NigeriaTerrorism (Prevention and Prohibition) Act 2022, counter-financing of terrorism programmes and 24-hour reports of suspicious transactions to the Nigerian Financial Intelligence Unit
Terrorism (Prevention and Prohibition) Act, 2022, ss. 83 and 84
In force since .
An AI sector rules rule binding private bodies.
- Instrument type
- an act of a legislature
- Obligation class
- Reporting, Governance
- Audit expectation
- on_request
- Who audits it
- Regulator
As of .
What it requires
- It reaches you if you are a financial institution or a designated non-financial institution (section 83(1) and section 84(1)). Develop and implement programmes and strategies for combating the financing of terrorism, and keep a record of any complex, unusual large and unusual pattern of transaction which has no apparent economic or visible lawful source or purpose (section 83(1)).
- Keep a report detailing all the parties involved in such transactions, and make it available on request by the relevant agency (section 83(2)).
- Within 24 hours, forward to the Nigerian Financial Intelligence Unit reports of suspicious transactions relating to terrorism, terrorism financing or proliferation financing where there are sufficient reasons to suspect that the funds are derived from legal or illegal sources and are intended to be used for an act of terrorism, terrorism financing or proliferation financing, are proceeds of a crime related to terrorism, terrorism financing or proliferation financing, or belong to a person, entity or organisation considered as terrorist (section 84(1)).
These lines are LexLint's reading of the law's text, as of .
If you get it wrong
Criminal exposureYes
Criminal exposure note
A breach of the reporting duty is an offence under section 84(3), and a director, chief compliance officer or other employee is liable on conviction to imprisonment for a term of not more than five years, a fine of at least N5,000,000, or both.
Penalty structure
A financial institution or non-financial institution in breach is liable on conviction to a fine of at least N10,000,000 and N1,000,000 for every day the offence persists, the withdrawal of licence or forfeiture of assets of the institution, or all the prescribed penalties.
- Rule
- Per violation only
- As of
- Minimum
- 10,000,000
- Currency
- NGN
- Per violation unit
- Day
- Per violation amount
- 1,000,000
Over one month of continuous breach, NGN 30,440,000.
Who enforces it
Enforcement body
The Nigerian Financial Intelligence Unit, which receives the reports and imposes administrative sanctions where a breach was not intentional, in consultation with the regulator or self-regulatory organisation
What this law does
All financial institutions and designated non-financial institutions must develop and implement programmes and strategies for combating the financing of terrorism, and keep a record of any complex, unusual large and unusual pattern of transaction which has no apparent economic or visible lawful source or purpose.
A report detailing all the parties involved in a complex, unusual large or unusual pattern of transaction that has no apparent economic or visible lawful source or purpose must be kept and made available on request by the relevant agency.
A financial institution or designated non-financial institution must, within 24 hours, forward reports of suspicious transactions relating to terrorism, terrorism financing or proliferation financing to the Nigerian Financial Intelligence Unit, where there are sufficient reasons to suspect that the funds are intended to be used for an act of terrorism or terrorism financing, or proliferation financing, are proceeds of a related crime, or belong to a person, entity or organisation considered as terrorist.
A breach of the duty in section 84 of the Terrorism (Prevention and Prohibition) Act, 2022 to forward reports of suspicious transactions is an offence under the Act. A director, chief compliance officer or other employee in breach of section 84 is liable on conviction to imprisonment for a term of not more than five years, a fine of at least N5,000,000, or both fine and imprisonment.
A financial institution or non-financial institution in breach of section 84 is liable on conviction to a fine of at least N10,000,000 and N1,000,000 for every day the offence persists, the withdrawal of licence or forfeiture of assets of the institution, or all the prescribed penalties.
Where a breach of section 84(1) is shown not to have been intentional and adequate measures were in place to prevent it, the Nigerian Financial Intelligence Unit, in consultation with the regulator or the self-regulatory organisation responsible for the institution, imposes such administrative sanctions as it may consider necessary.
When LexLint raises it
When your app profile says your app provides financial services.