The Economic and Financial Crimes Commission (EFCC), has applauded the Central Bank of Nigeria’s decision to redesign and reissue larger denominations of the Naira, the country’s currency. During a news conference today, October 26, 2022, CBN Governor Godwin Emefiele stated that the apex bank had received President Muhammadu Buhari’s authority to resign and print new N200, N500, and N1000 notes that would go into circulation by December 15th, 2022.
In response to the development, the EFCC’s Executive Chairman, Abdulrasheed Bawa, described the apex bank’s move as “a well-considered and timely response” to currency management challenges that have negatively impacted the country’s monetary policy and security imperatives. “The EFCC, the CBN, and some other financial sector regulators have recently worked closely to determine how best to stabilize the country’s monetary policy environment.” “It is heartening that the CBN has shown courage in making this bold decision, which I believe will restore sanity to Nigeria’s currency management situation,” he said.
To ensure a smooth withdrawal of the old currency, he urged Nigerian financial services operators, particularly deposit money banks and bureau de change operators, to follow the rules established by the Central Bank of Nigeria. However, Bawa warned that the EFCC would monitor the procedure to ensure that it was not harmed by dishonest participants, currency speculators, and their BDC allies. He also urged banks to be aware of their reporting obligations and to refrain from assisting dishonest clients in using their system to launder suspected criminal proceeds.
The head of the EFCC also made note of how the goals that the CBN is trying to accomplish with the redesign and reissue of the higher denomination Naira notes were in line with those of the Money Laundering Prevention Prohibition Act 2022, which makes carrying out cash transactions over a certain amount of money illegal.
According to Section 2 (1) of the Money Laundering Act 2022 “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.”
The EFCC Chairman noted that the Commission had recently taken operational action against currency hoarders in major commercial cities of Nigeria and expressed optimism that the new currency measure would further boost Nigerians’ embrace of banking culture and encourage the acceptance of cashless transactions.
“It is, therefore, pertinent to issue this stern warning to Bureau de Change operators to be wary of currency hoarders who would attempt to seize this opportunity to offload the currencies they had illegally stashed away.”
The EFCC boss further indicated that the Commission would not attempt to bring to justice any financial services operator who violates current rules and regulations, noting that hoarders of currency quickly made their hoard available to criminal businesses.