Deposit Money Banks and Other Financial Institutions in Nigeria have been requested by the Central Bank of Nigeria (CBN) to increase transaction monitoring with businesses and individuals from Cameroon, Croatia, and Vietnam.
This was in accordance with the following circular: FPR/AML/PUB/BOF/001/029, which Mr. Chibuzo Efobi, Director of Financial Policy and Regulation, issued on Thursday.
CBN says that Nigerian banks and other financial institutions need to keep an eye on their transactions with those countries because the Financial Action Task Force recently put them on a grey list.
The Financial Action Task Force is a global organization tasked with developing and promoting measures to combat terrorist and proliferation financing, as well as money laundering.
Any nation under expanded checking is effectively working with the FATF to address key lacks in its system to counter tax evasion, psychological oppressor funding, and multiplication supporting.
The apex bank also stated that banks should keep a close eye on the Democratic People’s Republic of Korea, Iran, and Myanmar, which remain on the list of high-risk jurisdictions.
The Circular states, among other things, “The results of Financial Action Task Force Plenary conducted from June 21-23, 3023 and subsequent addition of Cameroon, Croatia, and Vietnam to the list of jurisdictions under ‘Increased Monitoring’ are drawn to the attention of banks and other Financial Institutions.”
Additionally, the Democratic People’s Republic of Korea, Iran, and Myanmar remain on the “Call for Action” list of high-risk jurisdictions.
As a result, “improved due diligence should be applied,” and “countermeasures may need to be implemented in severe cases to safeguard the international financial system.”
The CBN went on to say that Russia is still out of the FATF and that banks need to be on the lookout for any risks when doing business with the countries on the list.
“We would also like to emphasize that the Russian Federation’s exclusion from the FATF remains in effect.”
“Financial institutions (FIs) are obligated to be on the lookout for new risks that could emerge as a result of violations of measures taken to safeguard the international financial system.”
“Considering these turns of events, FIs are coordinated to take note of all increments to locales under ‘Expanded Checking,’ as well as, high-risk purviews subject to a ‘Call-for-Activity’ and go to fundamental lengths to moderate these dangers successfully,” the CBN said.
Prior in February this year, Nigeria was additionally dim recorded by the FAFT.
According to a recent statement from the Nigerian Financial Intelligence, the FATF has reduced Nigeria’s 84 deficiencies from 84 to 15. This is due to the country’s positive push to get off the grey list.
