- 5 Marks
Question
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)
Answer
Under the Money Laundering (Prohibition) Act 2004, the limitation on cash payments is as follows:
- 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. - 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.
- Topic: Business Ethics and Corporate Governance
- Series: NOV 2015
- Uploader: Dotse