May 07, 2019 / 11:34AM / By Francis Arinze Iloani of Daily Trust Newspaper
The Nigerian Financial Intelligence Unit (NFIU) has barred banks from allowing transactions from State Joint Local Government Accounts (SJLGAs) without monies first reaching a particular local government account.
A statement issued in Abuja on Monday by the Acting Chief Media Analyst of the NFIU, Mr. Ahmed Dikko, said from June 1, 2019, any bank that flouts the directive will be sanctioned 100 per cent locally and internationally.
The NFIU said a new set of guidelines to reduce crime vulnerability created by cash withdrawals from local government funds throughout Nigeria has been released to Central Bank of Nigeria, Economic and Financial Crimes Commission, Independent Corrupt Practices Commission and Chief Executive Officers of all banks and financial institutions.
The Unit said the joint account system was meant “as a collection account,” meaning that “the amount standing to the credit of the local government councils of a state shall be distributed among the local government councils of that state” and not for other purposes.
“Cash withdrawal and transactions from State Joint Local Government Accounts poses biggest corruption, money laundering and security threats at the grassroots levels,” the statement stated.
The NFIU said the latest move is to uphold the full provisions of section 162 (6) (8) of the 1999 Nigerian Constitution as amended the joint account is for collection purpose.
“As far as the NFIU is concerned, the responsibility of the account as a collection account is fully reinstated,” the Unit said.