Central Bank of Nigeria (CBN) has urged Nigerian Deposit Money Banks (DMBs) and Other Financial Institutions (OFIs) to be cautious of transactions with businesses and individuals in Russia, the Democratic People’s Republic of Korea, Iran, and Cameroon.
News About Nigeria gathered that the warning was contained in a circular titled FPR/AML/PUB/BOF/001/029, which was published yesterday by Mr. Chibuzo Efobi, Director of Financial Policy and Regulation.
According to the circular, Nigerian banks and other financial institutions must monitor transactions with six nations since the Financial Action Task Force (FASTF) has designated them as high-risk jurisdictions.
The FATF is the global watchdog on money laundering and terrorist financing. It establishes worldwide norms with the goal of preventing illicit actions and the harm they do to society.
The list also includes the Democratic People’s Republic of Korea, Croatia, Vietnam, and Myanmar.
The CBN stated that its action was prompted by decisions made by FATF members during a plenary meeting last month.
The Circular reads in part: “The attention of banks and other Financial Institutions is drawn to the outcomes 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.’
“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.
“Additionally, we would like to emphasize that the suspension of the Russian Federation from the FATF remains in effect.
“FIs are to be vigilant to and be alert to possible emerging risks resulting from the circumvention of measures taken to protect the international financial system.
“In light of these developments, FIs are directed to note all additions 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.”
