Why CBN’s N20,000 Daily Withdrawal Is Illegal – Falana

Why CBN’s N20,000 Daily Withdrawal Is Illegal – Falana

Activist lawyer Femi Falana (SAN) has stated that the Central Bank of Nigeria (CBN) decision to set daily and weekly withdrawal limits of N20,000 and N100,000 for individuals beginning January 9, 2023 is illegal, null and void in all material respects.

He also stated that the CBN has directed Deposit Money Banks (DMOs) and other financial institutions to ensure that weekly over-the-counter (OTC) cash withdrawals by individuals and corporate entities do not exceed N100,000 and N500,000, respectively.

Falana stated that because the Money Laundering Act of 2022, which limits cash withdrawals to N5 million, has not been amended, the CBN’s limit of N20,000 per day and N100,000 per week is illegal.

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Falana, the Chair of the Alliance on Surviving COVID-19 and Beyond (ASCAB), stated this in a statement issued in Lagos titled “The maximum withdrawal limit in Nigeria is N5 million.”

The regulatory directives will go into effect across the country on January 9, 2023.

It limited the maximum cash withdrawal per week via ATM to N100,000, subject to a daily cash withdrawal limit of N20,000.

Falana urged Nigerians to disregard the erroneous announcement.

He also asked President Muhammadu Buhari to direct the CBN’s management to withdraw the illegal guideline and stop announcing new policies that will subject poor citizens to even greater economic hardship.

According to the senior lawyer, it is embarrassing that the CBN has been making announcements on the national economy without regard for the constitution or other relevant laws.

He expressed concern that the Governor of the Central Bank of Nigeria has allegedly imposed a limit on cash withdrawals in Nigeria, in direct violation of the Money Laundering Act.

According to him, section 2 of the Money Laundering Act, 2022 provides as follows: “2. (1) No person or body corporate shall, except in a transaction through a financial institution, make or accept cash payment of a sum exceeding (a)N5,000,000 or its equivalent, in the case of an individual or (b) N10,000,000 or its equivalent, in the case of a body corporate.

“(2) A person shall not conduct two or more transactions separately with one or more financial institutions or designated non-financial businesses and professions with intent to (a) avoid the duty to report a transaction which should be reported under this Act and (b) breach the duty to disclose information under this act by any other means.”

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