NBA Introduces Comprehensive Anti-Money Laundering Guidelines for Legal Practitioners
The Nigerian Bar Association (NBA) has issued new directives for lawyers across Nigeria, focusing on compliance with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) regulations. The guidelines, as outlined in the Rules of Professional Conduct for Legal Practitioners 2023 (RPC) and the NBA Anti-Money Laundering Committee (NBAAMLC) Appointment and Examination Rules and Protocols 2024, mark a significant step towards strengthening the legal profession’s role in combating financial crime.
Background
The Rules of Professional Conduct, which were published in the Federal Republic of Nigeria Official Gazette on June 6, 2023, establish a legal framework that mandates AML/CFT measures for lawyers, law firms, and notaries in Nigeria. The RPC provides that legal practitioners are obligated to adhere to specific protocols designed to prevent the misuse of legal services for illicit activities, including money laundering and terrorist financing.
In furtherance of these regulations, the NBA constituted the NBA Anti-Money Laundering Committee (NBAAMLC) under Rule 73 of the RPC. Following its inauguration, the committee developed a comprehensive framework, which was officially approved and published on June 26, 2024. The NBAAMLC has been designated as the self-regulatory body (SRB) responsible for ensuring compliance with AML/CFT measures within the legal profession in Nigeria.
Key Compliance Measures
As part of its mandate, the NBAAMLC has initiated a thorough risk assessment of the legal profession and implemented the following measures to ensure compliance:
Risk Profiling: Legal practitioners will undergo risk assessments, which will be considered when issuing letters of good standing, making recommendations, and handling disciplinary matters. This approach ensures that practitioners at higher risk of being exploited for illegal activities are closely monitored.
Supervisory Framework: A new supervisory framework has been established, which requires legal practitioners and firms to maintain accurate information on beneficial ownership. This measure aims to enhance transparency and prevent the misuse of legal services.
Compliance Obligations: Legal practitioners are required to:
Perform risk assessments at the firm, client, and transaction levels.
Conduct appropriate risk-based Client Due Diligence (CDD).
Implement internal controls and report suspicious transactions.
Complete continuing legal education on AML/CFT topics.
Document all AML-related decisions and processes.
Maintain confidentiality and adhere to all legal requirements when reporting suspicious activities.
Disciplinary Actions for Non-Compliance
The NBA has made it clear that any lawyer who fails to comply with the provisions of Chapter 2 of the RPC or neglects their duties under these guidelines will be considered to have committed professional misconduct. Such individuals will face disciplinary action under the Legal Practitioners Act. The NBAAMLC is authorized to recommend disciplinary proceedings or other legal measures against practitioners found to be in breach of the AML/CFT provisions. Additionally, it is the responsibility of all lawyers to report any violations of the RPC to appropriate authorities.
Supporting Compliance
To assist legal practitioners in understanding and adhering to these requirements, the NBAAMLC will provide resources such as training programs and guidance documents. Legal practitioners are encouraged to regularly visit the NBA portal for updates and resources on AML/CFT compliance.
In a statement, NBA President Mazi Afam Osigwe, SAN, LL.M, and General Secretary Dr. Mobolaji Ojibara emphasized the importance of these guidelines. They highlighted that compliance with the AML/CFT measures is not only about adhering to legal obligations but also about maintaining the integrity of the legal profession, protecting its reputation, and contributing to the national security of Nigeria.
