Blockchain and Artificial Intelligence: A Key Role in Africa’s Fight Against Illicit Finance
African Nations’ Fight Against Illicit Finance
Africa loses over $88 billion annually to illicit finance, a sum that could be used to fund critical infrastructure, education, or healthcare. This was revealed by Olanipekun Olukoyede, the head of Nigeria’s Economic and Financial Crimes Commission (EFCC), at the Pan-African Conference on Illicit Financial Flows and Taxation in Tunisia.
Blockchain and Artificial Intelligence: A Key Technology
Olukoyede emphasized the importance of technology in combating illicit finance in Africa. He identified artificial intelligence (AI), data analytics, and blockchain as the three key technologies that African nations can leverage to thwart the flow of illicit finance.
Blockchain Industry Leaders’ Call to Action
Blockchain industry leaders in Nigeria have long called on the government to adopt blockchain technology. While Nigeria leads Africa in blockchain integration, many feel the government can do more to harness its potential. Obinna Iwuno, the head of the Stakeholders in Blockchain Association of Nigeria (SiBAN), noted that blockchain can enhance transparency within the government, boosting accountability. Africa is estimated to lose $140 billion annually to corruption, and blockchain can help eliminate many of the loopholes corrupt officials exploit.
EFCC’s Stance on Digital Assets
Despite calling for blockchain adoption, Olukoyede has maintained an anti-digital asset stance. His agency has been at the forefront of this year’s ‘crypto’ crackdown, including the arrest and prosecution of Binance officials. Olukoyede has stated that digital assets have often been used in illegal activities, including terrorism funding.
The Importance of Enterprise Blockchain
In order for AI to work within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership. This allows data to be kept safe while guaranteeing the immutability of data.
Conclusion
The use of blockchain and artificial intelligence can play a key role in Africa’s fight against illicit finance. As African nations work together through the African Union’s Common Africa Position on Asset Recovery and cooperate with global partners, the region can recover stolen assets and prevent future losses. By adopting blockchain technology, African governments can enhance transparency and accountability, ultimately reducing corruption and illicit finance.
FAQs
Q: What is the extent of illicit finance in Africa?
A: Africa loses over $88 billion annually to illicit finance.
Q: What are the key technologies that can help combat illicit finance?
A: Artificial intelligence (AI), data analytics, and blockchain are the three key technologies that African nations can leverage to thwart the flow of illicit finance.
Q: What is the role of blockchain in combating corruption?
A: Blockchain can enhance transparency within government, boosting accountability and eliminating loopholes exploited by corrupt officials.
Q: What is the stance of the EFCC on digital assets?
A: The EFCC has maintained an anti-digital asset stance, citing concerns over the use of digital assets in illegal activities, including terrorism funding.
