The NEWS has gathered that a money laundering investigation initiated by the Financial Intelligence Unit (FIU) now Financial Intelligence Agency (FIA) was reportedly compromised under the watch of former Director General, Edwin W. Harris, Jr. However, Harris has rejected the claim indicating that no money laundering investigation took place by him.
Mr. Harris, now Director General of GIABA, is said to have opened a money laundering investigation involving Kehinde Cecelia Efevoghor, former Managing Director of Mutual Benefits Assurance.
At the end of the investigation, Harris concluded in a communication to the Board of Directors of Mutual Benefits Assurance that Madam Efevoghor was disqualified to work in the financial system of Liberia.
In his June 9, 2021 communication, Harris requested the removal of Madam Evefedor as managing Director because she was a “High Risk Person” to money laundering and as such, she could not head any financial institution in Liberia including Mutual Benefits.
“The Financial Intelligence Unit of Liberia in keeping with its power write to inform you that it has reach a final conclusion that your Managing Director Madam Kehinde Cecelia Efevoghor has disqualified herself to work in the financial system of Liberia as a result of her unlawful activities in abusing the financial system in concealing the proceed of crimes and laundering huge sum of money out of Liberia,” Harris wrote the Board of Mutual Benefits.
Additionally, he told the Board of Directors: “The Financial Intelligence Unit over the past months had investigated the Managing Director and came to this conclusion based on the evidence in our possession that her activity is a classic and organized form of Money Laundering.”
Nearly a month later, Harris wrote another letter on July 5, 2021 informing the Board of Directors of Mutual Benefits through its Chairman, Ambassador Dew Tuan Wleh Mayson about the closure of inquiry against Kehinde Cecelia Efevoghor and clearing her of any wrongdoing, an action which is seen as gross violation of the Act establishing the FIU/FIA.
According to Harris’ July 5, 2021 communication, this is what he said: “After careful examination of the written responses and additional clarities provided to the inquiry from the FIU, FIU has bring to an immediate closure to the inquiry regarding suspicious activities of your Managing Director.”
The Financial Intelligence Unit Act of 2012 section 67.3 (c) clearly states that “Transmit any information derived from analysis or examination by the FIU to the appropriate domestic or foreign law enforcement authorities on a need to know basis, if there is reason to believe it is relevant to an investigation for a money laundering offense or terrorist financing or an offense involving criminal proceeds.”
This section is further modified in 67.3.10 of the FIA Act of 2022, which indicates that “Disseminate spontaneously or upon request, any information or intelligence packages derived from analysis or examination to competent authorities, which shall include the appropriate domestic or foreign law enforcement, prosecutorial, supervisory or other competent authorities, if there is reasonable grounds to suspect it would be relevant to an investigation, actual or suspected, for money laundering, terrorist financing, proliferation of weapons of mass destruction, associated predicate offenses and proceed of crime. This can include information concerning money laundering, terrorist financing, financing proliferation of weapons of mass destruction, associated predicated offenses, and proceeds of crime. Such dissemination shall be transmitted using secure, dedicated, and protected channels.
With these provisions, the FIU/FIA cannot initiate an investigation into a money laundering offense and clear the subject of those investigations with a written clearance.
Moreover, where the FIU/FIA believes an offense has been committed, it can disseminate the results of the analysis to a competent authority/Law Enforcement Agency for investigation into the matter. The FIU/FIA can also withhold the results of these analysis if it believes the suspicion is not weighty for dissemination, but not to even contact the subject of these analysis.
However, Harris reportedly violated these provisions of the law controlling the FIU/FIA when he communicated to the subject of the investigation on money laundering.
A financial intelligence expert told the NEWS when requested to provide further clarity on the decision of Mr. Edwin W. Harris. Jr., that the former Director cannot initiate an investigation and adjudicate the same investigation.
The expert explained that “Firstly, it is a grave violation for the FIU to speak to a subject of any intelligence gathered. In this case, the former Director General was wrong and even committed the offence of Tipping Off, which is punishable by law.”
It is believed that the reported violation by Harris could further expose the working of the FIU and the country at large if the matter is not properly handled by the Liberian government.
Madam Kehinde Cecelia Efevoghor, a Nigerian, has since left Liberia and could not be reached for comment.
In his response on Monday, April 1, 2024, Harris said “No money laundering investigation of the former MD of Mutual Benefit took place by me (Edwin Harris).”
He explained that under the Association Law of Liberia, the individual does not act rather it is the Institution that is, why the association law referred to institution as Artificial person.
Additionally, Harris stated that his time at the FIU was mostly policy, leadership and oversight not technical, “Investigation is technical and even if I was, it is the institution and not me as a person”
He mentioned that the FIU, in keeping with its power, has the rights and authority to conduct preliminary investigations, analyze suspicious transaction to the extend it deems.
“The Instance being discussed, the FIU carried out preliminary investigation after an analysis of what was seen as suspicious, give rise to a preliminary investigation by team of qualified officers. The analysis that gave rise to the preliminary investigation did not excuse the subject of wrongdoing but rather provided all of the elements that created doubt in the mind of those that did the analysis,” Harris noted.
He pointed out that FIU did not recommend the dismissal of the former Managing Director of Mutual Benefits nor found her guilty of Money laundering as the FIU has absolutely no powers to come down with guilty verdict except the court.
“Suspicion is not guilt. When the preliminary investigation took place and doubts are raised, it still become doubtful l(suspicious and not factual) until the evidence is convincing and shows wrongdoing or violation of the existing laws. Because it is the reputation of others at stake and also liability could lied if things are not based on facts and back by evidence that can stand the test of its validity in a legal proceedings,” the former FIU Boss stressed.
He further responded that under the laws of Liberia, beyond reasonable doubt is the test when it comes to criminal matters and when in civil matters it goes for the preponderance of evidence.
“When additional evidence on a matter that shows no intent of the element of violations of the laws, it becomes the most honorable thing to do by terminating the matter and allowing the person be as they were before the analysis and preliminary investigation. Hence, the FIU under my leadership has ABSOLUTELY NO REGRET and what was done was the most conventional, prudent and legal in preserving the sanity and professional integrity of the FIU,” Harris maintained.
He stated that there was no compromised during the investigation by FIU under his leadership.
“Unfortunately, you do not understand how the FIU works. Because a person is clear automatically means it was compromised? In order words, you are saying if you have any form of suspicion about anything even if overwhelming evidence was presented, the position should remain in the face of the mounting evidence.
The team and the officer that did work were convinced that the evidence was overwhelming and as such terminating the case was not only the right thing to do but demonstrated that public institutions do not go after people unjustly,” Harris claimed.
He maintained that FIU under his leadership has no regret clearing Kehinde Cecelia Efevoghor after the overwhelming evidence convinced all those on the panel and senior management.
On the issue of violating the Act establishing the FIU, this is what Harris had to say “Unfortunately, you have not stated the section of the act that was allegedly violated and where in the act that states that that staff should not have contact with anyone when they are conducting preliminary investigation. Investigations is a two-way streets that allow you to hear from the suspect to have solid grounds for intent, and other ingredients necessary for the prosecutorial process. Hearing from suspects in preliminary investigation is a form of due process that is anchored and fundamental to our law. So where is the violation?”
Copy of the letter attached as picture.
