EFCC Money Laundering Law: Why Transacting Over ₦5m or ₦10m Daily Can Get You Into Trouble

Have you ever wondered if receiving or transferring large amounts of money could land you in trouble with the law—even if you're not a fraudster? Well, the EFCC’s Money Laundering (Prevention and Prohibition) Act, 2022 says yes, it could.

Many Nigerians don’t realize that transacting more than ₦5 million in a personal account or more than ₦10 million in a corporate account in one day could be flagged as suspicious. And in some cases, it may be treated as money laundering.

This blog post breaks down the law in simple terms so you don’t fall victim out of ignorance.

💸 What Exactly Is Money Laundering?

Money laundering is the act of disguising the origin of money that was obtained illegally—like through fraud, corruption, or other criminal activities. Once that money enters the banking system and looks "clean," it becomes harder for authorities to trace its criminal roots.

To prevent this, governments around the world—including Nigeria—have set strict limits on how money flows through the financial system.

📜 Understanding the 2022 Money Laundering Law

In 2022, the Nigerian government passed a new law to tighten the rules around large financial transactions. It’s called the Money Laundering (Prevention and Prohibition) Act, 2022, and it’s enforced by agencies like the EFCC and SCUML (Special Control Unit Against Money Laundering).

You must not receive or send more than ₦5 million in a personal account per day or more than ₦10 million in a corporate account per day—unless it is properly reported and documented.

⚠️ Why Is There a Daily Limit?

The aim is to:

• Detect and stop money from criminal activities.
• Prevent terrorism financing.
• Promote transparency and accountability in financial transactions.

Even if you're innocent, if you go over the daily limit without following proper procedure, your bank is legally required to report you.

🏦 What Counts as Suspicious?

You could be flagged for money laundering if:

• You receive ₦6 million or more into your personal bank account in a day.
• You transfer over ₦5 million from your personal account in a day—even in bits.
• Your corporate account exceeds ₦10 million in total in one day.

Whether it's one single transaction or multiple smaller ones, the total amount in a single day matters.

🧾 What Happens If You Break This Rule?

1. Your bank must file a report to the EFCC or SCUML.
2. You may be asked to explain the source of the money.
3. If your explanation is suspicious or inconsistent, you may be investigated.
4. In worst cases, you could be arrested and prosecuted.

🧑🏾‍💼 Real-Life Example You Should Learn From

Let’s say you’re a car dealer, and someone pays you ₦7 million into your personal account for a vehicle. If you didn’t alert your bank ahead of time or report it properly, and something goes wrong—like the buyer is later found guilty of fraud—your account becomes part of the investigation.

You may not be the criminal, but you could still be treated as a money laundering suspect.

🛡️ How to Avoid Falling Victim

• Don’t Use Personal Accounts for Business: Use a corporate account for any serious business.
• Avoid Splitting Payments: Breaking up ₦6 million into two ₦3 million payments is illegal structuring.
• Report Large Transactions: Inform your bank and file a Currency Transaction Report (CTR).
• Keep Clear Records: Invoices, contracts, receipts—everything should be documented.
• Use Licensed Financial Services: Avoid cash deals and use only registered banks or platforms.

❌ Things You Should Never Do

• Let others use your account to receive millions.
• Claim you didn’t know the law—it won’t save you.
• Receive huge funds without documentation.

🧠 Summary Table

📝 Final Thoughts

Nigeria’s new money laundering law isn’t just targeting Yahoo Boys or corrupt politicians. It targets any large transaction that seems suspicious or is not properly reported.

If you’re running a genuine hustle, don’t put yourself at risk. Register your business, use a corporate account, and always be transparent with your financial activities.

Whether you're a landlord, event planner, importer, or small business owner — know the rules, and follow them.

Don’t wait till EFCC comes knocking before you realize:
"I no know say na crime!"