Money Laundering (Prohibition) Act, 2011
The Money Laundering (Prohibition) Act provides the legal framework for the prevention and suppression of money laundering in Nigeria. Enacted in 2011, it criminalizes the conversion or transfer of proceeds of crime, establishes customer due diligence requirements for financial institutions, and provides for the establishment and operation of the Nigeria Financial Intelligence Unit.
Legal area: Law governing the regulation and operation of banks and financial institutions.
Year enacted: 2011
Full text: https://lawsofnigeria.placng.org/laws/money-laundering-prohibition-act.html
Key Provisions
- Section 1: Prohibition of money laundering
- Section 2: Prohibition of conversion or transfer of proceeds of crime
- Section 6: Customer due diligence requirements for financial institutions
- Section 10: Suspicious transaction reporting to the NFIU
- Section 15: Penalties for money laundering offences
- Section 18: Establishment and functions of the Nigeria Financial Intelligence Unit
Significance
The Act is Nigeria’s primary anti-money laundering legislation. It has been amended multiple times to strengthen provisions, most recently in 2022. Nigeria’s compliance with international anti-money laundering standards, including the Financial Action Task Force (FATF) recommendations, is largely governed by this Act.