Money Laundering Control in Nigeria

nones Laundering Control in Nigeria specie washINTRODUCTIONThis dissertation look ats a contri scarceion to the worrying issues of capital make clean in Nigeria and the control mechanism in spite of appearance the economy. Money make clean is a global caper which warranted a declaration by the linked Nations. The declaration strongly condemns gold launder because it aids the use of monetary systems for adulterous drug craftking and other(prenominal) serious iniquitys such as terrorism. For interpreter the work of Okogbule on (Official depravity and the dynamics of specie launder in Nigeria 2007), and the work Chukwumerie on (Nigerias Money Laundering (prohibition) travel, 2004 A tighter noose, 2004), and the work of Chibuike (Ethics in Nigerian Banking, 2004), all these scholars did not give a look at the intrusting sector in regard to notes wash compliance and if Nigeria, is real regulating according to global practicing. There fore(prenominal), that gi ves the exploreer more(prenominal) effort in looking inwards to the banks, since that is where large achievement hit the bookss go down.THE OVERVIEW OF MONEY make cleanThe research project is on Money wash Control in Nigeria, and how it has been a very serious business in that nation especially in new-made times during the noncombatant administration, (Chukwuemerie, 2006). But it is not only Nigeria, which its affecting, it is a menace in the wholly world that pull down bespeak the building blocked Nations making a declaration strongly condemning laundering of keeping through and through the illicit drug trafficking and other serious crime, as nearly as the use of the monetary systems of the states for that purpose, (UN Resolution S- 20/4 D) certify up from around the world proves this view. concord to Walker, (1999), around $2.85bn is been laundered course of instructionly around the globe. Again, for employment the linked Kingdom Goernment recently issue a check let knocked out(p) of nonp beil hundred and fifty thousand (150,000) pounds to the Attorney General of Nigeria, as constituent of the homecoming laundered by a condition Governor in Nigeria (Joshua Dariye), also a cheque for $2 million belonging to creator regulator of Bayelsa pass on, Chief Diepreye Alamieyeseigha, was also returned to Nigeria by the British judicature and promised to returned the reduce matter of Fourty Million (40,000,000) pounds regain from some Nigerian Government Officials (Oyedele, 2008)THE INTERNATIONAL hold AGAINST MONEY LAUNDERINGMoney laundering has been a global problem since the beginning of the 20th century. Uche (2007) relate that in that respect were 12 multilateral drug treaties between 1912 and 1972. These treaties helped in regulating the manufacturing and trading of drugs worldwide (United Nations, 1987). For instance, Nadelemann (1988) news opuss the United Nations acceptance of the i serve ups of Vienna Convention on illicit traffic of narcotic drugs and psychedelic substances. The convention emphasises on tracking down the wealth of finances launderers. bind 5(2) of the Vienna convention provides that distributively party must enact municipal laws to enable it to identify, trace, seize, freeze, and forfeited all manner of profit derived from or use in Money laundering offences. Further all member nations ar infallible to assist other member deep down their territory in the sputter against specie laundering offences (Article 5(4b)).In 1990, the Council of Europe convention on Laundering, search, seizure and confiscation of the final payment from crime was adopted. And one of the notable differences is that it goes beyond drug related crimes.The wolfsberg, this are group of el until now banks that came together to fight money laundering. The group was general anatomyed in the year 2000, at Chateau Wolfsberg in north east of Switzerland the group released their anti money laundering principles to their residual banks, all in sight to fight money laundering.The pecuniary action Task Force (FATF) is an inter- governmental psycheate whose purpose is the development and promotion of issue and planetary policies to combat money laundering and terrorist financing.The FATF is therefore a policy-making luggage compartment created in 1989that works to generate the necessary political will to take up aboutlegislative and regulative reforms in these areas. The FATF has published 40+9Recommendations in drift to accept this objective.For example, the end of former Nigerian Head of land (Gen. Sani Abacha), $675.2m 75.3m GBP were all re go aftered by the government of Nigeria, with the attention of the other countries were the money was laundered (Shehu, 2004).MONEY LAUNDERING IN NIGERIAOkogbule (2007) argue that money laundering was relatively unknown in Nigeria up to the mid 1980s. Further, he relate that it is now being utilise as a means of corruption in e very fraction of Nigerian society. For this reason, the military government enacted a decree (which decree and when was it enacted) . Thereafter, the civilian administration that came in 1999 repealed the decree and came up with the Money Laundering (Prohibition) wreak of 2004 which gave birth to the scotch and fiscal Crimes missionary station (EFCC). Pursuant to the spell, the