Senate passes bill to amend Money Laundering Act
PRESS STATEMENT
Senate Passes Bill To Amend Money Laundering Act
The Senate on
Wednesday, March 16, 2022 passed a Bill to amend the Money Laundering Act
2011.
The passage of
the Bill titled, “Money Laundering (Prevention and Prohibition) Act 2022”, followed
the presentation of its report by the Committee on Anti-Corruption and
Financial Crimes for consideration.
The provisions
of the Money Laundering Bill 2022, makes it mandatory for Banks and other
Financial Institutions to report in writing to the Special Control Unit Against
Money Laundering under the Economic and Financial Crimes Commission (EFCC), any
single transaction or lodgment in excess of N5 million naira for an individual,
and N10 million in the case of a corporate body.
It provides in
Section 11(3) that, “any Financial Institution or Designated Non-Financial
Business and 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 N1 million for each day the contravention continues.”
In addition,
the provisions of the Bill in Section 12 prohibits the opening of numbered or
anonymous accounts in fictitious names and shell banks.
It provides
that any person or financial institution that contravenes the provisions of
Section 12 subsections (1), (2) and (3) commits an offence and is liable to
imprisonment of not less than two years and not more than five years in the
case of an individual; and a fine of not less than N10 million but not more
than N50 million for a Financial Institution, in addition to the prosecution of
the principal officers of the body and winding up as well as the prohibition of
its constitution or incorporation.
The provisions
of Section 13 further mandates financial institutions and designated
non-financial businesses and professions to identify and assess the money
laundering and terrorism financing risks that may arise in relation to the
development of new products and new business practices.
Chairman of the
Committee, Senator Suleiman Abdu Kwari (Kaduna North), in his presentation,
said the Bill seeks to repeal the institutional and legal framework on money
laundering prohibition in Nigeria.
According to
him, the amendment to the Money Laundering Act, would “provide effective and
comprehensive legal framework to re-invigorate the fight against money
laundering in the country by leaning more on prevention as a useful tool to
strengthen the existing legal regime in combating money laundering and other
related crimes in the country.”
He added that
the Re-enactment Bill provides appropriate penalties and expands the scope of
supervisory bodies to effectively address the challenges faced in the
implementation of anti-money laundering laws in Nigeria.
Sen. Kwari
explained further that, the Bill upon becoming law, would provide protection
for employees of various anti-graft institutions, and see to the establishment
of the Special Control Unit Against Money Laundering under the EFCC.
He said that the
unit when established, would be charged with the effective implementation of
the money laundering laws in relation to designated Non-Financial Businesses
and or Professions in Nigeria.
“The enactment
of this Bill will resolve the institutional issues regarding the establishment of
the Special Control Unit Against Money Laundering under the Federal Ministry of
Trade and Investment, being implemented by the EFCC.
“The Bill seeks
to introduce certain supervisory and enforcement mechanisms, through the
imposition of administrative penalties for breach of any requirement imposed by
law”.
The Bill was
passed into law by the upper legislative chamber after consideration by the
Committee of the Whole.
Signed:
Dr. Ezrel Tabiowo, FAI, FIMC, CMC, FCP, Fsca
Special Assistant (Press)
To President of the Senate
Wednesday, March 16, 2022.