NFIU Responds to Governors' Criticism of Banning Cash Withdrawals from Government Accounts

The Nigeria Financial Intelligence Unit (NFIU) on Saturday expressed its willingness to engage the Nigerian Governors Forum (NGF) on its plan to stop cash withdrawals from federal, state and local government accounts.

The NFIU said so in a statement from its chief media analyst, Ahmed Dikko.

According to the statement, NFIU Director Moddibo Tukur said the unit was willing to work with the six-person committee set up by state governors to address their concerns about 'abnormalities' in the monetary management and financial system of the country.

"First, we are ready to partner with the 6-man committee they have put in place. We will enlighten them," the statement said, quoting Mr. Tukur.

The Financial Intelligence Unit said this in reaction to a statement by the NGF that the NFIU's recent advice and guidance on cash transactions fell outside the NFIU's legal jurisdiction and mandate.

Earlier this month, PREMIUM TIMES reported that the NFIU had set a deadline for cash withdrawals from the accounts of federal, state, and local governments and all of their ministries and departmental agencies (MDAs).

The unit said it would begin enforcing compliance from March 1, 2023, also pledging to crack down on offending officials who violated the directive after the end-February deadline.

He further explained that the prohibition of cash withdrawals from government accounts was necessary as the country's officials were becoming increasingly vulnerable to money laundering and related crimes.

The agency also said that more than 1 trillion naira in cash was withdrawn from government accounts (federal, state and local) between 2015 and 2022.

The NFIU stressed that its ban on cash withdrawals from all federal, state and local government accounts is within the scope of the law. He noted that he had issued the notice and guidance on cash transactions to control the barrage of investigations that was planned.

“Second, we acted within the scope of our duties and the law. We published the Guidelines to control the barrage of investigations that we saw coming. Our guidelines were intended to help governors, not to fight them or a civil servant. »

The agency further reminded the NGF that Nigerian banks had been fined millions of dollars by the US and UK FIUs for failing to comply with the new guidelines.

"But more importantly, we must understand that in the recent past, the US FIU and the UK FIU have penalized Nigerian banks with fines of millions of US dollars for non-compliance. internal, non-compliance with the articles cited in the recent directives is accompanied by heavy penalties for financial institutions. We have, under the pretext of a gentleman, avoided so far to impose a fine on financial institutions pending progressive learning and adjustments.

"But to guarantee this kind gesture eternally is automatically to continue to abuse our laws."

The NFIU and the NGF had both taken opposing views on the NGF's decision to uphold local government financial autonomy.

Read the full statement below

NFIU Responds to Governors Forum Statement:

When approached by reporters to respond to a statement issued by the chairman of the Nigerian Governors Forum regarding the guidelines...