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money laundering

Q1347. I was informed that as an individual, I cannot transact a business while paying in cash the sum of N6,000, 000 or its equivalent; is this right?

Yes, except where the transaction is through a financial institution, you cannot make or accept cash payment of a sum greater than N5, 000, 000 (Five Million) as an individual or N10,000,000.00 (Ten Million Naira) or its equivalent in the case of a body corporate. Section 1 Money Laundering (Prohibition) Act 2011 (as amended)

Q1348. Are there duties imposed on the Casinos in preventing money laundering through their business?

Yes, in preventing money laundering, the casinos in Nigeria have the duty to;

  1. Verify the identity of a gambler, who buys, brings into or exchange chips or tokens by requiring the gambler to present an authentic document bearing his name and address.

  2. Record all transactions in chronological order. Such register shall be preserved for a period of 10 years after the last transaction was received. Section 4(1)(2) Money Laundering (Prohibition) Act 2011 (as amended)

Q1349. What is the offence of money laundering?

Any person who converts or transfer resources or property derived either directly or indirectly from illegal affairs for instance narcotic drugs or psychotropic substance, for the purpose of hiding or disguising the illegal origin of the resources or property or;

Any person who collaborates in hiding or disguising the true nature, origin, location, movement or ownership of the property or resources derived either directly or indirectly from illegal affairs (narcotic drug or psychotropic substances) shall be guilty of an offence and shall be liable on conviction to a term of imprisonment that is not less than 7 years, but not more than 14 years.

While in the case of a body corporate, a fine of not less than 100% of the fund and and the properties acquired as a result of the crime, withdrawal of its licence Section 15 Money Laundering (Prohibition) Act 2011 (as amended).

Q1350. My transfer of $12,000 Twelve Thousand Dollars to my USA based friend was reported to the Central Bank of Nigeria. Is this right?

Yes, it is right for your bank to report to the Central Bank of Nigeria of your transaction because it is in excess of $10, 000 (Ten Thousand Dollars) and made to a foreign country. The bank is obligated to report to the CBN a transfer in excess of $10, 000. Such report shall contain the nature and amount of the transfer, together with the name and address of the sender and receiver. Section 2 Money Laundering (Prohibition) Act 2011 (as amended)