The proposed cashless policy by the Central Bank of Nigeria will go a long way in curbing money laundering and also address crimes like drugs and human trafficking, terrorism, cross-border robbery and oil theft that are associated with money laundering, the group managing director, First City Monument Bank, Mr. Ladi Balogun has said.
Balogun, who delivered a lecture at the Kaduna Chamber of Commerce, Industry, Mines and Agriculture, KADCCIMA, Banking and Finance Trade Group dinner, said the cashless policy is based on cash-based transactions which stipulates a “cash handling charge” on daily cash withdrawals or cash deposits that exceed N500, 000 for individuals and N3, 000,000 for corporate bodies.
Balogun, who was represented by the bank’s executive director (north), Alhaji Adamu Nuru, said the policy would address the earlier mentioned crimes because perpetrators would find it difficult to easily move their loot or proceeds from the crimes outside the shore of the country without check.
He added that the intent of cashless is to reduce and not eliminate the amount of physical cash circulating in the economy, and encourage more electronic based transactions.
“The cashless policy, if properly implemented, will drive the development and modernization of Nigeria’s payment system leverage on this development to drive economic development, reduce the cost of banking services, provide financial inclusion by providing more efficient transaction options, improve the effectiveness of monetary policy in managing inflation and driving economic growth, reduce some of the negative consequences associated with the high usage of physical cash.
“Address anti-money laundering concerns by reducing the opportunities currently being exploited in cash based transactions and drive the development of supporting infrastructure and increase job creation from the expansion of existing sectors of the economy.”
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