delegating is empowered to investigate and enlist each person or corporate body who commit both act of money laundering. For instance, a former governor in Nigeria was charged with money laundering offence for bringing into the United Kingdom the lend of 3.2 Million Dollars in 2005 (Guardian News constitution, 2005).Reiterating the laundering issue, the Chairman of Economic and Financial Crimes Commission (EFCC), Mrs. Farida Waziri mentioned that the Nigerian government lost over 285 zillion Naira in 10 years. These tend support the argument that there is a regulation gap in the regulation of mone y laundering in Nigeria. It is in context that this research intends to look at money laundering regulations in Nigeria, so as to contribute towards developing the country.THE SCOPE OF THE teachingThe scope of the study will focus on the effectiveness money laundering regulation in the Nigerian Banking sector, and whether the Nigerian authorities drive eachthing to learn from, how Money laundering is dealt with in the world (International Standard)?AIMS OF THE STUDYThe chief(prenominal) focus of the dissertation is to find out the effectiveness of money-laundering regulations in regards to banks in Nigerian, and compare it with the international standard?The extent of money laundering in NigeriaThe effectiveness of money laundering regulations in NigeriaThe international standard on Money laundering ControlWhat less(prenominal)ons Nigeria throw out learn from thatChapter Two literary productions REVIEWCONCEPT OF MONEY LAUNDERINGMoney laundering can generally be defined as the process of converting or transferring sinful proceeds with the intention of disguising their illicit origin (UN, 2000 Art. 3(a)(i)). The extent of the problem becomes clear, considering that, in 1996, the International Monetary Fund (IMF) estimated the money laundering product line at around 2-5 per cent of the worlds gross domestic product (Camdessus, 1998), which amounts to up to US$1.5 trillion (Financial moveion Task Force FATF, 2007). Moreover, it is claimed that the money laundering business is the third biggest industry worldwide following the international anoint heap and foreign exchange (Preller, 2007, pp 234).In one of the definitions it says conversion transfer of either property, penetrating such property is gotten from drug related offense or even acting in the scheme to conceal the true teaching of the origin of such property in order to protect such person from facing the legal consequences of his/her action.FATF organization defines money laundering as a co ncise the processing of criminal proceeds to disguise their ineligible origin in order to legitimize the ill gotten gain of crime. faithfulness Dictionary (1990) refers to it as an investment or other transfer of money flowing from racketeering, drug exercises, and other immoral sources into legitimate channel so that its fender source cannot be traced.Money laundering has been defined as a route coin obtained from smuggled sources, and put into an account that cannot be traced for possible action Okogbule, (2007). It has also been described as the processing of bills derived from illegal or illegitimate sources, through legal pecuniary channels with a view to legitimizing and concealment or disguising the source of such funds (Osinbajo and Ajayi, 1991, Okogbule, 2007).THE EXTENT OF MONEY LAUNDERING IN NIGERIAMoney laundering was not a prominent crime in Nigeria until the late 1980s, during the period of an oil boom with a tremendous increase in the aim of tax and comme rcial activities in the country (Okogbule, 2007, pp 52).Therefore, the issue of money laundering in Nigeria it is now through the official corruption, which has been exploited by public officers in Nigeria, who incorporate companies and use as a conduit pipe by apportion some phoney contracts and lodge the money through the companies bank accounts, some(prenominal) in Nigeria and abroad, some(prenominal) millions or even billions of naira are transferred from the government treasuries (Okogbule 2007).The former Chairman of the Economic and Financial Crimes Commission (Nuhu Ribadu), told the BBC in 2006, that $380bn had been stolen or atrophied in Nigeria since independence.That $140m had been recovered from one unnamed former Nigerian drawing card and that nearly $400m of illegally gained assets had been identified in the possession of a former governor of Bayelsa State. Last year, Nigeria recovered $458m found in Swiss bank accounts linked to the countrys late military ruler S ani Abacha. Mr Abacha was in power from 1993 to 1998 and is estimate to perk up embezzled billions of dollars. Last year his son, Abba Sani Abacha, was charged with money laundering and fraud after being extradited to Switzerland.According to Chukwuemerie, (2006), rate of pecuniary crimes in Nigeria project a bad image abroad. And how Nigerians are been treated with turn down in the foreign land, again he talks about the crimes related to opening of account by customers, because in Nigeria, sooner the Money laundering prohibition act 2004, anyone can go and open account without a proper identification.However, the main issue is corruption that wears many faces, which are nepotism, bribery, exchequer looting, and inflation contract