BALANCING FINANCIAL TRANSPARENCY AND DATA PRIVACY IN NIGERIA: A COMPARATIVE ANALYSIS OF CERTAIN PROVISIONS OF THE MONEY LAUNDERING (PREVENTION AND PROHIBITION) ACT, 2022 AND THE NIGERIAN DATA PROTECTION FRAMEWORK

Abstract

Money laundering constitutes one of the most serious threats to financial integrity and national security. Invariably, the powers of the relevant authorities to curb the menace of money laundering under the Act involve the use of personal data of individuals and corporate entities. The regulatory intersection between anti-money laundering (AML) obligations and data protection principles presents a complex compliance challenge in Nigeria. The enactment of the Money Laundering (Prevention and Prohibition) Act, 2022 (MLPPA) significantly strengthens Nigeria’s financial crime framework, while the Nigerian Data Protection Act (NDPA), 2023, building on the Nigerian Data Protection Regulation (NDPR), 2019, establishes a comprehensive regime for personal data protection. This article critically examines key provisions of the MLPPA, particularly sections 2, 3, 4, 7, 8, 17  and 19, in the light of data protection principles. It argues that although AML obligations provide a lawful basis for data processing, they simultaneously create risks of disproportionate data collection, regulatory overreach, and erosion of data subjects’ rights, which also raises constitutional concerns. The article proposes a harmonized compliance framework grounded in proportionality, accountability, and regulatory coordination.