₦airaland Forum

CBN: Letter to the CBN on Eradicating Financial Fraud and Ransom Payment to Kidnappers

On the 27th of October, 2022, I wrote an article titled: CBN: What You Don't Know About The New Naira.

In the article, I talked about security, cleanliness, e-Naira, and cashless economy.

On the 30th of October, I wrote another article titled: CBN: New Naira Note, Gumi, And The Solution To Stop Paying Ransom. Read it here https://www.nairaland.com/7408898/cbn-new-naira-note-gumi

Yesterday, being the 6th of December, 2022, I noticed the CBN had implemented 90% what was contained in the second article.

After reading the entire article and what the CBN had implemented, I saw some loopholes that will be exploited by kidnappers and criminals. Before I talk about these loopholes and how to block them, I'll repost what the CBN said.

Typing...

TheCBN:
CENTRAL BANK OF NIGERIA
Banking Supervision Department Central Business District

December 6, 2022
BSD/DIR/PUB/LAB/015/069

Letter to All Deposit Money Banks (DMBS) and Other Financial Institutions (Payment Service Banks (PSBs), Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs)

NAIRA REDESIGN POLICY — REVISED CASH WITHDRAWAL LIMITS

Further to the launch of the redesigned Naira notes by the President of the Federal Republic of Nigeria, on Wednesday, November 23, 2022 and in line with the Cash-less policy of the CBN, all deposit money banks (DMBs) and other financial institutions (0F1s) are hereby directed to note and comply with the following:

1. The maximum cash withdrawal over the counter (OTC) by individuals and corporate organizations per week shall henceforth be N100.000 and N500,000 respectively.

Withdrawals above these limits shall attract processing fees of 5% and 10%, respectively.

2 Third party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of 110,000.000 on clearing cheques still subsist.

3. The maximum cash withdrawal per week via Automated Teller Machine (ATM) shall be N100.000 subject to a maximum of N20,000 cash withdrawal per day.

4 Only denominations of N200 and below shall be loaded into the ATMs.

5 The maximum cash withdrawal via point of sale (PoS) terminal shall be N20.000 daily.

6. In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits is required for legitimate purposes, such cash withdrawals shall not exceed 15,000,000.00 and 110,000.000.00 for individuals and corporate organisations. respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements.

a. Valid means of identification of the payee (National ID, International Passport, Driver's License).

b. Bank Verification Number (BVN) of the payee.

c. Notarized customer declaration of the purpose for the cash withdrawal.

d. Senior management approval for the withdrawal by the Managing Director of the drawee, where applicable.

e. Approval in writing by the MD/CEO of the bark authorising the withdrawal.

Please further note the following: i. Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision Department. Compliance with extant AML/CFT regulations relating to KYC, ongoing customer due diligence and suspicious transaction reporting etc. is required in all circumstances. Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS. eNaira, etc.) to conduct their banking transactions.
Finally, please note that aiding and abetting the circumvention of this policy will attract severe sanctions.

The above regulatory directives take effect nationwide from January 9, 2023.

Please be guided accordingly.

HARUNA B. MUSTAFA
DIRECTOR OF BANKING SUPERVISION

...

Below is the loophole and I'll explain later.

Withdrawals above these limits shall attract processing fees of 5% and 10%, respectively.

6. In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits is required for legitimate purposes, such cash withdrawals shall not exceed 15,000,000.00 and 110,000.000.00 for individuals and corporate organisations. respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements.

@Bold should be removed. It's a loophole that will be exploited by kidnappers, criminals, fraudsters, and politicians.

5% or 10% is nothing when it comes to withdrawing stolen money. If I steal a billion Naira and you asked for 10% for me to withdraw everything and not get caught, I'll gladly do it. It's only 100 million Naira.

For a stolen money and being able not to get caught, it's nothing. Most criminals will pay.

For kidnappers, this is a loophole they'll exploit too. If they asked you to pay 50 million ransom and you tell them your bank can't let you withdraw such, they'll command you to pay 5% or 10% of withdraw charge and bring the rest.

They'll decline transfer because there is a loophole for them.

I feel this loophole is kept intentionally for politicians and kidnappers because in this country, most people are criminals. The people who aren't criminals yet have 90% chances of becoming one when the opportunity presents itself.

If you truly want this cashless policy to work and affect kidnappers/criminals, remove that 5% or 10% extra charge. It's a loophole that will be exploited. Failure to remove it means there is a second agenda.

[quote author=iLegendd post=118968869][/quote]buhari is a real nigga

Thunder fire you bald head ilegendd

papiilo:
buhari is a real nigga

Thunder fire you bald head ilegendd

Find some thing to do with your life or kys.

ambitiouschap17:
Find some thing to do with your life or kys.

make I see 50k then U for help am

Bro you are right about the 5 and 10 percent and I believe it was deliberately kept for politicians and criminals and to also make the banks rich. Most bank directors will gladly signed of on the waiver as long as you can pay their percentage.

