The Acting Chairman of the Economic and Financial Crimes Commission (EFCC) had said some banks are aiding corrupt officials to run accounts without Bank Verification Numbers.

Magu said this on Tuesday at a workshop in Lagos organised by the Chartered Institute of Bankers of Nigeria.

Magu, who was represented by the Head of Operations, Lagos Zonal office of the EFCC, Garba Dagum said some banks are not complying with regulations on money laundering.

He accused banks of not reporting suspicious transactions in line with statutory regulations.

Magu said some banks are “opening accounts for government officials even after the introduction of the Treasury Single Account, thereby allowing government funds to be diverted.”

He added, “There are several bank accounts that are not linked to BVN and are still active. Some microfinance banks indulge in collecting huge sums of cash for a short fixed term deposit with attractive high interests.”

The EFCC boss added that some Bureau de Change are not licensed.

“Most of them are not licensed and usually do not keep records. You can imagine when $2m cash is given to an unregistered BDC man on the street,” he said.

Magu added, “Application of penalties, ranging from fines to revocation of licences by regulators, shall send a strong signal to errant banks and other reporting organisations

“Regular review of the legal framework to move with time and accommodate new emerging trends of money laundering is key.”

Azeez