prices, money laundering and advance fee frauds and near of these crimes are destroying the economy of the country (Ajayi and Ososami, 2007).The display circumstance of former Head of overgorge Gen. Sani Abacha, he was accused with his cronies of embezzling over $5bn and which out of the money $2.3bn were stolen direct from the government treasury and the remaining were received as a bribes for contracts. The money was laundered in various foreign bank accounts in UK, USA, Switzerland, Luxembourg, Hong Kong (Ige, 2002, Shehu, 2004).Investigation by the UK monetary services pronouncement (FSA), the London Metropolitan Police confirmed that over $1.3bn of Abacha money passed through London (Chamberlin, 2002, Shehu, 2004, pp).Furthermore, according to a study conveyed by the Nigerian Trade and coronation Center in UK, shows that about dickens million Nigerians living in United Kingdom squander investments worth almost Ninety four Billion (94bn GBP) pounds. And out of these amounts of money 84bn is in real estate, 7bn in vehicles, composition the remaining 3bn is in mental strains and shares (Adesina and Madunagu, 2004, Malgwi, 2004).Malgwi, (2004), in his paper gives an example of former Head of State Late Gen. Sani Ab acha, fakes daughter who duped an American the chalk up of Seven Million ($7) dollars, with the pretence that her late father left(a) the sum of $100m in the central bank of Nigeria, and the account is coded. Therefore, she need his assistance with some money to bribe the officials of the apex bank to get the money out and he will get thirty (30%) percent of the money. quite a recently, a serving chief of staff to the governor of Rivers State (Ezebunwo Nyeson Wike), was caught by the Economic and fiscal Crimes Commission (EFCC), laundering the sum of N4.670 Billion (Four Billion, sise Hundred and Seventy Million Naira), which the consignment believes was public money that was deviate into his personal account (Babafemi, 2009). He has since been charged by a hook to explain the sources of the money. This is the problem with the country people in position of authority are abusing the trust people repose on them, every solar day it is misfortune even with the money laundering re gulation in place.There is no exact statistics of the amount of money been laundered in Nigeria, but below are some of the high profile cases been prosecuted by the economic and financial crimes commission from 2007 to 2009CHAPTER THREE THE MONEY LAUNDERING REGULATION IN NIGERIAThe phrase money-laundering was not in the Nigerian dictionary, until in the 1980s which was when it was recognised and efforts were made to deal with the problem by the government. Therefore, there were decrees set by the government of Generals Muhammad Buhari, Ibrahim Babangida and Sani Abacha as heads of state and military president respectively, prohibiting activities related to money-laundering ( permutation Control (Anti Sabotage) Decree No 7 of 1984, discipline Drug Law Enforcement Agency Decree No 48 of 1989, now Caps No 29 Laws of the federation of Nigeria, 2004 Okogbule, 2007).1995 decree right one of the defects of these laws which limited the activities to Drug traffickers in order to avoid loop hole which gave way for the accused person to escape justice when the case is not drug trafficking (Adekunle, 1999 Okogbule, 2007). It was in this recognition of the defect or inadequacy of the previous Decrees to cover all the aspects of money laundering that gave birth to the enactment of the money-laundering (prohibition) Act, 2003 which covers everything relating to the offence. And after One year of its enactment it was amended through the money-laundering prohibition (Amendment) Act 2004, in order to give the agencies more power to institute an investigation and prosecute offenders (Okogbule, 2007).However, the amendment was based on two philosophies. Firstly, it was on the need to control the put of huge financial transactions in Nigeria, since the country is known as a cash society. In the amended Act, it states that no person or corporate body shall make or accept cash pay of sum exceeding N500, 000 or its equivalent in the case of individuals, while in the case of corpor ate bodies the amount is N2, 000,000, unless the transaction is done through a financial ecesis, the provision is design to enhance the monitoring capabilities of the regulatory institutions over huge financial transactions and encourage the use of financial institutions (Okogbule, 2007).However in the second philosophy in the act, it is a leading requiring disclosure of any financial transaction exceeding a certain(a) sum of money. function 2(1) of the Act, state that A transfer to or from a foreign country funds or protective covering exceeding the sum of $10,000 or its equivalent shall be describe to the central bank of Nigeria.And it bring forward say that a report should be made pursuant to the in a higher place provision to indicate the nature and amount of transfer, the names and addresses of the sender and recipient role of the funds or securities (Okogbule, 2007).MONEY LAUNDERING REFULATION IN RELATION TO INSTITUTIONS IN NIGERIAThe money laundering (Prohibition) Ac t 2004, of Nigeria in particle 1 states that no person or corporate body shall, except through