Last last na average Nigerians go suffer am.

hotswagg12:
Bro you are right about the 5 and 10 percent and I believe it was deliberately kept for politicians and criminals and to also make the banks rich. Most bank directors will gladly signed of on the waiver as long as you can pay their percentage.

Exactly!

Ransomtheking:
Last last na average Nigerians go suffer am.

I doubt. It will favor an average Nigerian. The people that'll suffer it are criminals if they stop the 5% and 50% loophole.

After stopping it, kidnappers will start a method I love to call "Pay the Seller, Bring the Product."

Since they can't get Naira, Dollar, or any other currency in cash, they'll tell you to use the money to buy cars, bikes, phones, gold watch, TV, generator, etc, or even food.

If they ask for car or other material things, they'll be caught easily with a hidden tracker.

If they asked for the money to used to purchase food, they can't finish it. Except their wives own restaurant or sell in the market.

Criminals would still go around the law.

The CBN new policy is just pressuring the average Nigerian.


https://www.youtube.com/watch?v=RfaIEnw15w0

iLegendd:
I doubt. It will favor an average Nigerian. The people that'll suffer it are criminals if they stop the 5% and 50% loophole.

After stopping it, kidnappers will start a method I love to call "Pay the Seller, Bring the Product."

Since they can't get Naira, Dollar, or any other currency in cash, they'll tell you to use the money to buy cars, bikes, phones, gold watch, TV, generator, etc, or even food.

If they ask for car or other material things, they'll be caught easily with a hidden tracker.

If they asked for the money to used to purchase food, they can't finish it. Except their wives own restaurant or sell in the market.

Am into agro business and I need to withdraw atleast 30 thousand naira on a daily and in other to get my commodities from farmers they'll be needing cash whereas I am not close to an ATM,only POS,where the POS agents have to pay 5% to 10% if they exceed maximum withdrawal limit don't you think the price at which I will be charged by the POS agent for withdrawing 20k will be very high

Ransomtheking:
Am into agro business and I need to withdraw atleast 30 thousand naira on a daily and in other to get my commodities from farmers they'll be needing cash whereas I am not close to an ATM,only POS,where the POS agents have to pay 5% to 10% if they exceed maximum withdrawal limit don't you think the price at which I will be charged by the POS agent for withdrawing 20k will be very high

If garri is suspended forever in Nigeria, are you going to find a way to survive or die?

Are you telling me you don't have an Android phone to make transfer to them? Oh, they're villagers and they've never used a phone in their lives before, abi?

You don't even need an Android phone to receive or send money. A small phone can do it.

Oh, they're illiterates and can't operate a phone, abi? Trust me, they have children or relations who can help them.

If the farmers don't have NIN or BVN, they can travel to the city and register, then open an account.

You can even open a bank account from home if you have BVN and NIN.

That 5% and 10% is to discourage you from using cash, but making bank transfers of any amount is free via eNaira.

Please, you guys should try and embrace this growth instead of seeing it as an obstacle.

iLegendd:
If garri is suspended forever in Nigeria, are you going to find a way to survive or die?

Are you telling me you don't have an Android phone to make transfer to them? Oh, they're villagers and they've never used a phone in their lives before, abi?

You don't even need an Android phone to receive or send money. A small phone can do it.

Oh, they're illiterates and can't operate a phone, abi? Trust me, they have children or relations who can help them.

If the farmers don't have NIN or BVN, they can travel to the city and register, then open an account.

You can even open a bank account from home if you have BVN and NIN.

That 5% and 10% is to discourage you from using cash, but making bank transfers of any amount is free via eNaira.

Please, you guys should try and embrace this growth instead of seeing it as an obstacle.

bro you are sounding so wack from my explanation you would have known am in a very remote area and out of 100% only 11 percent have working bank accounts,
So uuu think cbn gonna remove the 5% to 10% paid for exceeding maximum limits,or do you think this percentage gonna hinder government officials from looting
Bro there's no way this is gonna go well with average Nigerians

Ransomtheking:
Am into agro business and I need to withdraw atleast 30 thousand naira on a daily and in other to get my commodities from farmers they'll be needing cash whereas I am not close to an ATM,only POS,where the POS agents have to pay 5% to 10% if they exceed maximum withdrawal limit don't you think the price at which I will be charged by the POS agent for withdrawing 20k will be very high

Oh, those farmers will be needing cash before they sell the product to you? Thank God.

If they can't upgrade to receiving transfer, smarter farmers will take over from them just the same way computer took over from typewriters.

Life can't be stagnant because of a few people who hates growth. If you're not growing and upgrading, you're dying for the new generation to take over.

In your case, there is nothing to worry about. Those farmers must upgrade by force and it's quite easy to do. So, you're safe.

Ransomtheking:
bro you are sounding so wack from my explanation you would have known am in a very remote area and out of 100% only 11 percent have working bank accounts,
So uuu think cbn gonna remove the 5% to 10% paid for exceeding maximum limits,or do you think this percentage gonna hinder government officials from looting
Bro there's no way this is gonna go well with average Nigerians

No need for fight.

Those people you see as above average Nigerians don't have too heads. An average Nigerian can always succeed if they want to.

