EFCC seeks stronger partnership to curb terrorist financing, protect CSOs

By Obas Esiedesa, Abuja

The Economic and Financial Crimes Commission (EFCC) has called for stronger collaboration among governments, regulators and civil society organisations across Africa to combat terrorist financing while protecting legitimate charitable organisations from unnecessary regulatory restrictions.

Speaking at the 3rd Africa High-Level Civil Society Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) Conference in Abuja, EFCC Chairman, Mr Olanipekun Olukoyede, said effective implementation of the Financial Action Task Force (FATF) Recommendation 8 requires targeted, risk-based measures rather than blanket regulation of non-profit organisations.

Olukoyede, who was represented by the Director of the Special Control Unit against Money Laundering (SCUML), Mr Harry Erin, said terrorist financing, violent extremism, transnational organised crime and illicit financial flows continue to threaten peace, democratic institutions and economic development across the continent.

He stressed that FATF Recommendation 8 does not seek to restrict the activities of all non-profit organisations but requires countries to identify those vulnerable to terrorist financing abuse while safeguarding the majority engaged in legitimate humanitarian and development work.

“Effective implementation of FATF Recommendation 8 depends on trust — trust between regulators and civil society, trust between governments and development partners, built through transparency, consultation, information sharing and mutual respect,” he said.

According to him, Nigeria’s inter-agency collaboration involving the EFCC, SCUML, the Nigerian Financial Intelligence Unit (NFIU), the Office of the National Security Adviser, the Corporate Affairs Commission and civil society organisations enabled the country to conduct a comprehensive terrorist financing risk assessment of the non-profit sector.

He said the exercise had helped regulators adopt a more targeted approach to identifying vulnerabilities while allowing legitimate charities to continue their work without undue regulatory burdens.

Olukoyede added that Nigeria’s reforms demonstrated that compliance with international standards should strengthen institutions, improve transparency and enhance public confidence, rather than merely satisfy global assessment requirements.

Also speaking, Executive Director of Spaces for Change (S4C), Mrs Victoria Ibezim-Ohaeri, said the conference marked 10 years of the organisation’s advocacy for the proper implementation of FATF Recommendation 8 in Nigeria.

She said sustained engagement between civil society and regulators had transformed what was once a contentious relationship into a collaborative partnership, leading to major reforms, including Nigeria’s standalone terrorist financing risk assessment for the non-profit sector and the removal of non-profit organisations from the list of reporting entities under the Money Laundering (Prevention and Prohibition) Act.

Ibezim-Ohaeri noted that Nigeria’s experience had earned the country a compliant rating on FATF Recommendation 8 and was now being shared with several African countries, including Ghana, The Gambia, Togo and Burkina Faso.

She said hosting the conference in Abuja reflected a growing determination for Africa to shape global conversations on financial integrity and security while developing solutions suited to the continent’s realities.

Earlier, the Board Chair of S4C, Mr Samuel Diminas, lamented the impact of illicit financial flows on African countries, noting that about $88 billion was being siphoned annually from the continent through illicit financial activities.

Delivering the keynote address, the United Nations Special Rapporteur on the Promotion and Protection of Human Rights and Fundamental Freedoms while Countering Terrorism, Professor Ben Saul, commended Nigeria for achieving compliance with FATF standards in late 2025.

He also acknowledged the ambition of the National Counter-Terrorism Centre to become a regional hub for counter-terrorism expertise, saying he looked forward to continued engagement with Nigerian authorities on protecting human rights while combating terrorism.

Saul said the conference provided an opportunity to examine how FATF standards could be implemented effectively without undermining human rights.

He noted that the 2023 revision of FATF Recommendation 8 clarified that only non-profit organisations (NPOs) that fall within FATF’s definition should be subjected to counter-terrorism financing measures, stressing that regulation must be risk-based, proportionate and should not indiscriminately target the entire non-profit sector.

He warned that many countries continued to over-regulate civil society organisations by imposing excessive registration, reporting, auditing and monitoring requirements, often based on weak or outdated risk assessments.

According to him, such measures divert scarce resources from humanitarian work, peacebuilding, human rights advocacy and efforts to prevent violent extremism, while discouraging legitimate charitable activities.

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