By Caleb Ijioma and Sunday Awosoro
The fear of the EFCC is the beginning of financial caution. In recent months, the Economic and Financial Crimes Commission has emerged as a visible presence in both online and offline spaces. From the arrest of different celebrities accused of Naira abuse to continuous raids on suspected internet fraudsters, the institution appears not to be taking financial crimes lightly.
However, this time, a new wave of fear is spreading.
An X user recently claimed that transacting more than N5 million from a private account and N10 million from a corporate account in a day using a mobile phone is money laundering.
This claimant added that such transactions put people at risk of arrest by the Economic and Financial Crimes Commission (EFCC).
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As of Saturday, May 24, 2025, the claim had earned 1,000 retweets, 3,700 likes, and 548,000 Views. We also found different versions of this claim on Facebook, TikTok, and Instagram.
While a few people questioned the authenticity of this claim, several others believed it to be true. For example, a user @highmost369, empathising with Nigerians, said the citizens live in a hell of restrictions.
“I wish I were from Nigeria, but per what I’m seeing, I think it’s better for me to be in my country, Ghana. I swear, if you live in Nigeria, you can live in hell, no offence. You Nigerians are really trying,” he wrote.
Another user, Richard Oladipo, said, “The real money launderers don’t transact from their accounts. They do cash inside GMG.”
Others like @blackkarmae and @Olowe said this “new law” is an attempt to trivialise Martin Vincent’s (VDM) recent case.
“…Since they have nothing against him, they are coming out with different fables from different blogs,” Olowe wrote.
Now you may ask, “Why should I be arrested for simply spending my money?” “Can we no longer breathe in this country?” “What exactly is money laundering?”
This article answers these questions and highlights other offences you may not know.
What is money laundering?
Money laundering is the illegal concealment of money obtained from criminal or illicit activities so that it appears to have been obtained from a legitimate source.
In simpler terms, money laundering occurs when someone obtains money illegally but then attempts to disguise its origin as legitimate, allowing them to spend it without raising suspicion.
In Nigeria, money laundering is a criminal offence, and the primary legislation governing this offence is the Money Laundering (Prevention and Prohibition) Act, 2022. Under this Act, the Special Control Unit Against Money Laundering (SCUML) empowers the EFCC to enforce compliance, monitor transactions, investigate suspicious activities, and prosecute offenders.
While this Act holistically spells out different forms of money laundering and their penalties, here are some of the things you need to know:
1. Cash payments above N5 million are restricted, not electronic transfers
Section 2 of the Act clearly states that you, as an individual, cannot pay or be paid above N5 million “in cash.” If you have to do this, you must visit a bank and make the deposit. For companies, however, the highest cash you can accept or pay is N10 million. “Cash” refers to the physical banknotes you spend daily.
Alalafia Qudus, a lawyer who spoke to DUBAWA on this subject, noted that this section of the Act exists to discourage cash-based money laundering. He clarified that these thresholds only apply to cash transactions, not electronic transfers.
“Electronic transfers, no matter the amount, are not criminal by default,” he stated.
2. You may be reported, but not arrested
The fact that you obeyed Section 2 does not protect you from being reported. What does this mean? Banks and other financial businesses must flag any transaction, lodgment, or transfer that exceeds N5 million or N10 million within seven days. This is called a Currency Transaction Report (CTR). It is part of the system to detect suspicious or unusual financial activities.
Another lawyer, Idris Balogun, told DUBAWA that banks are expected to periodically check on their customers.
“In a bid to comply with relevant anti-money laundering laws, once a suspected inflow of money is entered into an account, the sum is flagged. Some banks even go so far as to place a lien on that money. That’s if, after the customer has been properly checked, it’s noticed that such a flow has not been entering the customer’s account. The customer will then be contacted to provide the source of the funds. If it’s genuine, then the lien on it will be released. If the customer cannot provide a genuine basis, EFCC may be contacted,” he explained.
Now, being reported does not mean you are guilty. It only means the transaction is flagged for transparency and possible review. Once this fund’s source cannot be proven, you must explain to the EFCC.
3. Splitting transactions can also get you in trouble
Some people think they can avoid scrutiny by breaking large transactions into smaller parts. Others even try spreading them across multiple banks. This is called structuring and may even be a more serious offense, as Section 2(2) considers it an attempt to deceive regulators.
The section says, “A person shall not conduct two or more transactions separately with one or more financial institutions or designated non-financial businesses and professions with intent to— (a) avoid the duty to report a transaction which should be reported under this Act; and (b) breach the duty to disclose information under this act by any other means.”
4. You can be jailed
The Money Laundering Act has different penalties for different offences. If an individual bypasses the bank in a cash transaction exceeding N5 million, such a person could be imprisoned for up to three years or be fined up to N10 million, or both. Conversely, a corporate organisation guilty of a similar offence could be asked to pay up to N25 million and possibly lose its operating license.
While these are mild penalties, those guilty of an actual money laundering offence could face up to 14 years imprisonment or be asked to pay a fine of at least five times the value of the money involved.
It does not end there. If a bank fails to flag a transaction exceeding the stipulated limit, it may be fined or face penalties for the staff involved.
Conclusion
The fear surrounding bank transfers and EFCC arrest is not entirely misplaced, but it is also not entirely true. What matters is the source of your money and the intent behind the transaction. If your funds are clean, there is no need to panic. But if you are moving illegal money, the EFCC might come knocking at your door.
This report was published under the Dubawa Kwame KariKari Factchecking and OSINT Fellowship.