For 11 people to even have a bank account in that village is already a breakthrough. They'll show the rest how they did it.

Some obstacles are just in our head.


P.S: I have seen a bank that drives around registering people on the go. If you tell them about this village, they'll go there and register them. The only way it won't work is if that community does not have mobile network.

People shouldn't see difficulties as impossibility..

Ransomtheking:
Am into agro business and I need to withdraw atleast 30 thousand naira on a daily and in other to get my commodities from farmers they'll be needing cash whereas I am not close to an ATM,only POS,where the POS agents have to pay 5% to 10% if they exceed maximum withdrawal limit don't you think the price at which I will be charged by the POS agent for withdrawing 20k will be very high

stop arguing with ilegendd don't take corrections . He thinks he knows it all

iLegendd:
CBN: Letter to the CBN on Eradicating Financial Fraud and Ransom Payment to Kidnappers

On the 27th of October, 2022, I wrote an article titled: CBN: What You Don't Know About The New Naira.

In the article, I talked about security, cleanliness, e-Naira, and cashless economy.

On the 30th of October, I wrote another article titled: CBN: New Naira Note, Gumi, And The Solution To Stop Paying Ransom. Read it here https://www.nairaland.com/7408898/cbn-new-naira-note-gumi

Yesterday, being the 6th of December, 2022, I noticed the CBN had implemented 90% what was contained in the second article.

After reading the entire article and what the CBN had implemented, I saw some loopholes that will be exploited by kidnappers and criminals. Before I talk about these loopholes and how to block them, I'll repost what the CBN said.

Typing...

the CBN didnt implement because you wrote a nairaland article

Implementation started in 2012 as part of the vision vision 2020 , the amount was just reviewed

The pilot was run in Lagos State from January 2012 while the policy took effect in Rivers, Anambra, Abia, Kano, Ogun and the Federal Capital Territory (FCT) on the 1st July, 2013.

https://www.cbn.gov.ng/cashless/

thebosstrevor1:
the CBN didnt implement because you wrote a nairaland article

Implementation started in 2012 as part of the vision vision 2020 , the amount was just reviewed

The pilot was run in Lagos State from January 2012 while the policy took effect in Rivers, Anambra, Abia, Kano, Ogun and the Federal Capital Territory (FCT) on the 1st July, 2013.

https://www.cbn.gov.ng/cashless/

Rest

iLegendd:
No need for fight.

Those people you see as above average Nigerians don't have too heads. An average Nigerian can always succeed if they want to.

For 11 people to even have a bank account in that village is already a breakthrough. They'll show the rest how they did it.

Some obstacles are just in our head.


P.S: I have seen a bank that drives around registering people on the go. If you tell them about this village, they'll go there and register them. The only way it won't work is if that community does not have mobile network.

People shouldn't see difficulties as impossibility..

Nigeria Employers’ Consultative Association, NECA, has expressed concerns over the N100,000 cash withdrawal limit announced by the Central Bank of Nigeria, CBN, saying there is “no gainsaying that the livelihood of many individuals and enterprise sustainability would be impacted.”

Reacting to the new policy, Director-General of NECA’s Wale-Smatt Oyerinde, said “As usual with the Central Bank of Nigeria (CBN), the Bank announced a new naira withdrawal policy without extensive consultation with Organized businesses and those that will be directly impacted by the Policy. This new policy is diversionary and a mere distraction from the critical issues that are affecting the Nation.

With the inflation rate hovering around 20 percent and over 100 million Nigerians in multidimensional poverty, the best that Government should do is not to further cripple the economic activities of Nigerians. It is no gainsaying that the livelihood of many individuals and enterprise sustainability would be impacted.

“While it is desirable to get all bankable individuals and businesses into the banking system and promote the cashless policy of the CBN, the timing without adequate preparation and sensitization of the critical mass that drives the economy (the SMEs and MSMEs) could prove counter-productive and further drive many below the poverty line. This is another classical example of the inconsistencies and misalignments between the fiscal and monetary policies of the Government. It is absurd to blatantly set traps of processing fees for individuals and businesses who desire to withdraw their hard-earned money from the bank for legitimate and genuine business transactions. It is also important to note that the banking infrastructure and mobile/digital facility to drive the cashless policy are not sufficiently developed. This is not only draconian but also inhuman.

“We urge the CBN and indeed, the Federal Government to replicate the energy and promptness used in implementing this policy to address the issues of dwindling value of the Naira, rising inflation, oil theft, ballooning foreign debt, and get millions out of poverty realm.

While Nigerians businesses are groaning under the burden created by not-well-thought-out Government policies, more misery should not be placed on them as we approach the yuletide season.”

Sir, if these kidnappers or criminals start collecting ransom through their bank account, can't the bank track those criminals/owner of account that receive the money through their account details?

Kaka5:
Sir, if these kidnappers or criminals start collecting ransom through their bank account, can't the bank track those criminals/owner of account that receive the money through their account details?

That is exactly what the CBN wants — for everyone with millions to be trackable. Put criminals in a tight corner so that they'll have no choice than to accept transfer and they'll be caught from there.