Don’t Tamper With LGs Funds, NFIU Warns Governors, Banks

The Nigerian Financial Intelligence Unit (NFIU) has again reiterated its position that the 1st June effective date of the guidelines to all financial institutions and public officials on the local government funds stands. 
In a statement on Wednesday, the Unit also maintains its understanding of the 1999 constitution that no debit is allowed on any local government  funds unless and until the funds are credited to and reach the bank accounts of a local government in any  state of the federation.
Prompt News Online recalls that the NFIU had on May 6, 2019, warned banks not to allow state governors tamper with the local government accounts.
Also, the Unit insists that provision of the cumulative cash withdrawal not exceeding N500,000 per day is also firmly in place effective 1st June 2019. 
“We observed isolated comments to the contrary in the past few days which in our assessment only amounted to wilful misinterpretation of the 1999 constitution and therefore, of no consequences to the operations of the entire financial system. 
“The provision of the guidelines to the financial institutions was also on account of legitimate powers provided by the NFIU Act 2018 and any violations of the said guidelines will be sanctioned appropriately,” the statement reads further.