BANKS AND OTHER FINANCIAL INSTITUTIONS (AMENDMENT) ACT, 2002
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LAWS OF THE FEDERATION OF NIGERIA
BANKS AND OTHER FINANCIAL INSTITUTIONS (AMENDMENT) ACT, 2002
EXPLANATORY MEMORANDUM
An Act to further Amend the Banks And Other Financial Institutions Act 1991, as amended, And For Matters Connected Therewith.
ARRANGEMENT OF SECTIONS
- Amendment of 1991 No. 25, 1997 No. 4, 1998 No. 38.
- Substitution for Section 3 (3)
- Insertion of Section 60 B
- Short title.
BANKS AND OTHER FINANCIAL INSTITUTIONS (AMENDMENT) ACT, 2002 [ACT NO. 10]
An Act to further Amend the Banks And Other Financial Institutions Act 1991, as amended, And For Matters Connected Therewith.
(Commencement [14th December, 2002])
ENACTED by the National Assembly of the Federal Republic of Nigeria-
Amendment of 1991 No. 25, 1979 No. 4, 1998 No. 38
- The Banks and Other Financial Institutions Act, as amended, (in this Act referred to as the “Principal Act”) is further amended as set out in this Act.
Substitution for Section 3(3)
- Substitute Section 3 (3) of the Principal Act with the following new subsection (3)-
“(3) Upon payment of the sum referred to in subsection (2) of this section, the Governor may issue a license”.
Insertion of section 60B-
- Insert immediately after section 60A of the Principal Act the following new Section (60B).
Power of Government to freeze accounts
60B.- (1) Notwithstanding anything contained in any other enactment, where the Governor has reason to believe that transactions undertaken in any bank account with any licensed bank are such as may involve the commission of any criminal offence under any Law, he may make ex parte application for an order of the Federal High Court verifying on oath the reasons for his belief and on obtaining such a Court order direct or cause direction to be issued to the manager of the bank where the account is situated or believed to be or in the alternative to the head office of such bank directing the bank to freeze forthwith all transactions.
(2) The manager of a bank in which a direction has been issued on account under subsection (1) of this section shall, on receipt of such direction, suspend all banking transactions whatsoever relative to such account for such period as may be specified in the direction.
(3) Where an account has been frozen pursuant to this section, the Governor shall refer the matter to the Nigeria Police Force, the National Drug Law Enforcement Agency or any other appropriate regulatory authority.
(4) Where it is not possible for the Nigeria Police Force, National Drug Law Enforcement Agency or any other appropriate authority to conclude its investigations within the period stipulated in the Court order, the Governor shall apply to the Federal High Court for an order for the continued freezing of the account concerned.
Short Title.
- This Act may be cited as the Banks and Other Financial Institutions (Amendment) Act, 2002.
