HUMAN rights activist and lawyer, Mr. Femi Falana, has described the new cash withdrawal policy recently introduced by the Central Bank of Nigeria (CBN) as illegal.
The apex bank had on December 6, directed deposit money banks and other financial institutions to ensure that weekly over-the-counter (OTC) cash withdrawals by individuals and corporate entities do not exceed N100, 000 and N500, 000, respectively, with effect from January 9, next year.
The policy has elicited varied reactions among Nigerians, with many describing the action as punitive.
In his reaction, Falana, in a statement said the cash withdrawal limit was “illegal and null,” as it contravenes provisions of Section 2 of the Money Laundering Act, 2022, which limits cash withdrawals by individuals and corporate entities to N5 million and N10 million, respectively.
Falana argued that since the Act has not been amended, the new CBN policy is illegal, insisting: “Since the Money Laundering Act, 2022 (which has fixed maximum cash withdrawal to N5 million) has not been amended, the limitation of cash withdrawal of not more than N20, 000 per day and N100, 000 per week fixed by the CBN is illegal, null and void in every material. We urge the Nigerian people to ignore the illegal announcement.
“However, we are compelled to call on President Muhammadu Buhari to direct the management of the CBN to withdraw the illegal guideline and stop announcing more policies that are designed to sentence poor citizens to more excruciating economic hardship.
Meanwhile, section 2 of the money laundering act 2022 states thus:
“(1) No person or body corporate shall, except in a transaction through a financial institution, make or accept cash payment of a sum exceeding- (a) N5,000,000 or its equivalent, in the case of an individual; or (b) N10,000,000 or its equivalent, in the case of a body corporate.
“(2) A person shall not conduct two or more transactions separately with one or more financial institutions or designated non-financial businesses and professions with intent to- (a) avoid the duty to report a transaction which should be reported under this act; and (b) breach the duty to disclose information under this act by any other means.”
