The Economic and Financial Crimes Commission (EFCC) has delivered a firm caution to Bureau De Change (BDC) operators and other business figures, stressing the urgent need for strict compliance with financial laws and regulations to prevent illegal transportation of cash across Nigeria’s borders.

According to Section 3(3) of the Money Laundering (Prevention and Prohibition) Act, transporting cash exceeding $10,000 without proper disclosure remains illegal. Additionally, Section 18 obliges BDC operators to report suspicious transactions to the Nigeria Financial Intelligence Unit (NFIU). Addressing participants at a joint sensitization forum in Kano on Saturday, EFCC Executive Chairman, Ola Olukoyede, highlighted the dangers of illicit financial flows, with a particular focus on money laundering, terrorism financing, and systemic corruption.

The event, organized in partnership with the Nigeria Customs Service (NCS) and the Independent Corrupt Practices and Other Related Offenses Commission (ICPC), sought to enhance awareness about the legal framework controlling the movement of funds across Nigerian borders.

Reinforcing Financial Compliance to Tackle Money Laundering

Represented by the EFCC’s Kano Zonal Director, CE Ibrahim Shazali, Olukoyede underscored the serious consequences awaiting those who fail to comply with financial regulations. He warned that unchecked illegal cash movement could seriously undermine Nigeria’s economic security.

Olukoyede reaffirmed that individuals carrying cash above the $10,000 threshold—or its equivalent in any currency—must declare it to the Nigeria Customs Service. Failure to make such a declaration constitutes a criminal offense punishable under Nigerian law.

To bolster enforcement efforts, he outlined several relevant legal instruments, including the EFCC Act of 2004, the Money Laundering (Prevention and Prohibition) Act of 2022, and the Central Bank of Nigeria (CBN) guidelines on cash transactions.

“Nigeria has signed multiple international conventions against money laundering, and in line with these commitments, we have developed robust regulations to monitor cash inflow and outflow. The CBN Act, the Money Laundering Act, and the EFCC Act all detail the obligations and penalties relating to cross-border cash movements,” Olukoyede stated.

Despite these regulatory measures, he lamented that many travelers—businesspeople, religious pilgrims, and tourists—still engage in illegal cash transportation, either due to ignorance or deliberate evasion of scrutiny.

Stiff Penalties for Offenders

Olukoyede made it clear that violators of these regulations could face a range of harsh consequences, including significant fines, prison terms, and the forfeiture of assets.

He assured participants that the EFCC, working in tandem with the Nigeria Customs Service, the ICPC, and other relevant agencies, would pursue offenders vigorously to protect Nigeria’s financial system from exploitation.

Throughout the sensitization session, officials from the NCS and ICPC echoed these concerns, urging all stakeholders—especially BDC operators—to commit to upholding the law by promptly reporting any suspicious financial dealings.

EFCC Appeals for Stronger Stakeholder Collaboration

In his closing remarks, Olukoyede appealed for collective action among financial institutions and business operators. He emphasized that compliance with anti-money laundering laws is not merely a legal requirement, but also a patriotic duty.

“Upholding financial transparency is essential for safeguarding our national economy. Compliance is non-negotiable. By working together, we can curb illicit financial flows and build a more resilient economy for Nigeria,” he asserted.

As authorities ramp up their efforts to dismantle financial crimes, the EFCC, along with the Central Bank of Nigeria (CBN), the NCS, and the ICPC, is determined to promote transparency and reinforce legal compliance across Nigeria’s financial landscape.

Important Updates on Forex Market Regulations

In a related move to enhance financial system integrity, the Central Bank of Nigeria, in February 2025, unveiled new foreign exchange (forex) guidelines aimed at regulating BDC operations more strictly.

Under the new policy, BDCs are permitted to purchase up to $25,000 per week from a single Authorized Dealer Bank (ADB) to cater to legitimate retail demands, including eligible invisible transactions such as travel allowances, school fees, and medical bills.

The CBN warned that any BDC operator found violating these weekly limits or sourcing foreign exchange from multiple banks would face immediate sanctions. This move is part of efforts to clamp down on speculative forex trading and strengthen oversight within Nigeria’s volatile currency market.

Furthermore, the CBN mandated that authorized dealer banks must sell forex to BDCs at the prevailing rates in the Nigerian Foreign Exchange Market (NFEM) window. By doing so, the CBN aims to ensure pricing consistency and reduce sharp fluctuations that contribute to market instability.