transactional institutions, make or accept deposit of a sum exceeding, A, for an individual the sum of N500, 000 or its equivalent in other currency and B, the sum of 2,000,000 for a corporate body, that anything above this should be made through the financial institution samewise for the individual costumer.In incision 2 of the prohibition of money laundering act states that any transaction from or to foreign country of funds or securities exceeding the sum of US $10,000 shall be reported to the central bank of Nigeria (in the act refer to exchange Bank) or security and exchange commission.Again in section 2 sub section 1, states that the report should indicate the nature and the amount of the transfer, the names and addresses of the sender and receivers of the funds or securities.CUSTOMER DUE DILLIGENCEHowever, it is provided in section 5(1) of the Act that before opening an account for or issuing passbook or even entering into any business relationship with a potential customer, the financial institution shall verify the customers individualism and address.For individual, he is required to provide proof of his identity by presenting to the financial institution a legal original copy of an official document bearing his names and photograph Secondly, he is to show proof of his address, by presenting to the financial institution the originals of receipts his/her utilities issued within the last three months by public institution (example, electricity or water bill).In the case of a body corporate, its proof of identity shall be provided by the presentation of its certificate of incorporation and other valid official documents attesting to the existence of the body corporate. Where a manager, employee, or assignee is delegated by a body corporate to open or operate an account, such a person shall in addition to the requirements specify for private individual s also show proof of a power of attorney granted to him for that purpose.One measurable provision in the Act designed to facilitate the detection of money laundering activities is section 6(1). It provides as followsWhen a financial institution is requested to stock up out a transaction, whether or not it relates to the laundering of the proceeds of a crime or an act, the financial institution shall seek cultivation from the customer as to the origin and the destination of the funds, the aim of the transaction and the identity of the beneficiary.In order to make this surveillance function more effective, financial institutions are required within seven years of the transaction to carry out the following actionsDraw up a scripted report containing all relevant information about the transaction as rise up as the identity of the principal and where applicable, those of the beneficiary.Take appropriate action to balk the laundering of the proceeds of a crime or an illegal Act. dis patch a copy of the report and action interpreted to the Central Bank, the Commission, the Securities and Exchange Commission, or such other appropriate regulatory authority, as the case may be.Significantly, any financial institution which fails to keep up with the above provender is guilty of an offence and liable upon conviction to a fine of N1, 000,000 each day for as long as the offence continues.In order to emphasize the importance of records of transactions, it is provided that these records are to be kept and preserved for at least a period of 10 years, and that the records shall be communicated to the Central Bank, National Drug Law Enforcement Agency (NDLEA), judicial authorities, Customs Officers, and such other persons as the Central Bank may from time to time specify.However, the needful disclosure requirement concerning financial transactions is contained in section 10 of the Act. It is to the effect that a financial institution or casino shall report to the Agenc y in writing, lodgement or transfer of funds in excess of One million (N1, 000,000) Naira or its equivalent in the case of an individual and Five million (N5, 000,000) Naira or its equivalent in the case of a body corporate. This report is to be submitted within seven days of any single transaction.And even an ordinary citizen other than a financial institution may voluntarily give information on any transaction, lodgement, or transfer of funds involving the amounts set out above. This ensures that even when a financial institution fails to report as required, information about the transaction still gets to the Agency (See Chukuemerie, 2004, Okogbule, 2007b).The intent of the provisions is to enable the Agency construe the origin of the funds and de circumstanceine whether to direct a stoppage of the transaction or not. This it can do when acknowledging receipt of such disclosure, report or information received in furtherance of the provisions. If the Agency is unable to retard t he origin of the funds within a period of 72 hours, it may make a request to the Federal High Court for an order that the funds, accounts, or securities referred to in the report be blocked, and an order made by the Court in pursuance of this provision shall be enforced forthwith.Section 9(1) of the Act provides that every financial institution shall develop programmes to combat the laundering of proceeds of a crime or other illegal