The Nigerian Senate has passed a bill to amend money-laundering regulations, including making it mandatory for lenders to report suspicious transactions, Bloomberg reported Wednesday (March 16).
Called the Money Laundering Prevention and Prohibition Act 2022, it requires lenders to report all single transactions worth more than 5 million naira, or $12,035, and those involving corporations over 10 million naira, to a Special Control Unit Against Money Laundering.
That panel is going to be part of the Economic and Financial Crimes Commission. Jail sentences will range from two to five years on individuals. Institutions breaking the law will face fines of as much as 50 million naira, with officials taking part potentially prosecuted.
Banks, institutions and businesspeople will, in addition, be legally required to “identify and assess the money laundering and terrorism financing risks that may arise in relation to the development of new products and new business practices.”
Read more: Cash Still King in Nigeria Despite Digital Drive
In other Nigeria news, PYMNTS wrote late last year that Nigeria has been seeing a drive to get more digital payments, though cash is still prevalent there.
Nigeria’s naira notes and coins circulating went up 4.6% last October compared to September.
Nigeria does have a new digital currency, which the Central Bank there wants to use to encourage digital payments. This would cut down on the cost of printing cash, and would promote financial inclusion.
See also: Swedbank in More Money-Laundering Legal Trouble
Money laundering has been a problem worldwide, and the Estonian unit of Swedbank is a suspect in a recent investigation, PYMNTS wrote.
This comes after a special white-collar crime investigator with the country’s Central Criminal Police notifying the bank that it had been summoned.
Estonian investigators have been looking into whether Swedbank was involved in money laundering and other criminal violations. The bank has been saying it’s cooperating with the officials.
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