CURRENCY CONVERSION (FREEZING ORDERS) ACT
Act · Security
An Act empowers the Federal Government to issue freezing orders on suspected unlawfully held foreign currency. It targets holders of foreign currency accounts and banks implementing these orders. This prevents the flight of illicit funds and preserves assets for forfeiture.
CURRENCY CONVERSION (FREEZING ORDERS) ACT
What Is This Policy?
An Act empowering the Federal Government to issue freezing orders on foreign currency holdings suspected of being unlawfully held or associated with economic offences.
Who Does It Target?
Holders of frozen foreign currency accounts CBN and commercial banks implementing freezing orders The Attorney General of the Federation EFCC and security agencies investigating financial crimes
What Does It Aim to Achieve?
Prevent flight of unlawfully acquired foreign currency and preserve assets for potential forfeiture in financial crime proceedings.
Key Features
Freezing Power: Federal Government may order the freezing of foreign currency held in Nigerian banks where there is reasonable suspicion of unlawful origin. Bank Compliance: Banks must implement freezing orders immediately and report compliance to the issuing authority. Judicial Review: Account holders may apply to court to lift or challenge freezing orders. Duration: Orders remain in force until lifted by government or discharged by a court.
Current Status
Rollout Stage: Active Coverage: All Nigerian banks holding foreign currency Beneficiaries: Anti-corruption enforcement; asset recovery Funding: Federal Government
How to Access
Account holders subject to freezing orders may apply to court for relief Banks must refuse all transactions on frozen accounts Third parties with legitimate claims may apply to court Application method: Freezing orders issued by the AGF; judicial challenge at Federal High Court.
Important Terms
Operating a frozen account constitutes a criminal offence Freezing does not constitute guilt but preserves evidence and assets Interest accrues during the freeze period
Official Resources
Website: https://www.agf.gov.ng Contact: Office of the Attorney General of the Federation
Legal Framework
Enacted under the legislative powers of the National Assembly as the Currency Conversion (Freezing Orders) Act (Cap C45 LFN 2004). Operates alongside the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act, the Central Bank of Nigeria Act 2007, the EFCC (Establishment) Act 2004, and the Money Laundering (Prevention and Prohibition) Act 2022. Aligns with FATF Recommendations on targeted financial sanctions.