act. These shall entangleThe designation of compliance officers at management level at its main office and at every branch and local officeRegular readiness programmes for its employeesThe centralization of the information collectedThe establishment of an internal audit unit to ensure compliance with and ensure the effectiveness of the measures taken to enforce the provisions of the ActIn order to ensure compliance with this provision, the Governor of the Central Bank of Nigeria is empowered to impose a penalty of not less than one million Naira on an y financial institution which fails to comply with the above provisions. And that makes it a very important provision since the threat of neighboring(a) sanction which could be suspension of the banks operating license can pay off compliance with the statutory provision.THE MONEY LAUNDERING OFFENCE IN NIGERIAThe unquestionable money laundering offences are provided for in sections 14 18 of the Act which also specify the penalties for such offences. Thus, section 14(1) provides as followsAny person whoconverts or transfers resources or property derived directly or indirectly from illicit traffic c in narcotic drugs or psychotropic substances or any illegal act, with the aim of either concealing or disguising the illicit origin of the resources or property or aiding any person have-to doe with in the illicit traffic c in narcotic drugs or psychotropic substances or any other crime or illegal act to evade the legal consequences of his action orcollaborates in concealing or disguis ing the genuine nature, origin, location disposition, movement or ownership of the resources, property or rights thereto derived directly or indirectly from illicit traffic c in narcotic drugs or psychotropic substances or any other crime or illegal act, commits an offence under this section and is liable on conviction to shackles for a term of not less than 2 years or more than 3 years.Significantly, a person who commits an offence under this subsection shall also be subject to the same penalty notwithstanding the fact that the various acts constituting the offence were affiliated in different countries or places. It is not demanding to ascertain the rule behind this provision since, very often money laundering entails the deputation of some of the acts in one country and the others in other countries. This brings to the fore the transnational nature of money laundering which has given rise to international concern for its regulation.Section 16 of the Act provides that any per son whoWhether by concealment, removal from jurisdiction, transfer to nominees or otherwise retains the proceeds of a crime or an illegal act on behalf of another person knowing or suspecting such other person to be engaged in a criminal conduct or has benefited from a criminal conduct orKnowing that any property either in whole or in part directly or indirectly represents another persons proceeds of a criminal conduct, acquires or uses that property or has possession of it, commits an offence under this Act and is liable on conviction to imprisonment for a term of not less than 5 years or to a fine equivalent to 5 times the value of the proceeds of the criminal conduct or to both such imprisonment and fine.It is difficult to fashion the rationale for this marked variation in the punishment specified under this section and that provided for in section 14 of the Act relating to the unquestionable conversion or transfer of funds from such criminal or illegal activities which is state d to be not more than three years. Although it may be said that the opportunity created by a willing receptacle could have emboldened the suspect and thus facilitated the commission of the offence, it is nevertheless incongruous to have such marked disparity in the punishment for both kinds of offences, when the level of moral reprehensibility is more for the actual converter or transferor of such illegal funds than the receiver.THE EFFECTIVENESS OF MONEY LAUNDERING REGULATION IN NIGERIAThe government of former president Obasanjo, of Nigeria was able to start the fight against corruption and money laundering, by presenting the bill Money laundering (Prohibition) Act 2004, before the national assembly which was accented by the government and put into use instantly in order to fight the menace in the country.However, by the year 2006, the EFCC was able to secure the conviction of the former inspector general of police, Mr Tafa Balogun for several offence mostly on money laundering, b y showing that practise that no one is above the law in the country and it shows that it has the political will to tackle the canker worm of money laundering in all its ramifications (Okogbule, 2007, Chukwuemerie, 2006).Furthermore, within the first two years of creating the Economic and Financial Crimes Commission in Nigeria, they proved effective and were able to recovered sic more than $1.5bn (N203.5bn) of looted funds and arrested more than 200 people and out of the 200, 50 people were convicted and recovered $37.1M (N5bn) from import malpractices (Malgwi, 2004).Again the EFCC was able to secure a plea bargain with a former governor of Edo State of Nigeria, Mr Lucky Igbinedion, which in the agreement consented in refunding the sum of N500M stolen funds