BL – May 2018 – L1 – SA – Q9 – Law Relating to Banking

Identify the limit of cash payment or acceptance under the Money Laundering Act.

Question

The limit of cash payment or acceptance by a body corporate outside a financial institution under the Money Laundering (Prohibition) Act is
A. N1,000,000.00
B. N2,000,000.00
C. N5,000,000.00
D. N7,500,000.00
E. N10,000,000.00

Answer

Explanation:
The correct answer is E. N10,000,000.00. Under the Money Laundering (Prohibition) Act, 2011, a body corporate outside a financial institution cannot make or accept cash payments exceeding N10,000,000.00. This measure is intended to prevent the use of large cash transactions for laundering money, ensuring that significant transactions are conducted through traceable financial institutions.

Tags: Banking, Financial Law, Money laundering
Level: Level 1

Topic: Law Relating to Banking
Series: MAY 2018

Uploader: Theophilus