The guidelines barring State Governors, Ministers, Foreign missions and other public servants from making cash withdrawals from public accounts will come into effect from today.
Banks have notified their customers about the directive, and urged them to use digital channels.
A source at the Nigerian Financial Intelligence Unit, (NFIU), said the agency was in touch with 167 countries through the ESW a secured network in which all the 167 Egmont group member countries share information. It was gathered that the 167 countries are now on the lookout for any governor, minister and other public officials who withdraw cash from public accounts as from today, March 1.
The NFIU has activated the Egmont Secured Web (ESW) protocol to share information with the countries if any governor is flagged for money laundering. Also included are accounts of foreign missions operating in Nigeria, those of all development partner institutions, mutual funds and investment funds. It said: Cash withdrawals from public accounts would be treated as a money laundering offence.
NFIU warned that any governor who breaches the law by withdrawing cash from government accounts will automatically be flagged and 167 countries would be notified.
It was learnt that Ministries, Departments and Agencies (MDAs) are bracing for the shift to a cashless government. Cash withdrawals from public accounts will be prohibited, as well as the payment of estacodes and overseas allowances to civil and public servants in cash. Also prohibited is the local governments N500, 000 cash withdrawal limit for public accounts and instituted funds.
The NFIU said it became necessary to stop the rate at which cash was being taken out of public accounts without recourse to the money laundering laws and sometimes for corrupt purposes.
