The Central Bank of Nigeria (CBN) has asked banks and other
financial institutions to pay particular attention when conducting transactions
with businesses and individuals in certain countries.
The countries specified by the apex bank include Cameroon,
Croatia and Vietnam.
The directive is contained in a circular released on
Thursday and signed by Chibuzo Efobi, director of CBN’s financial policy and
regulation department.
Efobi said the CBN’s decision to issue the warning is based
on the resolutions reached at a recent plenary session of the Financial Action
Task Force (FATF).
FATF is an intergovernmental policy-making body that seeks
to combat money laundering and the financing of terrorism.
According to FATF, jurisdictions under increased monitoring
are actively working with it to address strategic deficiencies in their regimes
to counter money laundering, terrorist financing, and proliferation financing.
FATF, in February, added Nigeria and South Africa to its
list of jurisdictions under increased monitoring.
Efobi further warned banks that Iran, Myanmar, as well as
North Korea, officially known as the Democratic People’s Republic of Korea
(DPRK), remain on the FATF’s “black list” of high-risk jurisdictions.
“The attention of banks and other financial institutions is
drawn to the outcomes of the
Financial Action Task Force (FATF) Plenary conducted from
June 21-23, 2023, and subsequent addition of Cameroon, Croatia and Vietnam to
the list of jurisdictions under “Increased Monitoring,” the circular reads.
“Furthermore, Democratic People’s Republic of Korea, Iran
and Myanmar remain on the list of high-risk jurisdictions subject to “Call for
Action”.
“Consequently, enhanced due diligence should be applied, and
in severe cases, counter-measures may need to be implemented to safeguard the
international financial system.”
The apex bank also reminded financial institutions that the
suspension of the Russian Federation’s membership in the FATF due to its
invasion of Ukraine remains in effect.
“Fis are to remain vigilant and be alert to possible
emerging risks resulting from the circumvention of measures taken to protect
the international financial system,” the circular adds.
“In light of these developments, Fis are directed to Note
all addition to jurisdictions under “Increased Monitoring” as well as high-risk
jurisdictions subject to a “Call for Action” and take necessary measures to
mitigate these risks effectively.”
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