As part of its resolve to increase electronic payment and curb money laundering in Nigeria, Banks will begin the implementation of a no cash withdrawal directive from Wednesday, March 1, 2023.
This directive bars governors, ministers, local government councils, foreign missions and other public officials from making cash withdrawals from public accounts. With this, banks have urged their customers to engage electronic channels for their transactions.
Investors King recalls that the Nigerian Financial Intelligence Unit (NFIU), in a circular on January 4, had directed all financial institutions to stop cash withdrawal in naira and foreign currency from public accounts at all levels.
Other accounts included are that of foreign missions operating in Nigeria, development partner institutions, mutual funds as well as investment funds.
NFIU noted that any cash withdrawal from public accounts would be regarded as a money laundering offence, adding that any governor or public official withdrawing from government accounts will be caught.
Investors King gathered that an Egmont Secured Web (ESW) has been opened and activated by the NFIU to monitor public accounts in the country.
This ESW is in connection with other 167 countries on the same platform to share information and notify themselves of any breach.
According to NFIU, the development will curb money laundering and corrupt practices among public officeholders as well as secure a cashless nation.
“Cash withdrawals from public accounts will be prohibited as well as the payment of estacodes and overseas allowances to civil and public servants in cash. Also prohibited is the local government’s N500,000 cash withdrawal limit for public accounts and instituted funds.
“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.
“The President will only consider requests for cash withdrawals from public accounts on issues dealing with the border, defence, securities or medical,” NFIU stated.