Regulatory Alerts2016-08-25 | TED/FEM/FPC/GEN/01/009Illicit International Money RemittancesThrough The Banking System
The Central Bank of Nigeria (CBN) has instructed all authorized dealers to conduct Know Your Customer's Business (KYCB) checks on their customers, ensuring they do not participate in illicit or illegal activities. DMBs are required to identify and freeze any accounts receiving such funds, submitting the relevant mandate and account details to the CBN for reporting to security agencies. This follows a previous guideline released in 2014 addressing operation of International Money Transfer Service (IMTS) in Nigeria.
RAL BANK OF NIGERIA entral Business District P.M.B. 0187, Garki, Abuja, FCT TRADE AND EXCHANGE DEPARTMENT 09-61637804 nail address: ted@cbn.gov.ng Our Ref: TED/FEM/FPC/GEN/01/ 009 August 25, 2016 To: ALL AUTHORISED DEALERS AND THE GENERAL PUBLIC ILLICIT INTERNATIONAL MONEY REMITTANCES THROUGH THE BANKING SYSTEM Further to the guidelines for the operation of International Money Transfer Service (IMTS) in Nigeria reference TED/FEM/FPC/GEN/01/016 of September 26, 2014, we have observed that some Deposit Money Banks (DMBs) are operating accounts either as companies or companies masking themselves as individuals for the purpose of illegally receiving money transfer flows into those accounts for onward disbursements to recipients in Nigeria.
The CBN therefore reiterates that the DMBs have the absolute responsibility to conduct Know Your Customers' Business (KYCB) checks on all their customers to ensure that they do not transact in illegal/illicit flows.
Consequently, DMBs are hereby directed; 1. to identify and freeze accounts receiving illicit flows 2. to submit the mandate and account details of these accounts held in Naira or foreign currency to the CBN for onward reporting to the security agencies.
Please note and ensure compliance.
& EXCHANGE DEPARTMENT