CHALLENGES OF THE INTERNATIONAL MONEY LAUNDERING PROHIBITION ACT ON THE FIGHT AGAINST CORRUPTION IN NIGERIA

AbstractThe International Money Laundering Prohibition Act (IMLPA) was introduced in Nigeria to tackleillegal financial activities, enhance transparency, and align with global anti-money laundering(AML) standards, including those set by the Financial Action Task Force (FATF) and the UnitedNations Convention against Corruption (UNCAC). However, despite these noble intentions, theAct has encountered ongoing challenges that undermine its ability to effectively combatcorruption. The study, guided by Deterrence Theory, which suggests that crime stems from rationalchoices and that the certainty, speed, and severity of punishment can deter criminal behaviorutilized a survey research design. From a target population of 21,482 individuals across keyinstitutions like the EFCC, ICPC, PCC, NFIU, NEITI, Code of Conduct Bureau, and TransparencyInternational, a sample of 377 was selected using Krejcie and Morgan’s (1970) table. The findingsreveal several significant hurdles. Weak institutional capacity, characterized by underfunding,limited training, and insufficient investigative tools, greatly hampers enforcement agencies suchas the EFCC and NFIU. Political interference, particularly the shielding of politically exposedpersons (PEPs), leads to selective prosecution and a culture of impunity. Moreover, the complexityof financial crimes, poor collaboration between agencies, and weak international cooperationcomplicate asset tracing and recovery efforts. Judicial inefficiencies, including delays in cases, alack of specialized courts, and procedural obstacles, further restrict enforcement capabilities.Nigeria’s predominantly cash-based economy, coupled with low financial literacy and weakcompliance from financial institutions, creates additional vulnerabilities that corrupt individualsexploit. The study concludes that to bridge the gap between Nigeria’s legal framework and therealities of enforcement, it is essential to strengthen institutional capacity, ensure genuine politicalwill, reform judicial processes, and enhance international collaboration. These insights are alsorelevant for other developing economies facing similar governance challenges. governance andenforcement challenges.Keywords: International Money Laundering Prohibition Act, Corruption, EnforcementChallenges, Nigeria, Anti-Money Laundering (AML)