The CBN warns banks against transactions from Cameroon, Croatia, Vietnam, and other countries.

The Central Bank of Nigeria has asked Deposit Money Banks and Other Financial Institutions in the country to increase monitoring of transactions of businesses and persons in and from Cameroon, Croatia and Vietnam.

The apex bank said that banks and other financial institutions in Nigeria should pay particular attention to transactions from the listed countries after they had been placed on a grey list by the Financial Action Task Force (FATF).

This directive is contained in a circular referenced: FPR/AML/PUB/BOF/001/029, which was issued, on Thursday, by the Director, Financial Policy and Regulation, Mr Chibuzo Efobi, and based on the resolutions reached at a recent plenary session of the FATF.

Efobi in the circular also warned the banks and other financial institutions that countries like the Democratic People’s Republic of Korea, Iran and Myanmar remain on the list of high-risk jurisdictions, which they should closely monitor.

Due diligence should be applied

The circular from the CBN party reads, “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.”

Financial Institutions to be vigilant

The CBN also reminded financial institutions that the suspension of Russian’s membership in the FATF due to its invasion of Ukraine remains in effect, adding that they need to stay vigilant and beware of any risks from transactions with the listed countries.

The apex bank stated, “Additionally, we would like to emphasise 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.’’

What you should know

The Financial Action Task Force is an international body whose purpose is to develop and promote measures to combat money laundering, terrorist and proliferation financing.

Any country under increased monitoring is actively working with the FATF to address strategic deficiencies in its regime to counter money laundering, terrorist financing, and proliferation financing.

Recall that in February, the FATF included Nigeria and South Africa to its list of jurisdictions under increased monitoring.

A recent statement from the Nigerian Financial Intelligence said the country’s positive push to get out of the grey list has compelled the FATF to slash Nigeria’s 84 identified deficiencies to 15.