CBN To Begin Investigating Any Bank Transactions From 250k?? - Business (2) - Nairaland
Nairaland Forum / Nairaland / General / Business / CBN To Begin Investigating Any Bank Transactions From 250k?? (5795 Views)
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| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by shawn123: 11:23am On Nov 05, 2009 |
you people sef, check the central bank constitution before you start shouting. The CBN has the right to set limit and monitor monetary transactions in any of the banks. They are the regulatory body and hence set the rules for the banks. Initially by law all transactions above 1 million naira is to be reported to CBN, this has been there all the while but not practiced. However i also think 250k is too little for monitoring but the CBN has the right to set limits and monitor contrary to what some people on this board are saying! |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by shawn123: 11:32am On Nov 05, 2009 |
hailolive: thanks jare, Naija people are always whinning, Yar'a dull we said he hasnt done anything., this i pretty much agree, now sanusi dey do they will still shout, what exactly do you guys want ?? so many solutions to one different question. Instead of shouting and going negative why dont we wait and see if it works. This is Nigeria where Nigerians plus government dont let things work! I dont really see anything wrong in this move, its done every where! |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by Epiphany(m): 12:07pm On Nov 05, 2009 |
PapaBrowne: This is a good idea. Never thought of Sanusi in EFCC but thinking about it now, it could have worked. He would have been a relentless EFCC chairman Secondly, like many have stated already, 250K is so small that their monitoring will be so occupied by transactions being carried out every half hour that they will have to increase that amount to something larger. Lets not lose focus however. While some think that Sanusi has not done anything and others think that he has, the news that emanated from the banks concerning the kind of things the managers did was/is not palatable. They flaunted all financial and banking ethics. Secondly, how would we have known that our home grown millionaires owe these banks billions of Naira. . . and not just that - the fact that these so called loans are non performing was equally annoying. Hence, we all know that our millionaires are living on/off borrowed money. If those are the only things that Sanusi brought to the fore, he has done some good work at least. Compared to the other leaders we have, Yar'Adua et al, Sanusi is doing okay. Radical or not! |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by texazzpete(m): 2:02pm On Nov 05, 2009 |
Perhaps you issues stem from the word 'monitoring'? When you go to UBA to transfer/deposit cash over 200k and you are asked to move to another line specially meant for that purpose, isn't it 'monitoring' also? It will take only an extra 5 seconds to enter someone's name in the database when making a transaction exceeding that limit, 5 seconds for the database search and 3 seconds to get back to normal business. So what are you lot complaining about? The word is 'monitoring'. While it may have flaws, it's a whole lot better than doing nothing. |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by MT: 2:02pm On Nov 05, 2009 |
I believe people that have lost money in the stock price of these bailed-out banks will never blame Sanusi. People are just unnnecessarily tribalistic. Even, if CBN wants to check for transaction over N10, why should people be scared unless you have skeleton in your cupboard ?. Must we moan over every step forward !. Instead for us to support this man campaign against big men who have short-changed the poor, we keep on calling for his head. This is really sad!. |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by SweetT1: 3:14pm On Nov 05, 2009 |
Fhemmmy: @Fhemmy Please stop talking about things you don't know anything about. What Sanusi is trying to do will curb some fraud in Nigeria, it is a well known prctise in the US. If you deposit an unsual amount of money in your bank account, the banks are mandated to notify the FBI. I deposited $17,000 one time in one lump some to my bank and the next time i went to withdraw, i couldn't! I was told by the bank that i needed to explain the source since it was unusual. I had to fill out many forms to declare the money. What Sanusi is simply saying is that if you are a politician and you start to put millions of Naira into your account without declaring the source, you are liable to be reported to EFCC for further explanations. But if you are a regular bank customer with a regular large deposits, you have nothing to fear. This will put some fears into 419, yahoo yahoo boys and politicians. |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by Getiso: 3:20pm On Nov 05, 2009 |
[We live in a country where Aliko Dangote can decide to open a company and bank account using the names Ali Dangote. If the company goes bust Ali Dangote becomes a fictitious character that never existed anywhere and nobody can do much about it.][quote][/quote] Dear mikeansy, i agree with you. dangote has used fraudulent means to amass wealth, most especially using fictitious names. An example is the recent debtors list that was published. His name apeared as Ali Dangote, owner of Dansa Oil, yet he denied it completely. |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by Akanbiedu(m): 3:25pm On Nov 05, 2009 |
What is wrong in monitoring financial transactions of politicians? We all know corruption is a big problem in the country and all hands have to be on deck to fight the menace. Monitoring financial transactions is an integral part of the fight against corruption. It is even better than the approach a lot of us prefer. The sensational news of arrest of a "big" man and the following drama. Monitoring helps in blocking the loop holes instead of waiting for the crime to be committed before pursuing the offender. In doing that, you will be wasting a lot of state's resources. You need to get evidence( which may be impossible), you arrest, you charge to court, you detain (u feed in detention), and do a lot of other things which consumes state resources and time. You are not even sure of winning the culprit! I guess we all love our convenience. If it doesn't pay us, we start making noise. We all have to sacrifice our inconvenience for the greater good of the country. |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by manny4life(m): 3:35pm On Nov 05, 2009 |