and forfeit some of his properties. It was not only Igbinedion that got the plea bargain, Mr Nwude, Mr DSP Alamieyeseigha former governor of Bayelsa State of Nigeria, also enjoy the gesture (Alli, 2008).However, recently the Chai rman of the financial crimes commission in Nigeria, admit that they are not fully enforcing the money laundering regulation in the country while hosting stock broking firms in her office. Waziri said the anti-graft agency would start the immediate enforcement of the provisions of the Money Laundering (Prohibition) Act 2004, and prosecute all stock broking firms that default in their obligation to the jealous transactions reports and currency transaction reports (Akinsunyi, 2009).Under Section 23 of the Money Laundering Act, firms carry on the business of investment and securities (this includes stock broking firms) are designated as financial institutions and there is an obligation on them to file with the Nigerian Financial Intelligence Unit all suspicious transactions, and file with the Nigerian Financial Intelligence Unit all currency transactions above N500, 000 for individuals and the N2 million for companies.But all that is done by stock broking firms in the country. And up t o extent a an investment firm took a loan of N90 Billion from a bank in order to manipulate the market, but that is between Bank and it is customer, but the utilization of the loan is different which is inverse to Section 20 of the BOFIA and the regulations of the Central Bank of Nigeria (CBN) and carries a jail term of between two and three years. It is also a breach of the Investment and Securities Act (see Thisday Newspaper, August, 2009).However, this bring us to the issue of reporting system adopted by the Financial Action Task Force and was even part of the Nigerian Money Laundering (Prohibition) Act 2004, which is in section 6 sub-section 1(a) that direct financial and non financial institutions to draw up a written report on any illegal transaction and submit within seven days to the relevant authorities. That means the Act, is not been followed by the Banks and stock broking firms.FACTORS FOR AND AGAINST MONEY LAUNDERING REGULATION IN NIGERIAThere is no uncertainness th at with the enactment of the Money Laundering Act 2004 the Nigerian Government has taken a bold step in its efforts to fight against money laundering in the country. However, it is effort and resourcefulness may not bear the required results if the well-known problems of enforcement of law in the country are not adequately addressed in the provisions.It is a common feature in Nigeria that individuals and institutions favour to subvert laid down rules rather than comply with them, for example the recent banks audit conducted by the new Central Bank Governor, it shows how reckless the banks are operating, given out a loan of N490 Billion without a collateral, which form part of analysis in given out to loan to any customer by a bank and is used to settle out the debt in case the loan goes bad, but they ignore that and give out the money without following the laid down rules. The assurance being that even when they fail to comply, officials from the regulatory institutions will always compromise their positions. This brings to the fore the popularity of corruption in the country as such officers are often colonised to overlook noncompliance with statutory provisions (Okogbule, 2007).In such situation, there is usually an unethical alliance between regulatory officers on the pass around and the defaulting financial institutions. Therefore, there will be inadequate or uneffective enforcement of the rules, to the detriment of the country.However, recently an upright officer (Barrister Abubakar Abba Umar) with the Corporate Affairs Commission (CAC) in Nigeria lost his life in the course of his duty. He was multiform in making the organisation a very sizeable place that it suppose to be, because to get a company registered in Nigeria, it might take you two to three months, but his coming within a day after full verification you can get your company registered. composition in course of investigation of certificate fraud in the organisation, he was forced to hand over some lawyers involve to EFCC for prosecution (see leaders newspaper, 2009), seeing all this thing happening nobody will like to give himself up in order to do a good job in fighting money laundering in Nigeria.According to Andrew (2004, pp 173), he argues that the Act is faithfully implemented by Economic and Financial Crimes Commission, the Central Bank of Nigeria, the National Drug Law Enforcement Agency and the look of Commerce, this relevant authorities are the ones in positions to see the implementation of the Act to the later. However, if they did not enforce the implementation concurrently together, there is every misfortune that the Act, will not be effective as it suppose to be in checkmating the money laundering activities in the country.There is also problem of regular monitoring of the activities of these financial institutions.Inspectorate and Compliance Officers are known to be lax in their monitoring of the operations of these institutions, due to the fact tha t they are conniving together to subvert the law regulating the institutions (see Okogbule, 2007).