African Federal Government Urges Collaboration to Combat Money Laundering and Terrorist Financing
The African Federal Government stressed the urgent teamwork needed to combat money laundering, terrorist financing and secure the gaming industry from exploitation by cybercriminals.
The federal government emphasises the African gaming industry and highlights its importance in the country’s economic sector, but it is vulnerable to money laundering syndicates. To safeguard the potential of the gaming sector in Africa, they urge teamwork among all law enforcement agencies to secure the integrity of the online gaming industry. They stated that no efforts are exempted from accepting that the gaming industry faces various challenges. The Director-General of the National Lottery Regulatory Commission (NLRC), Lane Gbajabiamila, asserted, “The African gaming industry’s rapid expansion is marred with challenges that need urgent attention. However, it has great potential and has emerged as a crucial driver of economic growth and government revenue. It possesses the capacity to generate employment opportunities, attract foreign investments, promote tourism, improve income, technological advancements, and an increasing interest in gaming activities.”
According to Gbajabiamila, the gaming industry is showing rapid growth in Africa. It will generate employment, attract foreign investment, promote tourism, and demonstrate economic growth. That’s why African regulatory departments must collaborate and utilise this opportunity to boost the country’s economy and improve its international reputation. African countries should also create an environment that fosters innovation and encourages youngsters in the startups. This will enable them to take advantage of the opportunities blockchain technology presents. Furthermore, African countries should invest in research and development to ensure they are at the forefront of blockchain technology.
The president added that there is a chance that the gaming industry can be exploited for terrorist financing and money laundering, which demands strict laws to be put in place to prevent financial crimes and promote growth in the gaming industry. He stated, “In the same vein, terrorists can exploit this industry to finance their operations covertly. However, the gaming industry comes with risks, such as money laundering, which allows criminals to hide their illegally obtained funds by disguising them as legitimate winnings from gambling activities.” He also highlighted issues regulating the gaming industry, including the lack of synergy in the African states and the absence of robust AML screening procedures like in international countries. The president also enforces the urgent need for Know-Your-Customer (KYC) and anti-money laundering (AML) procedures, fostering information exchange between regulatory agencies, carrying out routine audits, and guaranteeing the reporting of illegal transactions.
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