N8.7bn Fraud Trial: Zenith Bank Compliance Officer Confirms Suspicious Transaction Report Filed on Ex-AGF Malami’s Accounts

In a significant development in the ongoing money laundering trial of former Attorney-General of the Federation (AGF) Abubakar Malami, his wife Asabe Bashir, and son Abdulaziz Malami, a compliance officer from Zenith Bank Plc has testified that the bank filed a Suspicious Transaction Report (STR) concerning transactions linked to the defendants. The testimony, delivered before Justice Joyce Abdulmalik of the Federal High Court in Abuja, underscores the critical role of financial institutions in detecting and reporting potential financial crimes under Nigeria’s anti-money laundering framework.

Key Testimony: The Role of Suspicious Transaction Reports (STRs)

Mashelia Arhyel Bata, the fourth prosecution witness called by the Economic and Financial Crimes Commission (EFCC), provided detailed evidence regarding the bank’s compliance procedures. Under cross-examination by defence counsel Adedayo Adedeji (SAN), Bata confirmed that while the transactions in question complied with Central Bank of Nigeria (CBN) guidelines, the bank nonetheless filed an STR. This distinction is crucial: compliance with routine banking regulations does not automatically negate suspicion of illicit activity. STRs are filed when a transaction appears unusual, lacks economic justification, or deviates from a customer’s known profile—regardless of technical compliance with standard banking rules.

Bata explained that any pattern of deposits or repetitive transactions deemed unusual must be escalated to the Nigerian Financial Intelligence Unit (NFIU). The NFIU is the national agency responsible for receiving, analysing, and disseminating financial intelligence to combat money laundering, terrorism financing, and other financial crimes. This process is mandated by the Money Laundering (Prohibition) Act, 2011 (as amended) and the Terrorism (Prevention) Act, 2011.

Practical Example: What Triggers an STR?

To illustrate, consider a scenario where a government official’s account receives multiple cash deposits just below the reporting threshold (e.g., N5 million each) over a short period. Even if each deposit is technically within CBN limits, the pattern may trigger an STR because it suggests an attempt to avoid detection—a practice known as “structuring” or “smurfing.” In Malami’s case, the prosecution alleges that large inflows into accounts linked to him and his family members followed such patterns, prompting the bank’s compliance team to file an STR.

Procedural Developments in Court

The trial, which began on 6 April, has seen three other prosecution witnesses testify before Bata took the stand. On 20 April, Bata began his evidence-in-chief, focusing on the large inflows into the defendants’ accounts. At the resumed hearing on Wednesday, defence lawyer Adedayo Adedeji (SAN) cross-examined the witness, seeking to establish that the transactions were legitimate and compliant with banking regulations.

During re-examination, prosecution counsel Jibrin Okutepa (SAN) sought clarification on the meaning of an STR. The defence objected, arguing that the witness had already provided clear testimony. However, Justice Abdulmalik overruled the objection, citing Section 215(3) of the Evidence Act, which permits re-examination to clarify issues arising from cross-examination. Bata then elaborated that STRs are mandatory reports filed to the NFIU when a financial institution suspects that funds are linked to criminal activity, regardless of the transaction’s apparent legality.

Broader Context: The Charges and Allegations

The defendants face 16 counts of money laundering involving N8.7 billion, which the EFCC alleges are proceeds of unlawful activities committed between 2015 and 2025. The prosecution claims that the funds were moved through multiple bank accounts, corporate entities, and high-value property acquisitions in Abuja, Kano, and Kebbi states. The charges include conspiracy to conceal, disguise, and retain proceeds of crime.

Malami, who served as Nigeria’s chief law officer from 2015 to 2023 under former President Muhammadu Buhari, is also facing separate asset forfeiture proceedings involving properties valued at nearly N213 billion in Abuja, Kano, Kaduna, and Kebbi states. Additionally, the federal government arraigned Malami and his son on 3 February on gun charges, further complicating their legal exposure.

Why This Case Matters

This trial is a landmark test of Nigeria’s anti-corruption framework. It highlights the tension between the presumption of innocence and the need for robust financial oversight. The involvement of a former AGF—the nation’s top law enforcement officer—raises questions about accountability at the highest levels of government. The case also underscores the importance of STRs as a frontline tool in detecting financial crimes, even when transactions appear technically compliant.

Background

What’s Next?

After Bata’s testimony, the witness was discharged with no further questions from any party. Justice Abdulmalik adjourned the matter until 22 May for continuation of trial. The EFCC is expected to call additional witnesses, including forensic accountants and investigators, to trace the flow of funds and link them to specific properties and accounts.

For readers following this case, key points to watch include:

• Evidence from the NFIU: The STR filed by Zenith Bank will likely be a central piece of evidence. The NFIU’s analysis of the transactions could reveal patterns indicative of money laundering.
• Defence Strategy: The defence may argue that the STR was filed as a precautionary measure and does not prove criminal intent. They may also challenge the credibility of the bank’s compliance procedures.
• Judicial Precedent: The court’s interpretation of what constitutes “suspicious” under Nigerian law could set a precedent for future cases involving high-profile defendants.

READ ALSO: N8.7bn Fraud Trial: Banker testifies on inflows into accounts linked to Malami, family members

Conclusion

The testimony of Zenith Bank’s compliance officer marks a critical juncture in the trial of Abubakar Malami and his co-defendants. By confirming the filing of an STR, the witness has placed the spotlight on the bank’s internal controls and the broader regulatory framework designed to combat financial crime. As the trial progresses, the evidence presented will not only determine the fate of the defendants but also shape public confidence in Nigeria’s ability to hold powerful individuals accountable.

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