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CBN warns against trafficking in foreign currencies

 emefiele

The Central Bank of Nigeria on Sunday expressed
concern over the high increase in foreign currency
trafficking across the country’s borders.
The bank, in a statement issued by its Director,
Corporate Communications Department, Ibrahim
Mu’azu, said such a practice negated Section 2
(subsections 3-5) of the Money Laundering
Prohibition Act of 2011.
Specifically, the subsections state, “Transportation
of cash or negotiable instruments in excess of
$10,000 or its equivalent by individuals in or out of
the country shall be declared to the Nigeria
Customs Service.
“The Nigeria Customs Service shall report any
declaration made pursuant to subsection 3 of this
section to the Central Bank of Nigeria.
“Any person who falsely declares or fails to make
a declaration to the Nigeria Customs Service
pursuant to section 12 of the Foreign Exchange
(Monitoring and Miscellaneous Provisions) Act,
F34, LFN, 2004 is guilty of an offence and shall be
liable on conviction to forfeit the undeclared funds
or negotiable instrument or to imprisonment term of
not less than two years or both.”
The statement urged those transporting cash or
negotiable instruments in excess of $10,000 in or
out of the country to declare them to the NCS,
noting that those affected would be expected to
provide evidence of payment of taxes and duties
related to the cash transaction.
The statement read in part, “The Central Bank of
Nigeria notes with concern the increasing
trafficking of huge sums of foreign currency
across our borders.
“The general public is hereby informed that upon
receipt of any notice of declaration from the
Nigeria Customs Service, the CBN will investigate
the source of the funds and seek justification for
the possession of such volume of cash to ensure
that no money laundering activity is involved.
Those affected will also be expected to provide
evidence of payment of taxes and duties related to
the cash transaction.
“For the avoidance of doubt, the general public is
hereby notified that the CBN (in collaboration with
other relevant regulatory and security agencies)
will promptly apply appropriate sanctions and
penalties for the contravention of the provisions of
this Act.”

Written by General Chan

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