Apart from breaching South African laws, the Nigerian government violated a number of key anti-money laundering laws in its botched attempt to buy arms and military equipment from South Africa with $9.3 million cash stacked in suitcases.
Two Nigerians and an Israeli were arrested at the Lanseria Airport in South Africa on September 5, 2014 as they tried to enter the country with the cash conveyed in a private jet owned by the President of the Christian Association of Nigeria, CAN, Ayo Oritsejafor.
Nigerian officials said the suspects were carrying out a "legitimate" transaction to procure arms for the country's military, and that South Africa had been given receipts and documents to prove the authenticity of the deal. South African investigators have faulted the claims, and last week, obtained a court order freezing the money. The Nigerian government's explanation was "flawed and riddled with discrepancies", they said.
An analysis of the deal shows how the Nigerian authorities, in choosing to procure arms with a huge sum in cash, blatantly flouted two important laws enacted to combat money laundering.
Section 2 of the Money Laundering (Prohibition) Act, 2011 clearly pegged the cash transfer allowed into a foreign country at $10,000 or its equivalent. The law stipulates that any cash transfer exceeding that limit must be reported to the central Bank of Nigeria, CBN, the Security and Exchange Commission, or the Economic Financial Crime Commission,EFCC within 7 days from the date of the transaction.