NFIU bars cash withdrawals from govt accounts, says Nigeria’s economy becomes cashless by March 1
NEWS DIGEST – The Nigerian Financial Intelligence Unit, NFIU, has prohibited the federal, state and local governments and their agencies from conducting any cash withdrawals from their accounts in any financial institutions across the country.
Addressing a press conference in on Thursday in Abuja, NFIU Director/CEO, Modibbo Hamman-Tukur, disclosed that effective from March 1, 2023, no government official would be allowed to withdraw any cash from public accounts.
According to him, the payment of estacodes and overseas allowances to civil and public servants in cash is also prohibited.
He said: “The NFIU noticed in the process of its financial transactions analysis that civil servants are becoming more and more vulnerable to money laundering and its predicate offences due to their exposure to cash withdrawals from public accounts.
“According to NFIU analysis covering the period 2015 to 2022 (Annex 1), the Federal Government withdrew N225.72 billion cash, State Governments withdrew N701.54 billion cash, and Local Governments withdrew N156.76 billion cash.
“The cash withdrawals directly contravene the provisions of the MLPPA, 2022 and the Proceeds of Crime (Recovery and Management) Act, 2022 (POCA, 2022) which provide the legal framework setting limitations on cash transactions and sanctions for infringement of the provisions.”
Mr Hamman-Tukur noted that the directive is aimed at establishing a clear audit trail and mitigating corruption and other vices in public expenditure.
The NFIU boss added that the new policy would also support law enforcement and the entire criminal justice system by strengthening transparency in investigations.
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“There is nothing in these guidelines to suggest or indicate there is reason to compel or warrant a public official at federal, state and local government to go to a financial institution to withdraw cash.
“In the unlikely event that a public official feels he may need cash withdrawal, he may apply for approval for waiver from the Presidency which may be granted on a case-by-case basis.
“Under no circumstance, shall any category of public officers be given a standing or continuous waiver to withdraw cash from any public account in any financial institution or designated non-financial institution,” Mr Hamman-Tukur stressed.
The NFIU boss further disclosed that the new guidelines include all foreign Missions operating in Nigeria and accounts of all development partner institutions.
Others are the accounts of all instituted funds in form of independent funds to be operated as mutual funds such as insurance funds, cooperative funds, brokerages funds, political party funds or pressure group/union funds, “once the funds are designated to exist as funds or to operate independently for management and/or investment”.
Speaking on sanctions, the NFIU helmsman stressed that any cash withdrawals from public accounts would be treated as a money laundering offence.
He said: “Any individual or corporate body who violates the provisions of these Guidelines 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 offence. Also, it is hereby provided that any public officer or any citizen who comes into contact with the provisions of these Guidelines with its attendant principles shall as a matter of obligation promote the implementation and success of the Guidelines.”
