Can EFCC arrest you for transferring N5 Million? Here’s what the law really says

A claim that the Economic and Financial Crimes Commission (EFCC) can arrest Nigerians for transferring more than ₦5 million from a personal account or ₦10 million from a corporate account via mobile banking has caused confusion online.

The assertion, which went viral on social media, led to widespread concern among users who feared they might be unknowingly committing a financial crime.

To clarify the facts, DUBAWA—a West African fact-checking platform—conducted an investigation into the provisions of Nigeria’s Money Laundering (Prevention and Prohibition) Act, 2022.

According to DUBAWA’s findings, the law sets a threshold of ₦5 million for individuals and ₦10 million for corporate bodies concerning cash-based transactions, not electronic or mobile transfers.

In clearer terms, the restriction applies to physical cash payments, not digital bank transfers. The Act mandates that cash payments exceeding these limits must be made through financial institutions, but does not criminalize transferring equivalent sums electronically.

Legal experts interviewed by DUBAWA emphasized that the EFCC cannot arrest someone simply for transferring large sums electronically, provided the funds are from a legitimate source.

However, they noted that banks are required to file Currency Transaction Reports (CTRs) for any transactions exceeding the cash thresholds.

These reports serve to notify regulators of large transactions but do not automatically indicate criminal behavior. Essentially, banks have a duty to report—not block—such transactions, and they may only be investigated further if there is suspicion of money laundering or other illicit activities.

Another important aspect the report highlights is the concept of “structuring.” This refers to the deliberate act of breaking up a large transaction into smaller amounts to avoid regulatory reporting requirements. Structuring is considered an offence under Section 2(2) of the Act and could attract legal action if discovered.

So while making a large electronic transfer is not a crime, trying to hide the nature or source of funds by splitting payments may attract the attention of anti-graft agencies like the EFCC.

Furthermore, the penalties for breaching cash transaction limits are distinct from those related to money laundering. Individuals who violate the cash thresholds may face fines of up to ₦10 million, imprisonment for a term of three years, or both. For corporate bodies, the fine could go as high as ₦25 million, along with possible license revocation.

On the other hand, engaging in actual money laundering—defined as concealing or disguising the origins of illegally obtained money—carries much stiffer penalties, including up to 14 years in prison and heavy financial sanctions.

It’s crucial for Nigerians to understand that transferring large sums electronically—be it via banking apps, mobile transfers, or internet platforms—is not illegal in itself. What matters under the law is the source of the funds and the transparency of the transaction. The EFCC, according to DUBAWA’s report, only becomes involved if there is reason to believe a transaction is linked to criminal proceeds.

In conclusion, the viral claim that transferring ₦5 million or more can result in arrest by the EFCC is misleading. DUBAWA’s comprehensive analysis confirms that the law targets cash-based transactions and not digital ones.

However, users are advised to remain compliant by avoiding structuring and ensuring all large transactions can be explained if questioned. As always, financial transparency remains the best defense against regulatory scrutiny.