The problem of identifying suspect wealth in the financial system: focus on Nigeria

Abstract

The study’s main objective was to assess the problems of identifying suspect wealth in the financial system. The research methodology adopted for this study is a qualitative approach from an interpretive philosophical perspective. Data was collected and analysed from anonymous practitioners in the anti-financial crime value chain, which led to the formation of four focus groups, and the findings from each group were synthesised to reveal the overall findings across the value chain. The research methods used were a triangulation of primary data from Focus group discussions, observation of participants and field notes from law enforcement activities on the anti-financial crimes value chain. It was revealed that significant problems in identifying suspects’ wealth are third-party money laundering, trade-based money laundering, concealment of beneficial ownership, and excessive use of cash transactions to obscure illicit sources of funds. Identifying suspect wealth through the financial system is a novel study area with limited quantitative data. Therefore, the qualitative approach uses qualitative data to assess the problems of identifying suspect wealth from a Nigerian perspective. The sample used in this study did not consider employees of financial institutions; therefore, future studies should consider them. This study focused on problems of identifying suspect wealth through the financial system in Nigeria.