Money laundering: Senate may ban cash payment above N5m


THURSDAY, 01 JULY 2010 01:20      


The Senate on Wednesday commenced consideration of the Money Laundering Act (Repeal and Re-enactment) Bill 2010 making it illegal for any person or corporate body to make or accept cash payments exceeding N5 million and N10 million, respectively.


The Senate, which considered the report of its Committee on Drugs, Narcotics, Financial Crimes and Anti-Corruption headed by Sola Akinyede, said such transactions could only be made through a financial institution. Although the committee had recommended N500,000 in the case of an individual and N2 million for a corporate body, senators felt that the amount was too small and increased it to N5 million and N10 million.


“No person or body corporate shall, except in a transaction through a financial institution, make or accept cash payments of a sum exceeding N5 million in case of an individual and N10 million for body corporate. “Transportation of cash or negotiable instruments in excess of 10,000 dollars or its equivalent by individuals in or out of the country shall be declared to the Nigerian Customs Service,’’ it added.


The Senate also adopted the report of the committee which rejected a clause requesting that transfer of funds or securities to or from a foreign country by a person or body corporate in excess of 10,000 dollars be reported to the CBN or the Securities and Exchange Commission (SEC).


Most senators had argued that it would be difficult to monitor such transactions and should be left alone for the banks to determine.The upper chamber would resume the consideration of the Bill on Thursday.





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