Getiso: |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by manny4life(m): 3:37pm On Nov 05, 2009 |
I love Nigeria, there is always somthing new to talk about. When you go to open an account in Nigeria, don't you go with your state driver's license or passport as a form of ID which they copy and keep as a record? Even though its corporate acct, they must have a Tax identifier (Tax ID), which is obviously verified through the govt dadtabase to see its not some ficticious business name, and obviously every one who has authorized accessibilty to the acct, go through some thorough screening, so how come he becomes fictitious if they did their job right from the begining? I don't know what the CBN act says or what its directives are, however, in my knowledge, the Office of the Conmptroller of Currency under the U.S. treasury (not federal reserve) is responsible for the monitoring of the national bank compliance in accordance to the Bank Secrecy act. I would assume maybe Nigeria doesn't have a federal treasury body, so Mr. Sanusi decides to take it upon himslf and the entire agency to enforce it. |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by agitator: 4:21pm On Nov 05, 2009 |
MT: most people on nairaland are children, relations and paid sycophants of these corrupt politicians. So they blindly oppose any action that affects their benefactors. |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by manny4life(m): 4:23pm On Nov 05, 2009 |
agitator: Just curious, how certain are you? |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by GeorgeD1(m): 4:27pm On Nov 05, 2009 |
aye. good question!  |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by Nezan(m): 4:52pm On Nov 05, 2009 |
Isnt 250k too small? Just imagine the number of cases they will have to investigate per day. |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by GeorgeD1(m): 5:32pm On Nov 05, 2009 |
they should make it 20k or 25k. why, 250k is too much naaaa!  |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by manny4life(m): 5:35pm On Nov 05, 2009 |
Nezan: Tank you. Assuming that a bank has an average of 100 branches * 25 banks = 2,500 branches in Nigeria and each bank branch process an average of (5) N250,000.00 transactions daily, that will equal to 2,500 x 5 = 12,500 transactions to be investigated on daily bases. More so, 500 transactions per bank on daily basis and I would imagine that each bank process more than 500 transaction in all their branches on daily basis.Does any one know how long it takes to audit one transaction, let alone 12,500 average on daily basis. I guess that 70% of CBN's work will be investigation. |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by GeorgeD1(m): 5:39pm On Nov 05, 2009 |
allow cbn to do their work! why complain on behalf of sanusi? the man wants to work, so allow him pls! |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by MT: 6:15pm On Nov 05, 2009 |
Thank you George!. These people complaining are not working in CBN, I dont know their problems with logistics!. They just want to nail the guy under any guise, no matter how childish or stupid. I'm sure some people will soon start to blame Sanusi for the disappearance of meat(s) in their soup  . That's how low some people can be! |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by GeorgeD1(m): 7:46pm On Nov 05, 2009 |
***winks |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by slimes(m): 8:27pm On Nov 05, 2009 |
The law has been there since, they are just implementing it and of course, the most victims are innocent people. |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by coolG: 1:55am On Nov 06, 2009 |
Sweet T: Really? Do not accuse others of ignorance when you just displayed one. Which is a well-known practice in US? That the US Federal Reserve Bank orders banks to report suspicious deposits? Maybe i should start by saying that the BSA Act and the subsequent amendments and other-related Acts culminated into the USA Patriots Act, all of which was enacted by US Congress and not the Federal Reserve Bank. So what are you arguing that makes every other person not know what they are saying. If you are not aware, every bank in Nigeria forwards to EFCC all transactions greater than 500K for Individuals and 1M naira for corporate organization since 2003/2004 (I understand they may have moved up the limits to 1M and 5M naira currently because of the volume of data reported). Are you saying the EFCC should abdicate or outsource one its duties to CBN? Why should shareholder's of a bank incur any cost to give that information to CBN when the EFCC is empowered to collect suspicious activity list and investigate when and where they find a suspicious/unusual deposits. Does CBN have the power to ask any individual the source of his/her income? Does it have constitutionality authority to prosecute any individual who refuses to show income sources? It makes more sense for the CBN governor to push through the executive a legislation that gives him the power to implement his 'PEP' policy if he seriously thinks it will 'curb fraud' as you suggested. curb fraud? put fear on yahoo yahoo boys? how? Is it that 250,000 naira cannot be deposited as 50,000 naira over 5 deposits in one day or over severals or over different accounts or over different branches or over several identity names or in any combo? Or maybe he should bring down the limit to 500 naira so people cannot split the deposit. Can you see why it is laughable? This may be one of the reasons his critic do not think he is focusing on the right stuff. You gave an example of your deposit of $17,000 but what you did mention is that the bank is complying with US Congress enacted legislation that requires bank to report suspicious activities including unusual deposit. It