- Management Trainee
This issue is a very biting one and of great significance to the public because it is of paramount importance to all and sundry.
Please Independent Advocate help find out from the Central Bank of Nigeria what the directives issued to banks for money laundering now in Nigeria.
It appears the business is becoming a lucrative one hence in almost all vacant walls in Lagos State, information on money laundering with telephone numbers of the Lenders boldly written on the walls on almost every street in Lagos State.
Only recently, I heard that there were directives to banks based on money laundering; how far this is true is not known to me.
Peradventure the information is true that the CBN has issues directives to banks on money laundering, then what are the directives if the information is something to write home about.
I am interested, please help me out.
Pa Donatus Idroyen
P.O. Box 44920
The issue of Pa Idroyen was taken up with the Central Bank of Nigeria Abuja, with a top official who craved anonymity.
The official did not hesitate to tell the Independent Advocate that he did not understand what the inquirer was talking about concerning money laundering, because according to the official, the money laundering meant by the apex bank is quite different from what the enquirer is insinuating in his letter to the Press.
He had this to say, “to the best of my knowledge, it is true that the Central Bank of Nigeria some months ago actually issued fresh directives to banks to comply with the amended anti-money laundering/combating the financing of terrorism regulation, 2009so as to align with money laundering Act, 2011 and terrorism Act, 2011.
To buttress his statement, the official produced a circular by the apex bank whereby the bank listed the sections of the AML/CFT that were amended as Section 1,15.2 Section 1.18.3 and Section 184.108.40.206.
It revealed “Financial institutions are required to investigate suspicious transactions and report their findings to the Nigerian Financial Intelligence Unit in the Economic and Financial Crimes Commission within seen days of the transaction, in compliance with
Section 6 (2) of MLPA 2011.”
“Financial institutions are required to report in writing any single transaction, lodgment or transfer of funds in excess of N5,000,000 and N10,000,000 or their equivalent made by an individual and body corporate respective to the NFIU in accordance with section 10 (1) of the MLPA 2011.
The document added that in compliance with section 2 (1) of the MLPA 2011 financial institutions are also required to render reports on transfers to or from a foreign country of funds or securities by a person or body corporate including a money service business of a sum exceeding $10,000 or its equivalent to the Central Bank of Nigeria, Securities and Exchange Commission and EFCC in writing within seven days from the date of the transaction.”
It added, “Further more, in compliance with section 14 of the Terrorism (Prevention) Act, 2011, financial institutions are required to, within a period of not more than 782 hours, forward the following reports of suspicious transactions relating to the NFIU-fund derived from illegal or legal sources but are intended to be used for any act of terrorism proceeds of a crime related to terrorism financing, proceeds belonging to a person, entity or organization as terrorists.”
It however noted that financial institutions are not statutorily liable for violation of confidentiality rules for every lawful action taken in furtherance of their obligations under the CBN AMI/CFT Regulations 2009, as amended.”
The circular also said that the details of a report sent by any institution would not be disclosed by the institution or any of its officers to any other person.
His words “ As you can see, what the CBN meant by “Money Laundering “ is quite different from what this enquirer wants to know about.
The official at this juncture advised the enquirer to be more specific in his enquiries and should be very careful not to fall into the hands of the fraudsters otherwise known as 419.
Pa Idroyen, please be careful in this area of money laundering advertised on various walls on the streets of Lagos, they are not real.