Banks comply with orders on lawyers’ SCUML financial reporting

Commercial banks in Nigeria have started complying with the order of a Federal High Court in Abuja nullifying the requirement for lawyers to disclose their clients’ financial transactions to some law enforcement agencies. Justice Obiora Egwuatu had in July nullified the provisions of the Special Control Unit Against Money Laundering (SCUML) Act, 2022 which mandates […]

Commercial banks in Nigeria have started complying with the order of a Federal High Court in Abuja nullifying the requirement for lawyers to disclose their clients’ financial transactions to some law enforcement agencies.

Justice Obiora Egwuatu had in July nullified the provisions of the Special Control Unit Against Money Laundering (SCUML) Act, 2022 which mandates lawyers to disclose the financial transactions of their clients to the Economic and Financial Crimes Commission (EFCC).

Following the judgement, commercial banks wrote to their customers advising them they were exempt from restrictions imposed on lawyers by the SCUML.

In a letter in August by a commercial bank cited by this newspaper, a commercial bank wrote to its customer that “Following the recent judgement in Suit No: FHC/ABJ/CS/25/2023 Abu Arome Vs CBN & 3 Ors, we are pleased to inform you that you no longer need to provide SCUML certificate to operate your account.

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“Consequently, the restriction on your account has been lifted and you can now resume transacting seamlessly.

“We appreciate your understanding and look forward to providing you with uninterrupted banking service.”

An Abuja-based lawyer, Arome Abu Esq filed the suit in January 2023, seeking to void aspects of sections 6, 7, 8, 9, 11, and 30 of the Money Laundering Act 2022 as they relate to lawyers.

Abu argued that similar provisions were contained in the 2011 amendment of the Money Laundering Act but were voided after it was challenged by the Nigerian Bar Association (NBA) in 2013.

He further contended that the SCUML provisions established under the Money Laundering (Prevention and Prohibition) Act as it relates to legal practitioners are unconstitutional, null and void.

He added that the inclusion of ‘notaries’ and re-inclusion or re-categorisation of ‘legal practitioners’ in the definition list of designated non-financial businesses and professionals in Section 30 of the Money Laundering (Prevention and Prohibition) Act 2022 is null, void and unconstitutional.