Reps expand EFCC operations to cover terrorism financing, capital market, cybercrime, others

Uphold life imprisonment for financiers of terrorism, weapons of mass destruction

Impose N4m fine, two years jail term on erring Bureau de Change, hawkers of legal tender

Bank officials who tip off suspects under investigation risk five years jail term, N3m fine

THE House of Representatives has passed through Third Reading, a bill seeking to strengthen legal framework against economic and financial crimes by expanding the powers of the Economic and Financial Crimes Commission (EFCC) to cover terrorism financing, cybercrime, capital market fraud, digital assets, illegal fund transfers, contract and procurement fraud, among other financial offences.

The proposed legislation, titled: the EFCC (Establishment) Amendment Bill, 2025, was passed shortly before the House proceeded on its two-month annual recess. The bill, comprising 39 clauses, substantially amends the EFCC Establishment Act, 2004, as amended in 2022, with new provisions aimed at modernising the commission’s operations and aligning Nigeria’s anti-money laundering framework with global standards.

One of the most significant provisions of the bill is the introduction of life imprisonment for any person convicted of financing terrorism or the proliferation of weapons of mass destruction.

The bill also provides life imprisonment for anyone who facilitates such financing or makes funds, financial assets, economic resources or related services available for terrorist activities.

The House Committee on Financial Crimes, whose report was considered and adopted by the Committee of the Whole, explained that the amendment seeks to strengthen institutional coordination in combating corruption and economic crimes, while guaranteeing the operational independence of the EFCC.

Under the amendments, the commission is mandated to act independently and in the public interest without being subject to the direction or control of any person or authority in carrying out its statutory responsibilities.

The bill also significantly broadens the investigative jurisdiction of the commission by empowering it to investigate and prosecute offences relating to capital market fraud, electronic and digital assets, cybercrimes, contract and procurement fraud, illegal funds transfer, fraudulent dealings in negotiable instruments, advance fee fraud, money laundering and other related financial crimes.

In a move aimed at strengthening corporate governance within the anti-graft agency, the propose legislation introduces stricter qualifications for appointment as EFCC chairman. It provides that the chairman must either be a legal practitioner with at least 15 years post-call experience, including 10 years cognate practice, or a serving or retired officer of a law enforcement or anti-corruption agency not below the rank of commissioner of police or director. The bill also expands the commission’s membership to include four eminent Nigerians with expertise in finance, information technology, real estate management and law.

The proposed amendments further seek to insulate the office of the EFCC chairman from arbitrary removal by stipulating that while members of the commission may be removed by the president under specified conditions, the chairman can only be removed with the approval of a two-thirds majority of the Senate.

To improve institutional capacity, the bill restructures the commission by establishing dedicated departments, including the Legal and Prosecution Department, Investigation Department, Administration and Human Resources Department, Finance and Accounts Department, EFCO Academy, Proceeds of Crime Management Department, Special Control Unit against Money Laundering, Fraud Risk Assessment Prevention and Control Department and Forensics and Crime Laboratory Services.

Impose N4m fine, two years jail term on erring Bureau de Change, hawkers of legal tender

The bill also introduces stiffer penalties against illegal foreign exchange practices. It provides that any person who hawks or peddles legal tender or currency on the streets or border points, or any licenced Bureau de Change operator conducting business outside approved offices or registered branches, commits an offence punishable by a minimum of two years imprisonment or a fine of N4 million, or both.

Bank officials who tip off suspects under investigation risk five-year imprisonment

Similarly, bank officials or employees of financial institutions who fail to comply with the provisions of the Act, tip off suspects under investigation, or destroy financial records required under the law would, upon conviction, be liable to imprisonment for up to five years, a fine of N3 million, or both. Individuals, who divert loans obtained specific purposes would also face stiff sanctions, including imprisonment substantial fines, refund of diverted credit facilities and temporary disqualification from accessing future loans.

To strengthen asset recovery, the bill empowers the EFCC to trace and identify properties linked to persons under investigation and obtain interim attachment orders from the courts. It also authorises the commission, with court approval, to dispose of perishable or deteriorating assets, while investigations are ongoing and manage forfeited properties through its Directorate of Proceeds of Crime Management.

The proposed law further grants the commission authority to obtain information from public and private institutions without hindrance, freeze suspicious bank accounts upon obtaining ex parte court orders and investigate unexplained wealth where a person’s lifestyle and assets appear inconsistent with legitimate sources of income.

Another major innovation is the introduction of comprehensive money laundering provisions. Under the new Section 38A, any individual or corporate body found to have concealed, transferred, converted or retained proceeds of unlawful activities commits the offence of money laundering and faces imprisonment of up to 14 years or a fine of not less than five times the value of the proceeds of crime, or both. Corporate entities risk similar financial penalties and possible revocation of their operating licenses for repeated violations.

The bill equally criminalises conspiracy, aiding and abetting economic and financial crimes, while strengthening the protection of informants by providing that EFCC officers cannot be compelled to disclose the identity of their sources.

It bars courts from entertaining applications seeking to restrain the commission from performing its statutory functions or granting stay of proceedings in EFCC cases until final judgment has been delivered by the High Court.

If eventually harmonised by both chambers of the National Assembly and assented to by President Bola Tinubu, the amendment would represent one of the most comprehensive overhaul of the EFCC legal framework since the commission was established in 2003.