Home Business Banking & Finance FG to reveal new withdrawal guidelines for govt accounts

FG to reveal new withdrawal guidelines for govt accounts

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The Nigerian Financial Intelligence Unit (NFIU) will on Thursday announce new guidelines on cash withdrawals from all government accounts.

Last month, the Director and Chief Executive Officer of NFIU, Mr Modibbo Tukur said that the unit was putting all measures in place to stop cash withdrawals from federal, state, and local government areas’ bank accounts.

He said: “Because of the consistent devaluation of the Naira and the introduction of a new naira policy, section one of the Money Laundering Prohibition Act is automatically activated”.

Tukur further stated that most cash withdrawals from government accounts including payments for estacode are often more than the cash withdrawal limit provided by the Money Laundering Act.

This, he said, exposed innocent public servants to be liable to imprisonment. He added that the NFIU is developing an advisory to the Secretary to the Government of the Federation, all governors, and local government council chairmen to direct all public servants to open domiciliary and naira accounts ahead of the commencement of the policy which becomes compulsory by law.

He also noted that governors and council chairmen will need to organise training for market men and women on how to use ATM and POS services, while refuting reports making the rounds that the NFIU will block the Federal Government’s accounts in January 2023.

In November 2022, The PUNCH also reported that the NFIU flagged suspicious transactions valued at over N150 trillion between January and March 2022, according to its ‘suspicious transaction report/suspicious activity report.’

The development followed an announcement by the Economic and Financial Crimes Commission and NFIU officials that they had intensified surveillance on campaign spending by political parties and their candidates ahead of this year’s elections.

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