Liberia’s Offshore Accounts May Be At Risk Of Potential Compromise

The West African Journal Magazine is in possession of a document entitled Central Bank of Liberia (CBL) Offshore Accounts Funds Transfer Details which was easily found on a Miinistry of Finance  Revenue page.

Seal of Liberia
Seal of Liberia

The highly sensitive document details the Government of Liberia account information for the Federal Reserve Bank of New York and account details for Credit Suisse Bank in Zurich Switzerland. Details include routing numbers from each account and Swift Codes.

A Swift Code is an international bank code that identifies particular banks all over the work and it is also known as a Bank Identifier Code (BIC).Usually a Swift Code has 8 or 11 characters. West African Journal can confirm the following:

The GOL Swift Code for its Federal Reserve Bank of New York Account consists of 8 characters while that of its account at Credit Suisse consist of 11.

Federal Reserve Bank of New York
Federal Reserve Bank of New York

The Federal Reserve Bank of New York which, according to its website says, “As part of our core mission, we supervise and regulate financial institutions in the Second District. Our primary objective is to maintain a safe and competitive U.S. and global banking system…”

Building of Credit Suisse Bank
Building of Credit Suisse Bank

Credit Suisse based in Zurich, notes on its website that, “Our strategy is to be a leading wealth manager, with strong investment banking capabilities. We seek to follow a balanced approach to wealth management, aiming to capitalize on both the large pool of wealth within mature markets as well as the significant growth in wealth in Asia Pacific and other emerging markets. Founded in 1856, we today have a global reach with operations in about 50 countries and 46,840 employees from over 170 different nations.”

GOL Offshore Accounts
GOL Offshore Accounts

West African Journal Magazine cannot independently verify the offshore accounts document in its possession and has redacted identifiable information as a precaution and to protect the accounts of the Government of Liberia.

But a U.S. based Liberian financial expert with background and knowledge in and of the U.S. Banking and Financial sectors, who reviewed the off shore accounts document, termed them as “legitimate”.

It is unclear if the Government of Liberia through the Central Bank is aware of the exposure of this sensitive information and whether the information contained in its accounts are still valid.

POTENTIAL RISKS TO LIBERIA

Hacking: The exposure and access of the GOL Offshore accounts information are at risk of hacking by shady individuals and institutions who can then drain the entire account of the Government.

Default: The Government of Liberia is at risk of defaulting on payments  its local and international obligations, if its accounts are compromised.

Terrorism: Terrorists seeking access to funds for facilitate their operations could utilize Government of Liberia compromised accounts to wreak death and destruction against Liberians and allies,  including the United States and European countries.

Credit Risk: Liberia could face years of international credit denial and access to conventional loan facilities due to its poor banking systems and management.

Reputational Damage: Liberia’s image could be further tainted as a risk to the international banking and financial management systems to which Liberia’s banking systems are connected.

Mega Financial Loss: Liberia may lose its entire critical offshore revenue from its compromised accounts.

According to another financial expert whom West African Journal Magazine contacted to review the document, the GOL through the Central Bank is now under obligation to adopt sound practices to address the following areas which pose significant risks to the country’s financial systems and management regime.

  1. Establishment of an internationally acceptable an appropriate credit risk environment;
  2. CBL operating under an internationally acceptable sound credit granting regime;
  3. Installation of a new, credible and untainted Finance and Bank Management administration to begin develop international confidence and good will for Liberia and d
  4. Maintenance of the requisite credit administration, evaluation and strict monitoring process to ensure adequate controls at the Central Bank
Finance and Planning Minister Samuel Tweah
Finance and Planning Minister Samuel Tweah

It can be recalled that last December, a fraudster from Sierra Leone attempted to transfer millions of dollars out of the account of the Government of Liberia because he was able to trick the country’s Finance Minister Samuel Tweah into disclosing Government’s swift code and account information.

It is unclear how many senior government officials have system access, security, authority and clearance to Government’s Swift Code and Account information to avoid the potential for theft of Government’s offshore accounts.

Central Bank of Liberia Governor Nathaniel Patray
Central Bank of Liberia Governor Nathaniel Patray

The reputation of the CBL is in tatters following a series of damning scandals including the “missing billions”, the publication of incorrect financial information on its website and the arrest, detention and pending prosecution of some former and current officials for the roles in the “overprinting of banknotes” and the inability of the bank to account for missing monies.

The Kroll forensic audit indicted the CBL for having poor financial and record keeping systems.

Widespread corruption and lack of proper financial defense mechanisms have plagued the impoverished country Liberia for decades.

A second investigation has been ordered by the Liberian President into the “mop-up” exercise during which the country’s Finance Minister Samuel Tweah admitted that about $25 million USD was infused in the Liberian economy using untraceable and un-registered local money changers.

 

By Our Economic Correspondent in Monrovia

West African Journal Magazine