The Nigeria Central Bank will henceforth automatically deduct cash from banks that receive money that later turns out to be fraudulent in an effort to curb the illicit movement of cash.
The new law becomes effective this February and will see banks and fintechs in Nigeria forfeit cash to the state should they fail to vet the money that passes through their systems.
If a bank in Nigeria, for instance, receives 5,000 dollars that later turns out to be from proceeds of crime, even if the cash just passes through their system, the NCB will automatically deduct a similar amount without even alerting the bank.
Nigeria, for years, has become the capital of fraudulent activities and scammers who are not within and without Africa. Many Nigerians have been banned from visiting various countries due to fraud.
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Among the biggest drug dealers in Africa, Nigerians carry the trophy and their banks have been known to be one of the greatest facilitators of fraudulent money. The new rule, according to NCB, is expected to restore sanity within the banking sector in the country.
“We hope that these rules will help streamline our banking sector. We are becoming a country that is not trusted when it comes to finances, and the fact that our mainstream banking systems are becoming the main players in these fraudulent activities, it is important that we act now,” said an official from NCB who did not want to be mentioned because the matter is still under the carpet.
Stats currently show that Nigerian fraudsters have switched to using cryptocurrency to hide their digital footprints when carrying out their fraudulent activities. The Nigerian authorities are considering better ways to regulate crypto and reduce criminal activities for Nigerians both at home and in other countries.
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