MONEY LAUNDERING (PROHIBITION) (AMENDMENT) ACT, 2012

An Act strengthens Nigeria's anti-money laundering framework by lowering reporting thresholds and expanding the list of businesses subject to these rules. It targets banks, financial institutions, lawyers, accountants, real estate agents, and enforcement agencies. This aims to reduce money laundering risks and align with international standards.

What Is This Policy?

A 2012 amendment that strengthened Nigeria's anti-money laundering framework by lowering reporting thresholds, expanding the list of designated non-financial businesses subject to AML rules, and aligning with FATF recommendations.

Who Does It Target?

Banks and all regulated financial institutions Designated Non-Financial Businesses and Professions (DNFBPs): lawyers, accountants, real estate agents The Nigerian Financial Intelligence Unit (NFIU) EFCC and ICPC as enforcement agencies

What Does It Aim to Achieve?

Strengthen Nigeria's compliance with FATF anti-money laundering standards, reduce the risk of the financial system being used for money laundering, and improve suspicious transaction detection.

Key Features

Reduced Reporting Thresholds: Lowered the cash transaction reporting threshold to N5 million for individuals and N10 million for corporate bodies. DNFBP Coverage: Extended AML obligations to lawyers, accountants, estate agents, and dealers in precious metals. Beneficial Ownership: Enhanced requirements to identify the ultimate beneficial owners behind corporate customers. NFIU Strengthening: Updated NFIU's powers and reporting obligations.

Current Status

Rollout Stage: Active Coverage: All financial institutions and designated non-financial businesses Beneficiaries: Financial system integrity; counter-terrorism Funding: Compliance costs borne by regulated entities

How to Access

All regulated entities must implement AML programmes Train staff on AML/CFT requirements File suspicious transaction reports with NFIU Application method: AML compliance implemented internally; NFIU reports at https://www.nfiu.gov.ng

Important Terms

Cash transactions above N5 million (individual) must be reported Failure to report suspicious transactions is a criminal offence Tipping off suspects that a report has been made is illegal

Official Resources

Website: https://www.nfiu.gov.ng Contact: Nigerian Financial Intelligence Unit (NFIU) / EFCC

Legal Framework

The Money Laundering (Prohibition) (Amendment) Act 2012 amended the 2004 Act and is recognized under Section 315 of the 1999 Constitution as an existing law. It has been superseded by the Money Laundering (Prevention and Prohibition) Act 2022. The amendments aligned with the FATF 40+9 Recommendations (2003 version), the GIABA (Inter-Governmental Action Group Against Money Laundering in West Africa) mutual evaluation standards, and the UN Convention Against Transnational Organized Crime.