• MPC keeps interest rate at 14%

As the 2019 elections approach and political maneuvering intensify, the Central Bank of Nigeria (CBN) has warned Deposit Money Banks (DMBs) to be careful not to violate the  money laundering Act.

Banks that violate the Act in the guise of handling money for politicians,  the apex bank warned, risk  stiff penalty. CBN Governor Godwin Emefiele gave the warning yesterday at the end of the Monetary Policy Committee (MPC) meeting in Abuja.

The apex bank held its key interest rate at a record high level as it sees inflationary pressures persisting even as prices are becoming more stable.

The MPC maintained the benchmark rate at 14 per cent.

Read also: $8.1b: CBN, MTN on verge of striking deal

Emefiele told reporters that the CBN’s position and warning was handed down to the DMBs Chief Executives at a recent meeting to intimate them of the dangers they may be exposed to as a result of the activities of politicians.

He said: “On the 2019 elections, we had a meeting with the banks. We advised them to be very careful of money laundry issues. If they are caught, they will be heavily penalised. But banks have their rules and criteria; I don’t think banks will do anything that will violate the rules. When they go wrong, we will deal with them.

“When you say banks lending to politicians, banks have their acceptance criteria and I don’t think that the banks will do that at this time. Everybody must have learnt their lessons and I believe that the right thing for everybody is to conduct their businesses carefully. But we as central bank, we are staying behind and watching to make sure that when things go wrong or about to go wrong we will deal with it appropriately.”