Report Any Deposits Above N5m to EFCC, Senate Tells Banks

Report Any Deposits Above N5m to EFCC, Senate Tells Banks

  • In a bid to combat the practice of money laundering in Nigeria, the national assembly has amended the Money Laundering Act 2011
  • The amended Act issues strict stipulations on financial, non-financial businesses and including professions alike
  • Banks and other financial institutions will be collaborating in the exercise as stipulated in the newly amended law

The upper chamber of the Nigerian legislature has passed a new bill urging banks to report any monetary deposits above N5 million to the Economic and Financial Crimes Commission (EFCC), Daily Trust reports.

The new bill was passed on Wednesday, March 16 as an amendment to the 2011 Money Laundering Act.

Report Any Deposits Above N5m to EFCC, Senate Tells Banks
The EFCC has been saddled with the responsibility to tail any individual or body that violates the new law. Photo Credit: (Guardian)
Source: Facebook gathered that the new amendment is also binding to other financial institutions and not limited to banks alone.

In the newly amended bill, financial institutions are urged to report deposited transactions of N5 million by an individual and N10 million for a corporate firm.

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Section 11(3) states:

“any financial institution or designated non-financial business and profession that contravenes the provisions of this section commits an offence and is liable on conviction to a fine of not less than N250,000 and not more than N1m for each day the contravention continues.”

Senate passes bill against pseudo bank accounts

Meanwhile, section 12 of the newly amended bill places an embargo on the operation and opening of pseudo-account and shell banks.

According to statutory provisions of the new bill, an individual risks 2 years or more than 5 years in prison if he/she violates the stipulations of sections 12 (1), (2), and (3).

However, in the case of a firm, the section also stipulates a fine of not less than N10m but not more than N50m will be paid as punishment for violation of the law and also the prosecution of the principal officer of the institution.

As amended in section 13 by the National Assembly, financial and non-financial outfits and professions are urged to have a mastery of the new provisions of the Money Laundering Act.

Electoral Bill: Senate declines Buhari's request for amendment

In a contrasting development, the upper chamber of the National Assembly has declined President Muhammadu Buhari's request to amend section 84(12).

This is coming after President Buhari signed the newly amended Electoral Act on Friday, February 25 after rejecting the bill numerous times.

Senators at the upper chamber voted against President Buhari's request for amendment during the plenary whilst it also stopped its second reading.

Electoral Act: Malami reacts to senate rejection for amendment

Meanwhile, the minister of justice, Abubakar Malami has also reacted to the rejection of the red chamber to the request of Buhari seeking amendment.

Malami said the federal government is looking at trying other options available to see how it can compel the National Assembly to amend the bill.

He however noted that there is no conclusive decision yet on how to go about it. He stated that deliberations are still ongoing.


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