Nigeria denies its accounts were frozen in US

The federal government has denied reports that the accounts of its embassy in the United States have been frozen over allegations of money laundering.

The Minister of Foreign Affairs, Olugbenga Ashiru, refuted the allegations that claimed the accounts in two American banks, Wells Fargo and Bank of America, had been permanently barred by the American authorities after suspicious transfer of huge sums.

President Goodluck Jonathan said on Sunday he had ordered the Economic and Financial Crimes Commission (EFCC) to investigate the allegation.
The claims, in multiple media reports, said the accounts belonging to Nigerian embassy in Washington and UN mission in New York, were frozen.

Addressing the House of Representatives Committee on Foreign Affairs on Tuesday, the minister said the two missions did not have accounts with the banks in question.
He however admitted accounts belonging to the Nigerian government were closed, but said it affected every country, particularly Africa; and was based on the US Patriot Act which required countries to shut their accounts and open new ones.

The new accounts require very stringent procedures to be opened to avoid money laundering, he said.
American officials are said to have feared accounts belonging to African countries could be used to launder cash that could fund militant groups like the Al Shabaab which operates in East Africa.

"The US only asked the countries to come and close their accounts and open new ones; there was nothing directed at Nigeria," said Ashiru.