As part of its fresh move against money laundering, the Federal Government has enforced a fine of N1m per day for any financial institution or non-financial business and profession that fails to report any suspicious transaction.

This is according to the Money Laundering (Prevention and Prohibition) Bill, 2022, which President Muhammadu Buhari recently assented to and passed into law.

In Section 7 of the Act, which was titled ‘Suspicious transaction reporting’, it was stated that a suspicious transaction could be any transaction that involves an unjustifiable or unreasonable frequency.

It also involves any transaction surrounded by conditions of unusual or unjustified complexity, appears to have no economic justification or lawful objective or is inconsistent with the known transaction pattern of the account or business relationship.

The Act added that a suspicious transaction could also be any transaction, which in the opinion of the financial institution or non-financial business and profession, involves the proceeds of criminal activity, unlawful act, money laundering or terrorist financing.

Section 7(10) of the Act read in part “A financial institution or designated non-financial business and profession which fails to comply with the provisions of subsections (1) and (2) of this section commits an offence and is liable on conviction to a fine of N1m for each day during which the offence continues.

Credit: Punch

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