…As NFIU moves to invoke Money Laundering and Prohibition Act
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Following this week’s ban on cash withdrawals from all federal, state, and local government accounts on heels of inexplicable disappearance of N701bn from public accounts in eight years, the Federal Government through the Nigerian Financial and Intelligence Unit (NFIU), has decided to tighten the noose on recalcitrant government officials by moving to invoke the Money Laundering and Prohibition Act on them.
This Act will see offenders going to jail for, at least, three years or paying a fine of N10m (or both), in the case of individuals; and a fine of N25 Million in the case of a body corporate.
According to the Nigerian Financial and Intelligence Unit (NFIU), Section 2 of the MLPPA, 2022 restricts cash payments of a sum exceeding N5 million (or its equivalent) for individuals, and N10 million or its equivalent for a body corporate.
Section 19 of the MLPPA, 2022 imposes a fine of, at least, N10 Million or imprisonment for a term of, at least, three years (or both), in the case of individuals; and a fine of N25 Million in the case of a body corporate.
“Section 26 of Proceeds of Crime (Recovery and Management) Act, 2022 (POCA, 2022) makes provision for the seizure and detention of cash over the prescribed amount under the law,” NFIU said.
The Director/CEO of NFIU, Mr. Modibbo Tukur, who disclosed this in Abuja on Thursday, said all government transactions as from March 1 would go cashless in line with the Central Bank of Nigeria monetary policy.
He said the application of the guidelines includes all foreign missions operating in Nigeria, accounts of all development partner-institutions, and the accounts of all instituted funds in form of independent funds to be operated as mutual funds, such as insurance funds, cooperative funds, and brokerage funds.
According to Tukur, cash withdrawal limit for local governments, the third tier of government, is N500, 000.
“These guidelines supersede and repeal the N500, 000 cash withdrawal limit of local government funds – and also, since it is for criminal purpose, supersedes the CBN’s regulation on cash withdrawal limit with regards to public accounts and instituted funds.
“Defaulters who withdraw cash from public accounts risk collaborative investigation by the Nigeria Financial Intelligence Unit (NFIU), Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and Other Related Offences Commission (ICPC),’’ he maintained./SHARE THIS
- Tags: Modibbo Tukur, NFIU