Anti-Money Laundering and Level Two Accounts

The process of making illegal money appear legal by disguising its origin.

Laws, regulations, and procedures designed to prevent criminals from hiding illegal money.

Acts of violence or threats intended to create fear and intimidate, often for political or ideological reasons.

The process of providing financial resources to support terrorist activities.

The process of verifying the identity and financial background of a customer, including their business activities.

The process of verifying the identity and financial background of a business, including its source of funds and activities.

A serious crime that involves converting or transferring illegal profits into legal assets to conceal their origin.

A crime involving providing financial support to terrorist activities, including funding, recruiting, or supplying weapons.

Countries that are more likely to be used for money laundering due to factors like weak regulations, corruption, or economic instability.

These are individuals or organizations that are more likely to be involved in money laundering due to their business activities.

These are methods that are more likely to be used for moving illegal funds, such as wire transfers, online payments, or private banking.

Financial institutions, such as banks and investment firms, play a crucial role in the economy and are vulnerable to being used for money laundering.

Money laundering can have serious consequences for society, including corruption, terrorism, and damage to a country's reputation.

The illegal act of using money from criminal activities to fund terrorist activities.

Characteristics of countries that make them more susceptible to money laundering, including weak regulations, corruption, and economic instability.

The initial step in money laundering where illegally obtained funds are introduced into the financial system.

The second phase of money laundering, involving a series of transactions to obscure the origin of the funds. These can include creating multiple accounts, transferring money between them, and making investments.

The final stage of money laundering, where the laundered funds are integrated back into the legitimate economy as legitimate income.

Breaking down large sums of illegal money into smaller amounts to deposit them into various financial institutions, making it harder to detect.

Illegal activities that generate funds requiring money laundering to conceal their origin.

Transactions involving buying and reselling assets or shares to further obscure the origin of laundered funds.

Purposefully making many complex bank transfers between various accounts to confuse the trail of funds.

Fund re-entry into the legitimate economy through the acquisition of valuable assets, such as real estate, businesses, or luxury items.

A bank account with a maximum single deposit of N50,000 and a maximum cumulative balance of N400,000.

The process of verifying a customer's identity to prevent fraud and money laundering.

This involves using official databases like NIMC, INEC, and FRSC to confirm the customer's information is real.

A bank account designed for daily transactions, transfers within Nigeria, and may be linked to a mobile phone.

These are accounts used for mass payroll or by enterprises, with a higher transaction limit but subject to stricter monitoring.

A government-issued document that confirms a person's identity and legal right to drive a vehicle.

A document issued by the Federal Road Safety Commission (FRSC) proving a person's identity and right to drive.

A document that verifies a person's identity and address, usually with a photograph.

A document demonstrating an individual's age, often obtained from a hospital or government agency.

A legal document that verifies a company's existence and legal status.

A document outlining a company's goals, operations, and internal governance.

A formal written agreement between partners establishing their roles, responsibilities, and profit sharing in a business.

A three-tiered system used to tailor KYC requirements based on a customer's risk profile, fostering financial inclusion while maintaining AML/CFT objectives.

A daily fine of N1m is imposed on conviction for non-compliance with money laundering regulations. This fine is calculated for each day the violation persists.

These are behaviors or characteristics of customers that raise suspicion of potential money laundering activities.

These red flags include trying to hide the owner of funds, seeking shortcuts, and engaging in cash transactions while avoiding negotiable instruments.

Failing to comply with anti-money laundering regulations can lead to serious penalties.

The National Drug Law Enforcement Agency (NDLEA) Act 2011 outlines penalties for money laundering offenses.

The Act provides for prison terms of up to 5 years and fines five times the value of the proceeds of crime.

The Terrorism Prevention Act 2011 aims to prevent terrorist financing activities.

This section of the Act deals with the regulation of terrorist property, including its transfer and sale. Offenses related to terrorist property can result in a maximum prison sentence of 10 years.