The Federal Government, yesterday, said it is set to stop cash withdrawal from all federal, state, and local governments with immediate effect.
The Director/CEO, Nigerian Financial Intelligence Unit (NFIU), Modibbo Hamman Tukur, was said to have revealed this at a parley with the Chairman, Independent National Electoral Commission (INEC), Prof. Mahmud Yakubu, in Abuja, according to a statement.
“Because of the consistent devaluation of the Naira and the introduction of a new Naira policy, Section 1 of the Money Laundering Prohibition Act is automatically activated,” he said.
Tukur advised that rather than cash withdrawals, public officers are to open domiciliary accounts in foreign and local currencies ahead of the commencement of the new policy
He said the decision followed the observation that most cash withdrawals from government accounts including payments for estacode for public officials, are often in excess of the cash withdrawal limit provided by the Money Laundering Act, which exposes innocent public servants to being liable to imprisonment.
The statement also said the NFIU is already developing an advisory to the Secretary to the Government of the Federation (SGF), state governors and local government chairmen across the country, to direct all public servants in their employ to open domiciliary and Naira accounts ahead of the commencement of the policy which becomes compulsory by law.
Furthermore, governors and council chairmen are expected to organize training for market men and women on how to use the ATM and POS services.
The NFIU dismissed as false claims by uninformed individuals that it intends to block all federal government accounts by January 1, 2023.
The decision followed the observation that most cash withdrawals from government accounts, including payments for estacode for public officials, are often in excess of the cash withdrawal limit provided by the Money Laundering Act…