would have been illegal and unconstitutional for the Fed to direct banks to do that and that was why everything was articulated as part of USA Patriot Act. It is also important to note that the banks report unusual deposits and not ALL deposit above X. So, in your case, it is unclear to the bank you have any source of income to support your deposit. I can also tell you that i have deposited close to that amount thrice, one in 2006, another in 2007 and another just two months ago, and in all cases i was never asked to declare the source. So, the reason you were probably asked was because there was no correlation between your previous banking activities (deposits/withdrawals/direct deposits) and the $17,000. Bottom line: The CBN governor should understand he holds a powerful position of Chief Economist of the Federation and not Compliance Officer, Banks Surveillance. Modern economies are complex and the CBN governor should be engendering confidence and articulating policies that will improve the economic fortunes of Nigeria and ultimately Nigerians rather than engaging in short term name recognition that will not add anything to the economic fortunes of Nigeria. |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by manny4life(m): 2:33am On Nov 06, 2009 |
@ coolG, you really explained every thing for @Sweet T. @Swet T, first off I need to ask you some questions, when you deposited the $17,000 lump sum money, was it a cash and or check transaction, because as of the time back in 2006 when I worked for Sun Trust Banks and if I remember correctly, under the BSA act enacted by Congress, one of the regulations clearly says no national bank shall engage in a cash deposit transaction in excess of $10,000 or more, and if the amounts are split into several portions (called structuring), and the amount exceed $10,000.00 or more, banks should file a Currency Transaction Report (CTR) and a Suspicious Activity Report (SAR) form, however the $10,000 limit does not apply to corporate bodies or private individuals who are known to make one time deposits like small/medium business owners which the bank reports using a different form. Like I explained Mr. Sanusi is like Ben Bernanke, you don't see Bernake, investigating bank transactions, that is not his business, its not the federal reserve's business, it's the business of the OCC of the United States Treasury. The CBN's/Federal Reserve's job is to regulate financial institutions and not currency compliance. |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by walestar2(m): 5:44am On Nov 06, 2009 |
SANUSI want to make names like Ribadu and El Rufai but he has forgot what's happening to them right now, Sanusi doesn't know what to do anymore,maybe the next thing he will do is to investigate reason why people deposit in the banks and the source of their money, that guy might have take agamasinga. |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by Nignog: 5:45am On Nov 06, 2009 |
Nigeria should ban all western union and money gram businesses. |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by Megadeals: 6:54am On Nov 06, 2009 |
I guess this is in line with catching up with South Africa's GDP in 2013. |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by Nobody: 8:36am On Nov 06, 2009 |
Sanusi has a hidden agenda, Maybe he is campaigning to be president of Nigeria in 2011. I will never vote for him. |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by Nobody: 8:54am On Nov 06, 2009 |
manny4life: DOES IT MEAN THAT ANYTIME SOME ONE RECEIVES A SALARY ABOVE N250k, CBN WILL HAVE TO GIVE CONSENT BEFORE THE MONEY CAN BE USED? THIS IS MADNESS! |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by Nobody: 9:34am On Nov 06, 2009 |
I don't see anything wrong with CBN monitoring transactions above 250k . Mind you 250k is a large amount even to the average nigerian and setting the amount at that must have reasons.If you think 250k is too small some would argue that even 10milla is too small to monitor. mikeansy and texazzpete have valid arguments.mikeansy suggests that a proper identification method should be adopted to forstall sharp practices while texazzpete says the monitoring is a good effort by Sanusi , I don't see anything wrong with both suggestions just that one has to come before the other. As far as I'm concerned these two guys have the best contributions on the this topic and not all you guys who quote one law or act |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by GeorgeD1(m): 2:26pm On Nov 06, 2009 |
why are you worried? at least you're not a senator recieving 8 million naira a month  |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by manny4life(m): 4:18pm On Nov 06, 2009 |
VALENCI: Obviously not, they can't authorize someone on when to use their own money, perhaps they would spend their time investigating where the money originated from and trust me, can be very time consuming. Check this out, it takes an average of up to 1-3hrs for a bank to investigate a single transaction and that depends on number of factors, one of the things they would look at is the trend, this is within a range say within the past 90 days from deposits to withdrawals, payments, transfers, etc) and this all depends if there is electronic coordination and this does not include time lag and corporate bureaucracy involved. So like you said payroll checks that is paid and you deposit it in the bank, that is a trend because you paid either bi-weekly or monthly and its same amount conducted either cash or ach and its consistent over like the next 90 days or more, then you fine. Like I have always maintained, its not the job of CBN to do currency investigation, that is the job of the Financial crime unit. He should focus more on more important financial melt down in his lower banks. I hope |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by GeorgeD1(m): 5:56pm On Nov 06, 2009 |
well, that's another twist to the whole saga. |
| Re: CBN To Begin Investigating Any Bank Transactions From 250k?? by BILLIONs1: 11:29pm On Nov 06, 2009 |
Now once I am paid at the end of the month, I'll be on CBNs radar. COOOOOL! |
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