Regulatory Alerts2013-09-06 | TED/FEM/FPC/GEN/01/0082013 Hajj Operations - Purchase Of Pilgrims Travelling Allowance (PTA)
The Central Bank of Nigeria (CBN) has issued a circular on the re-introduction of the Cash-less policy to reduce cash transactions in the Nigerian economy. Under this policy, all cash transactions exceeding 5 million Naira will be subjected to scrutiny by the CBN. This means that businesses and individuals conducting transactions worth more than this amount must provide information about the source of the funds. The circular also contains a list of branches of various banks across Nigeria where the CBN has deposited money to promote cash-less transactions. These branches will serve as depots for the disbursement of the money provided by the CBN. This move is aimed at reducing the amount of cash in circulation and encouraging the use of electronic payment systems, such as mobile banking and online payments. By doing so, the CBN hopes to tackle issues like tax evasion, corruption, and money laundering, which are often facilitated through large cash transactions.