Section 12 Money Laundering Act

Section 12 of the Money Laundering (Prevention and Prohibition) Act 2022 is about Prohibition of numbered or anonymous accounts, accounts in fictitious names and shell banks. It provides as follows:

(1) The opening or maintaining of numbered or anonymous accounts by any person, financial institution or body corporate is prohibited.

(2) A person shall not establish or operate a shell bank in Nigeria.

(3) A financial institution shall—
(a) not enter into or continue correspondent banking relationships with shell banks ; and
(b) satisfy itself that a respondent financial institution in a foreign country does not permit its accounts to be used by shell banks.

(4) Any person, financial institution or body corporate that contravenes the provisions of subsections (1), (2) and (3), commits an offence and is liable on conviction to

(a) in the case of an individual, a term of imprisonment of at least two years but not more than five years ; or

(b) in the case of a financial institution or body corporate, a fine of at least N10,000,000 but not more than N50,000,000, in addition to—
(i) the prosecution of the principal officers of the body corporate, and

(ii) the winding up and prohibition of its constitution or incorporation under any form or guise.

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