Senate passes bill requiring banks to report deposits above N5m to EFCC

senate passes bill requiring banks to report deposits above n5m to efcc
senate passes bill requiring banks to report deposits above n5m to efcc

The Money Laundering Act of 2011 was amended by the Senate on March 16th. Senate passes bill requiring banks to report deposits above N5m to EFCC

Banks and other financial institutions must now notify the Economic and Financial Crimes Commission (EFCC) in writing of every single transaction or deposit over N5 million for a person and N10 million for a corporate entity.

Although Section 11(3) of the bill states that “any financial institution or designated non-financial business or profession that contravenes the provisions of this section commits an offence and is liable on conviction to a fine of not less than N250,000 and not more than N1m for each day the contravention continues,” the bill’s Section 12 forbids the opening of numbered or anonymous accounts in fictitious names and shell banks.

Senate passes bill requiring banks to report deposits above N5m to EFCC, Financial institutions and specified non-financial firms and professions are also required to assess the potential risks posed by new products or new business practises in terms of money laundering and terrorist financing.

Those who violate the provisions of Section 12 subsections (1), (2), and (3) face imprisonment of not less than two years nor more than five years for an individual, and a fine of not less than N10 million nor more than N50 million for a financial institution, as well as the prosecution of the body’s principal officers and the closure and prohibition of its constitution.