Financial Crime World

Here is the rewritten article in Markdown format:

Nigeria Introduces Stringent Measures to Combat Money Laundering

Lagos, Nigeria - The Nigerian government has taken a significant step towards combating money laundering and terrorist financing by introducing a comprehensive framework for financial institutions and designated non-financial businesses and professions (DNFBPs).

Reporting Obligations

Under the new law, financial institutions and DNFBPs are required to report suspicious transactions within 24 hours of detection. This includes transactions that involve:

  • Unusual or unjustified complexity
  • Appear to have no economic justification
  • Are inconsistent with known transaction patterns

Due Diligence and Record-Keeping

Financial institutions and DNFBPs must conduct thorough due diligence on customers and maintain records sufficient for the reconstruction or review of each individual transaction for a minimum of five years. These records must be made available to regulatory authorities upon request.

Internal Procedures and Policies

The law mandates financial institutions and DNFBPs to develop and implement internal policies and procedures aimed at preventing money laundering, including:

  • Designating a compliance officer
  • Conducting regular training programs for employees
  • Centralizing information collection
  • Establishing an internal audit unit

Risk Assessment

Financial institutions and DNFBPs are required to undertake risk assessments for new products, business practices, and technologies before launching them. They must then take appropriate measures to manage and mitigate any identified risks.

Penalties

The Money Laundering Act provides for the prosecution of money laundering offenses, with penalties including:

  • Fines
  • Imprisonment
  • Revocation of corporate licenses

Individuals found guilty of money laundering may face imprisonment for up to 14 years, while corporate entities may be fined up to five times the value of the proceeds of the crime.

Compliance is Key

The Nigerian government has emphasized the importance of compliance with the new law, warning that failure to adhere to the requirements will result in severe penalties. Financial institutions and DNFBPs are advised to review their policies and procedures immediately to ensure compliance with the new measures.

Authors: Ifeoma Ezeribe and Tolulope Oguntade