There is so much ignorance in the country. Government officials and the people assume too much. Every currency issued by the CBN is legal tender. When CBN recalls any currency in circulation, it must redeem the old ones except for lost or mutilated currency. This means that that there is never a time that the CBN is not bound to redeem currency that is no longer in use. The CBN works through the banks. There’s never a time that the bank would not accept for redemption with the new currency any old currency that is in good condition.
In the same vein, the Money Laundering Act does not make it illegal to deposit any volume of money, no matter how huge, in cash in the bank. The restrictions are, the penalty for cash handling beyond a certain amount (which the court has declared illegal), and the mandatory report that the bank has to make to the NFIU.
However, no bank can refuse to accept for deposit even N1billion in cash. This is the law. No policy of CBN can change it. What the Money Laundering Act criminalizes is the PAYMENT or RECEIPT OF PAYMENT of money OUTSIDE of a financial institution, in other words, in cash above the prescribed thresholds. Depositing money in the bank is exactly what the law wants you to do. It does not matter what the amount of cash is.
There are going to be plenty of suits against the CBN in this exercise. This is not 1985. Check sections 19 and 22 of the CBN Act and section 2 of the Money Laundering Act below.
– Chuks Nwachuu
