Nigeria Financial Intelligence Unit Bans Cash Withdrawals From Government Accounts

The Nigeria Financial Intelligence Unit (NFIU) has imposed a ban on cash withdrawals from accounts belonging to the Federal, State, and Local Governments, as well as Ministries, Departments, and Agencies.

NFIU Director Moddibo Tukur announced, Thursday, that cash withdrawals from government accounts will no longer be allowed starting March 1, 2023.

According to Tukur, the only person with the authority to offer government officials waivers for withdrawing cash is the president. He went on to say that any government official who violates the law would be investigated by the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and other related offenses Commission (ICPC), and the Nigeria Police Force in collaboration with the NFIU.

"This is not reversible as we are only enforcing the law. As far as we are concerned, Nigeria will become a full non-cash economy by March 1, 2023, this year," he said, as per Punch.

Speaking further on the matter, Tuku said that the ban on cash withdrawal from government accounts was implemented to prevent civil servants from money laundering and other related offenses. He explained that, over the years, civil servants had been withdrawing cash from state governments' accounts in a way that made them more susceptible to these types of crimes.

N701 billion was withdrawn from state government accounts between 2015 and 2022, he said, while the local governments withdrew N156.76 billion.

The cash withdrawals directly go against the provisions of the MLPPA (2022) and the Proceeds of Crime (Recovery and Management) Act (2022). The two pieces of legislation provide the legal framework that sets limitations on cash transactions and sanctions for anyone who infringes on the provision, according to the NFIU Director.

Tukur further noted that the proposed move would slow the rate at which funds are extracted from public accounts; a process which he described as a blatant disregard of the laws against money laundering and, sometimes, corruption.

"It is hereby stated clearly that any individual or corporate body who violates the provisions of these Guidelines is in direct contravention of provisions of Section 2 of MLPPA, 2022, Section 13 of MLPPA, 2022, NFIU Act, 2018, and Section 26 of POCA, 2022, and their attendant principles and interpretations and will be liable to necessary prosecution and penalties from the effective said date. Cash withdrawals from public accounts would be treated as a money laundering offense," said Tukur, as reported by ZAWYA.