useful possession registers, such because the Extractive Trade and NEPZA, exterior the central nationwide register managed by CAC. This case creates duplication, inconsistencies, and regulatory loopholes. It weakens our nationwide integrity framework and complicates law-enforcement efforts,” he mentioned.

Magaji pressured that CAC was legally and structurally positioned to function the central repository for useful possession information within the nation.

“There’s subsequently an pressing want for a single, harmonised nationwide register for useful possession in Nigeria. CAC is positioned by regulation and construction to function the central repository for useful possession info. We want your help, your voice, your advocacy, and your institutional backing to push for this reform within the nationwide curiosity,” he pleaded with stakeholders.

In response to him, a single register would enhance verification, improve transparency, and strengthen Nigeria’s compliance with international anti-money laundering and counter-terrorism financing requirements.

Magaji additional described useful possession disclosure as a rising international crucial, citing latest worldwide developments, together with courtroom selections in the UK involving property possession linked to Nigerians.

“Useful possession disclosure has turn into some of the topical and important points in international governance in the present day. The world is transferring quickly in the direction of transparency, and Nigeria can not afford to lag behind,” he mentioned.

He referred to as for the elevation of the Individuals with Vital Management Guidelines into an Act of the Nationwide Meeting to supply a stronger authorized basis for enforcement.

“We should now push strongly for the passage of the Individuals with Vital Management Guidelines into an Act of the Nationwide Meeting. We want a stronger, extra complete authorized framework that may checkmate subtle abuses of the company car,” he added.

The CAC boss additionally raised concern over the apply by some giant firms of declaring different firms, reasonably than people, as useful house owners. “This defeats the aim of useful possession transparency. It creates layers of concealment and undermines accountability,” he warned.

Magaji concluded by urging sustained collaboration amongst Nigeria’s anti-corruption and law-enforcement businesses, describing the combat in opposition to corruption as a collective nationwide duty. “The combat in opposition to corruption isn’t the duty of 1 company. It’s a nationwide obligation requiring coordination, belief, and shared resolve,” he mentioned.

He referred to as on businesses together with the EFCC, ICPC, Nigeria Monetary Intelligence Unit, and the Nationwide Drug Legislation Enforcement Company to deepen info sharing, joint investigations, and real-time verification with the CAC.

“Our collaboration should not be episodic. It have to be sustained, structured, and institutionalised in order that our collective efforts translate into measurable outcomes for Nigeria,” he added.