Balancing Anti-Money Laundering Measures and Financial Inclusion: The Example of the United Kingdom and Nigeria

Emerald, Journal of Money Laundering Control, Forthcoming

Posted: 16 May 2018 Last revised: 29 Dec 2019

See all articles by Ehi Esoimeme

Ehi Esoimeme

University of Wales System - Cardiff Law School

Date Written: May 2, 2018

Abstract

PURPOSE – This paper critically examines the anti-money laundering measures of the United Kingdom and Nigeria, to determine what the best approach is. The best approach is likely the one that strikes a fair balance between protecting the financial system against money laundering and promoting financial inclusion.

DESIGN/METHODOLOGY/APPROACH – This paper relies mainly on primary and secondary data drawn from the public domain. It also relies on documentary research.

FINDINGS – This paper critically analysed the anti-money laundering measures of the United Kingdom and Nigeria to determine that the anti-money laundering measures of Nigeria does not strike a fair balance between protecting the financial system against money laundering and promoting financial inclusion since it does not expressly provide for verification of a customer’s identity at the account opening stage for low risk accounts. The paper however determined that the anti-money laundering measures of the United Kingdom does strike a fair balance between protecting the financial system against money laundering and promoting financial inclusion since it requires customer identification and verification before the establishment of a business relationship for customers who want to open a basic bank account.

RESEARCH LIMITATIONS – This paper focuses on the anti-money laundering and financial inclusion measures in the United Kingdom’s Payment Accounts Regulations 2015 and the Central Bank of Nigeria’s (Anti-Money Laundering and Combating the Financing of Terrorism in Banks and Other Financial Institutions in Nigeria) Regulations, 2013.

ORIGINALITY/VALUE – This Article offers a critical analysis of the anti-money laundering and financial inclusion measures of the United Kingdom and Nigeria as provided in the United Kingdom’s Payment Accounts Regulations 2015 and the Central Bank of Nigeria’s (Anti-Money Laundering and Combating the Financing of Terrorism in Banks and Other Financial Institutions in Nigeria) Regulations, 2013. The paper will provide recommendations on how the measures could be strengthened. This is the only article to adopt this kind of approach.

Keywords: Money Laundering, Financial Inclusion, Bank Verification Number, Blockchain, Basic Current Account, Three-Tiered KYC, Brexit

Suggested Citation

Esoimeme, Ehi, Balancing Anti-Money Laundering Measures and Financial Inclusion: The Example of the United Kingdom and Nigeria (May 2, 2018). Emerald, Journal of Money Laundering Control, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3172081

Ehi Esoimeme (Contact Author)

University of Wales System - Cardiff Law School ( email )

PO Box 427
Cardiff, Wales CF10 3AX
United Kingdom

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