Senate yesterday passed the Anti-Money Laundering bill which has repealed the Money Laundering Act 2004 to strengthen legal frame work for the fight against money laundering and terrorism.

The law gives the Economic and Financial Crimes Commission (EFCC) the power to place bank accounts under surveillance, tap any telephone line or place it under surveillance, obtain access to any suspected computer system, obtain communication of any authentic instrument or private contract, together with all bank, financial and commercial records among others.

The bill was passed after the Senate considered report of its ad-hoc committee that took a second look at a report by the Standing Committee on Drugs, Narcotics and Anti-Corruption which considered the bill.

To guard against money laundering in line with the requirement of the Financial Action Task Force (FATF), the law prohibits financing of terrorist organisation and makes it mandatory on all financial institutions to report all international fund transfers in the excess of $10,000 to the Central Bank of Nigeria (CBN). Failure to comply within 7 days, defaulting banks are to pay a fine of N250, 000 per day and suspension, revocation or withdrawal of licensing authority as the circumstances may demand.

"Transfer to or from a foreign country of funds or securities by a person or body corporate including a money service business of a sum exceeding US$10,000 or its equivalent, shall be reported to the Central Bank of Nigeria and the Securities and Exchange Commission (SEC) in writing within 7 days from the date of the transaction," the bill provides.

The new law also makes provision to check cash inflow in and out of the country as "transportation of cash or negotiable instruments in excess of US$500 by individuals in or out of the country shall be declared to the Nigeria Customs Service. While a body corporate shall be required to provide proof of its identity by presenting its certificate of incorporation and other valid official documents attesting to the existence of the body corporate."

To further prevent money laundering, the new law provides for full disclosure of all transactions by financial institutions including "Mandatory disclosure by financial institutions to the commission in writing within 7 and 30 days respectively in any single transaction, lodgement or transfer of funds in excess of N5,000,000 or its equivalent, in the case of an individual or N10,000,000 or its equivalent, in the case of a corporate body.