The Money Laundering (Prohibition) Act 2004 contains important provisions aimed at preventing money laundering, one of which is the limitation on the amount of cash payment.

Required:

State the limitation on the amount of cash payment under the Act.
(5 Marks)

Under the Money Laundering (Prohibition) Act 2004, the limitation on cash payments is as follows:

  1. Cash Payment for Individuals:
    The Act prohibits individuals from making or accepting cash payments of N500,000 or more in any transaction. Transactions above this limit must be done through a financial institution.
  2. Cash Payment for Corporate Bodies:
    For corporate entities, the Act restricts cash payments to N2,000,000 or more. Any payments above this threshold must be made via a financial institution.

These limitations are aimed at promoting transparency in financial transactions and reducing the risk of money laundering.