New Nigerian legislation mandates casinos to tighten AML measures and controls

Nigeria’s Federal Government has introduced stricter regulations for casino operations as part of its fresh move against money laundering.

President Muhammadu Buhari assented Thursday to the Money Laundering (Prevention and Prohibition) Bill 2022, the Terrorism (Prevention and Prohibition) Bill 2022, and the Proceeds of Crime (Recovery and Management) Bill 2022. This package now prohibits ownership and operation of shell accounts in the national territory. 

The Money Laundering Act establishes a Special Control Unit against Money Laundering under the Economic and Financial Crimes Commission, which is to monitor financial transactions within and outside Nigeria. 

Per this new legislation, both online casinos and ship-based casinos will now have to verify the identity of any of its customers carrying out financial transactions by requiring its customer to present a valid original document bearing his name and address; record all transactions in chronological order including the nature and amount involved in each transaction; and each customer’s surname, forenames and address, in a register forwarded to the Special Control Unit against Money Laundering for that purpose.

The register must be forwarded to the Unit and preserved for at least five years after the last transaction recorded in the register.