In Nigeria, investors who acquired shareholdings with fake names and unverifiable details will be forfeiting them to the Nigerian Securities and Exchange Commission, SEC.
The SEC also said it will prosecute subsequent perpetrators of such criminal acts. There are no figures of how much such shares are worth, however, sources close to the SEC said the value is in billions.
As quoted by a local newspaper, Punchng.com, Munir Gwarzo, Director General of the SEC said:
“Investors who juggled their names for the purpose of multiple subscriptions should be given a forbearance period of six months within which they can lay claims to both their shares and accruing dividends subject to establishment of their identity and a verification process by the SEC; failing which such shares and accruing dividends shall be transferred to the Nigerian Capital Market Development Fund”
The SEC said it is implementing an identity technology system that will match all investors with their holdings on the Nigerian Stock Exchange. Gwarzo buttressed this proposed action that:
“The shares and accruing dividends of non-existent shareholders will be forfeited and transferred to the NCDMF also; and going forward, any person who engages in such act shall be prosecuted.”
It is suggested that the matching of shareholdings to actual investors will be done using the bank verification number, BVN. It is a unique number mandated for all bank accounts owners in Nigeria. The number is used to track all accounts, transactions, and other activities on banking and other financial services related deals by individuals and corporate entities.
All over the world, money launderers use the stock and securities market to either hide stolen funds and or make them legitimate.
