Comparative Guides

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4. Results: Answers
Financial crime
What provisions govern money laundering and other forms of financial crime in your jurisdiction and what specific implications do these have for fintech companies?

Answer ... The following laws generally govern money laundering and financial crimes in Nigeria:

  • the Money Laundering (Prohibition) Act, 2011 (as amended);
  • the Corrupt Practices and other Related Offences Act, 2000;
  • the Advance Fee Fraud and other Fraud Related Offences Act, 2006;
  • the Banks and Other Financial Institutions Act, 1991 (amended in 2002);
  • the Central Bank of Nigeria Anti-Money Laundering/Combating the Financing of Terrorism Regulations, 2013;
  • the Money Laundering (Prohibition) Act, 2011 (as amended);
  • the Terrorism Prevention Act, 2012 (as amended);
  • the Terrorism Prevention (Freezing of International Terrorist Funds and other Related Matters) Regulations, 2013;
  • the Economic and Financial Crime Commission (Establishment) Act 2004; and
  • other international instruments (eg, the Financial Action Task Force Recommendations; United Nations Security Council resolutions).

Although there are no laws specifically designed to regulate money-laundering activities conducted through fintech platforms, certain provisions in the above laws may have specific implications for fintech businesses, as they apply to financial institutions generally.  For instance, fintech companies must take appropriate steps to identify, assess and understand their money-laundering risks for specific customers, countries and geographical areas of operation. They are also required to report suspicious fund transfers and comply with the Central Bank of Nigeria’s know-your-customer requirements.

For more information about this answer please contact: Davidson Oturu from AELEX