Cashless policy 'will cut Nigerian money laundering'

Jan 31, 2012

Money laundering in Nigeria's financial system will be reduced by the introduction of a cashless policy, according to the Chief Executive of the Union Bank of Nigeria.

Money laundering in Nigeria's financial system will be reduced by the introduction of a cashless policy, according to the Chief Executive of the Union Bank of Nigeria.

Funke Osibodu said the move to a cashless approach will help improve Nigeria's standing in the global financial market, as the country was threatened with blacklisting due to not complying with anti-money laundering measures adopted by other nations, This Day reports.

She urged the Committee of Chief Compliance Officers of Banks in Nigeria to adopt the international standards at a recent meeting in Lagos, noting that while the move will have negative effects, these will be far outweighed by the positive aspect of cutting down illegal money activity.

Ms Osibodu noted banks and stakeholders must work together to tackle any potential problems brought about by the new policy, adding such an approach was successful when introducing offerings such as mobile and electronic banking and prepaid cards.

Mobile banking is growing in the nation and Business Day recently reported around 20 million Nigerians will utilise the technology over the next three years.ADNFCR-2976-ID-801279628-ADNFCR