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ACC seeks charges against ex-head of FIU over MMPRC scandal

Shahudha Mohamed
02 July 2019, MVT 15:19
Former Head of Financial Intelligence Unit (FIU) at Maldives Monetrary Authority (MMA) Ibrahim Athif Shakoor. PHOTO: MIHAARU FILES
Shahudha Mohamed
02 July 2019, MVT 15:19

Anti-Corruption Commission (ACC) on Tuesday revealed that it filed at the the Prosecutor General's (PG) Office seeking charges against Ibrahim Athif Shakoor over negligence in the Maldives Marketing and Public Relations Corporation (MMPRC) graft.

At the time of the scandal, Athif was the Head of Maldives Monetary Authority (MMA)'s Financial Intelligence Unit (FIU), an independent unit tasked with receiving financial transaction reports from various institutions, analyse them and, as appropriate, disseminate valuable financial information to law enforcement agencies and regulatory authorities.

ACC is seeking to press charges against Athif for failure to report acts of corruption to Maldives Police Service despite FIU being informed of the embezzlement of state coffers.

When ACC submitted the case to PG Office in February this year, the commission was advised to file a case at Police, since there were grounds to determine violations of the Prevention of Money Laundering and Financing of Terrorism Act.

ACC lacks the authority to conduct investigations into cases of money laundering. As per the constitution, this power is invested in Maldives Police Service.

The corruption watchdog formerly submitted a case to FIU over a questionable transaction of MVR 59 million from MMPRC's accounts to SOF accounts, a company owned by acquaintances of former Vice President Ahmed Adeeb. ACC disclosed that details of the transactions were also submitted with the case.

Additionally, ACC stated that FIU was aware of MMPRC funds entering SOF accounts, following the commencement of investigations into the case.

FIU investigated ACC's submission and also prepared a report. ACC stated that during the investigation, FIU uncovered that MMPRC funds were transferred to various accounts of SOF established at different banks in the country.

The commission's report further stated that FIU's Head knew that the SOF transactions were an act of money laundering without doubt, and Athif himself admitted that FIU's investigative report should have been submitted to the police.

Noting that this was corruption, ACC is seeking to press charges against Athif for using the power of his position to enable a certain party to gain undue advantages.

Athif had stated in his statement to ACC that he informed the then-Governor of MMA Aishath Azeema that the suspicious transaction activity must be further investigated.

He further diclosed that Azeema refused to submit the case to Police citing the lack of staff in FIU at the time.

Azeema, however, denied these allegations.

According to her, Athif mentioned the 'Suspicious Transactions Report' submitted to FIU on November 27, 2014, after a meeting held at MMA, adding that she urged him to thoroughly investigate the matter.

FIU's negligence, as per ACC:

- FIU's investigation revealed that MVR 47 million was transferred to SOF accounts through eight separate transactions. However, no action was taken.

- SOF's tax filing and annual reports reveal that the company lacked the potential to carry out transactions of such large amounts.

- SOF received undue advantages as no action was taken to prevent the transfer of state funds to SOF accounts due to FIU's failure to report the acts of corruption to Police.

- ACC's investigation provied without a doubt that the then-FIU Head Athif decided against reporting the matter to authorities, as per his own confession and other evidence.

- FIU failed to report acts of money laundering with state funds to Police for further investigation.

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