NFIU Bans Cash Withdrawal From Govt Accounts

The Nigerian Financial Intelligence Unit (NFIU) has banned cash withdrawals from accounts belonging to the Federal Government, all its agencies, states and local governments.

The agency also announced new guidelines for compliance by all financial institutions, non-financial institutions, public officials, and foreign missions amongst others in the country.

NFIU said the measure would take effect from March 1, 2023, and that any government official that withdraws cash from public accounts would be investigated by the Economic and Financial Crimes Commission, the Independent Corrupt Practices and Other Related Offences Commission (ICPC), and the Nigeria Police Force in collaboration with the NFIU, depending on the gravity of the situation.

It explained that the guidelines and enforcement are to curb money laundering, terrorism financing, proliferation of weapons and prevention of other criminal activities facilitated by cash.

The agency future explained that the enforcement and guidelines are in compliance with the provisions of Section 2 (Cash transaction outside financial institutions limit), Section 13 (Use of new products, business practices and new technologies) of the Money Laundering (Prevention and prohibition) Act, 2022, and section 26 (Seizure and detention of cash) of the proceeds of crime (Recovery and management) Act, 2022.