Financial Crime World

Title: New Money Laundering Law: Strengthening Nigeria’s Financial Crimes Regulations

Overview

The Nigerian Government has enacted the Money Laundering (Prevention and Prohibition) Act, 2022, consolidating comprehensive anti-money laundering (AML) regulations. This law, which replaces the Money Laundering Prohibition Act, No. 11, 2011, was published in the Federal Republic of Nigeria Gazette on May 12, 2022.

Key Provisions

Prohibition of Cash Payments

  • Individuals: N5 million ($12,500) transaction limit.
  • Bodies corporate: N10 million ($25,000) transaction limit.

Reporting International Transfers and Transportation of Funds

Financial institutes and DNFBPs must report international transfers, transportation of cash or securities exceeding US$10,000 to the Special Control Unit Against Money Laundering (SCUML) within 1 day of the transaction.

Identification of Customers

Financial institutions and DNFBPs must verify their customers, including the beneficial owners, with reliable, independent sources. Ongoing customer due diligence and transaction monitoring are essential for maintaining business relationships.

Prohibition of Anonymous or Shell Accounts

Opening or maintaining numbered, anonymous, or shell accounts is now disallowed.

Special Control Unit Against Money Laundering (SCUML)

SCUML, a department under EFCC, is responsible for supervising DNFBPs’ compliance with the provisions of the Act, relevant laws, and applicable regulations.

Offenses and Penalties

The Act outlines numerous offenses related to money laundering, including:

  • Conspiracy
  • Aiding and abetting
  • Failure to comply with reporting requirements

Penalties for these offenses include imprisonment, fines, and the withdrawal or revocation of certificates or licenses.

Objectives

The new law aims to:

  • Strengthen Nigeria’s legal and institutional framework against money laundering and related financial crimes.
  • Comply with global standards and recommendations of international organizations like the Financial Action Task Force (FATF).
  • Enhance Nigeria’s ability to combat money laundering and terrorist financing.