Kidnapping epidemic: Banks enabling rapid growth of abduction industry – Experts
Security experts have accused commercial banks of encouraging the kidnapping epidemic in the country, as some ransoms are paid into bank accounts.
The experts and analysts, who have backgrounds in military, intelligence, and policing, also stressed that abductions had become an industry enabled by the financial institutions that received ransoms. They advised President Bola Tinubu and security to end the epidemic.
Previously restricted to the North-West, abductions have in recent times spread to other parts of the country, including Lagos, Ogun, Nasarawa, and Delta states, as well as the Federal Capital Territory, Abuja.
In the past weeks, several incidents of kidnappings have been reported in the FCT, with over 25 persons taken away by suspected bandits who demanded huge ransoms for their release.
Speaking on the complicity of banks in the growth of the abduction business, the Managing Director of Beacon Consulting, Adamu Kabiru, affirmed that banks were involved in collecting ransoms.
Speaking in an interview on TVC, the security and risk consultant categorically stated that two banks were involved in two kidnap-for-ransom cases, which he was aware of.
He said, “ I will shock you today to tell you that in almost all the cases where my company was involved, the money was collected through our banking system, and I say this with a sense of responsibility. In almost all, it was only in very few circumstances that cash was collected and taken to these guys (kidnappers).
They are so brave and bold that they provide account numbers. Two banks are guilty, and because this is a public forum, I will not mention the banks’ names.
“But of course, if the security agencies are interested and they listen to this, I will be happy to provide it to them if they don’t already know.”
He urged the financial regulators to live up to their billing by ensuring the ‘Know Your Customer’ policy is effectively implemented by banks.
Adamu said, “So, even our financial regulators have a responsibility to ensure that banks play the Know Your Customers element very well.
Know Your Customers
“If they play that KYC element very well, it will be very easy, for instance, to descend on those account numbers and, of course, arrest whoever is the holder of that account. But as of today, that has not been done.”
The former intelligence officer noted that the Money Laundering Prohibition and Prevention Act 2022 prohibits individuals and corporate bodies from paying or receiving cash payments exceeding N5m and N10m, respectively.
The law provides for 24-hour timeframes for all financial institutions or designated non-financial institutions to file suspicious transaction reports with the Nigeria Financial Intelligence Unit.
Adamu admonished the security managers to “wake up from their slumbers’’ insisting they had the technical capacity to track the kidnappers.
The obstacle to rescuing the victims, he explained, was the fear that the abductors could kill the victims.
He said the nation lacked the tactical ability to rescue the hostages, noting that this could be achieved with good intelligence and well-trained personnel who could carry out multi-faceted rescue operations.
Speaking in an interview with The PUNCH on Sunday, Adamu stressed that the payment and withdrawal of money paid for ransom could not be made without the involvement of some bank officials.
He said the industry was “fed” by a line of other businesses, including informants, weapons and ammunition suppliers, and the “vulnerabilities that exist in our banking system.”
He added, “One can conclusively say that a kidnap-for-ransom industry exists in Nigeria and that it is a thriving one. The industry is fed by a value chain that includes businesses like informants, weapons and ammunition supplies, drugs and essentials supply etc.
It also includes those who assist them in collecting and laundering the proceeds. It is a security and financial issue. Some of the drivers of abduction are the socio-economic issues and the vulnerabilities that exist in our banking system.’’
“The financial sector in Nigeria remains a vulnerable point for money laundering and the financing of illicit transactions and terrorism. Details of this are in the last GIABA review of Nigeria’s compliance with global protocols and standards on money laundering and financing or terrorism.
“As an example, banks still have a comfortable number of their staff members supplied by third-party contracts and the issue of KYC,” he submitted.
‘Kidnapping now business’
Corroborating Adamu’s position, a retired Commissioner of Police, Emmanuel Ojukwu, hinted that the banks might be complicit in the kidnapping business.
Ojukwu said, “Crowd-funding for ransom payment has been hyped. It is not a pleasant solution; it sort of reinforces the crime. The banks are probably involved in all of this, for how do such funds get pooled, and where do they end?
“Bank customers have been finding it tough to get cash for their transactions, how come millions are being sourced for kidnappers?
I suppose that banks and NFIU should begin to ask questions on how these funds are trafficked and where they end up. There is technology to track such funds.’’
The Chairman of the Association of Corporate Affairs Managers of Banks, Rasheed Bolarinwa, could not be reached for comments on the allegations against the banks as of press time on Sunday.
However, a top official of the bank who chose to speak under condition of anonymity, because he was not authorised to speak on the matter, said the ransoms allegedly paid into some bank accounts might have been paid into tier-1 accounts with inadequate Know-Your-Customer requirements.
He said, “During the era of a former CBN governor, Lamido Sanusi, banks were allowed to open some accounts with little KYC requirements. These tier-1 accounts could be used to perpetrate such evil acts. However, I’m still not sure if that is possible because there is a limit to the amount that can enter such accounts. Only current or corporate accounts can handle huge amounts, often paid as ransoms. But the CBN is already handling these issues by asking bank customers to link their BVN to NIN before April ending.”
But Chidi Omeje, a security analyst, lamented that kidnappings had become a big industry, turning over billions in a matter of months.
He said, “It’s a huge industry, one of the biggest industries in this country. If we check the figures, we will discover that those guys have a monthly turnover of billions. So, it’s a huge industry and a very horrible one at that.
“I think it’s a pity that we have come to this level that such an odious enterprise is now becoming such a huge industry.’’
Holistic measures
In an interview with The PUNCH, a retired Police Commissioner, Edward Ajogun, noted that while the possibility of bank involvement could not be ruled out, it was important to adopt some holistic measures that could help to combat kidnapping headlong.
Ajogun said, “Kidnapping by its nature is an organised crime that has a leadership we do not even know but which is controlling their foot-soldiers. When these ransoms are collected, they are often spread out, making it easier for the ransom money to be moved without suspicion.
“I think we should rather focus on monitoring the serial numbers of the monies used in paying ransom so that it can easily be tracked; by doing that, it will be easier to track the kidnappers. Some people are also saying that it may have external connections. So our security experts should also look at monitoring if our money is being transported to foreign countries like Benin Republic, Niger, and others.
“We should also segment our security apparatus. When we realise that kidnapping is on the high side in a particular place, security apparatus should be mobilised to such a place to tackle the situation.
“The most effective means which none of us will go for is that if somebody is kidnapped, are we ready to sacrifice the individual? This is because if the security agencies cannot get the kidnappers, they can annihilate them, but in trying to do that, the victim’s life will be at risk. But that is the only method to make the business not lucrative to the kidnappers. However, that would mean that the death toll and fatality on the side of the victims will be high. That is the only means of discouraging this thing.”
