Newssplashy Tips:Millions of Visa, Master cards holders in Nigeria face potential international blackout

Nigeria is facing potential suspension from the EGMONT group for an alleged misuse of confidential financial intelligence by EFCC.

There is a looming international blackout for Nigerian banking community due to threats by the EGMONT Group to suspend the country from its network.

If the suspension holds, millions of visa and Master cards holders in Nigeria will be prevented from using their cards during international transactions.

The EGMONT Group is a body of Financial Intelligence Units (FIUs) of 155 countries. The body provides a platform for the exchange of expertise and financial intelligence to combat money laundering and terrorist financing among members.

In July 2017, Nigerian Financial Intelligence Unit (NFIU) was suspended for leaking sensitive information to the public. Also, the Economic and Financial Crimes Commission (EFCC) was accused of using confidential intelligence at the disposal of the country’s FIU to blackmail certain politically exposed individuals.

“The Heads of FIU made a decision, by consensus, to suspend the membership status of the NFIU, Nigeria, following repeated failures on the part of the FIU to address concerns regarding the protection of confidential information. This specifically relates to the status of suspicious transaction report (STR) details and information derived from international exchanges...," the group said in a statement

In Nigeria, NFIU is department/unit working under the EFCC. This was also raised as a concern by the group.

"...as well as concerns on the legal basis and clarity of the NFIU’s independence from the Economic and Financial Crimes Commission (EFCC). The measure will remain in force until immediate corrective actions are implemented.”

A committee has already been set up the government to look into the separation of the unit from the anti-graft agency.

Aside international blackout for card holders, the suspension will lead to higher transaction cost for international payments originating from Nigeria. This is due to complex payment channels that would be set-up to undertake any international transaction.

Also, cost of doing business will increase and cross-border trade discouraged. All these will eventually affect the country’s financial stability and worsen the already fragile economic situation in the country.