A high-ranking Nigerian official has called for the adoption of blockchain technology and artificial intelligence (AI) to combat illicit financial flows (IFFs) in the country. The official, who spoke at a recent conference on financial crime, emphasized the need for innovative solutions to address the growing problem of IFFs, which are estimated to cost Nigeria billions of dollars annually.
Blockchain technology, with its decentralized and transparent nature, can be used to track and trace financial transactions, making it difficult for criminals to launder money or finance illegal activities. AI, on the other hand, can be used to analyze large amounts of financial data to identify patterns and anomalies that may indicate illicit activity.
The official noted that Nigeria has already made some progress in using technology to combat financial crime, citing the recent launch of a national blockchain strategy. However, more needs to be done to fully harness the potential of these technologies, the official said.
The official's call to action comes at a time when Nigeria is facing increasing pressure to address IFFs, which are a major obstacle to economic development and national security. The country is a signatory to several international agreements aimed at combating financial crime, including the United Nations Convention Against Corruption and the Financial Action Task Force (FATF) recommendations.
The use of blockchain and AI to combat IFFs is not without its challenges. There are concerns about the privacy and security implications of these technologies, as well as the need for technical expertise and infrastructure. However, the potential benefits of these technologies in tackling this global problem are significant.
Several countries are already exploring the use of blockchain and AI to combat IFFs. For example, the United Arab Emirates has launched a blockchain-based platform to track cross-border payments, while Singapore is using AI to detect suspicious transactions.
Nigeria, with its large and growing economy, has a critical role to play in the global fight against IFFs. By embracing innovative technologies such as blockchain and AI, the country can make significant strides in tackling this problem and safeguarding its financial system.
June 2024, Cryptoniteuae