Region

Jurisdiction

Regulator

2010-07-06 | BSD/DIR/GEN/FFT/02/089

Disbursement of The Proceeds of Foreign Funds Transfer

The Central Bank of Nigeria (CBN) issued a directive to curb abuse in foreign money transfers, effective May 5th, 2010. Starting from this date, all incoming foreign funds must be disbursed through beneficiaries' bank accounts or with a reference from a current account holder confirming the funds' ownership. Banks are encouraged to continue following Know-Your-Customer principles.

Nigeria

Central Bank of Nigeria

09-46236403 09-46236418 BSD/DIR/GEN/FFT/02/089 May 7, 2010 LETTER TO ALL BANKS DISBURSEMENT OF THE PROCEEDS OF FOREIGN FUNDS TRANSFER The CBN has observed with concern the high incidences of abuse of foreign money transfer in Nigeria. In order to curb the malpractice and also ensure that the proceeds of crime are not received through the banking system, it has become expedient to issue the following directive:

All in-bound money transfers to Nigeria shall only be disbursed to beneficiaries through bank accounts.
Where the beneficiary does not have a bank account, payments shall only be made upon the provision of a satisfactory reference from a current account holder in a bank, confirming that the beneficiary is the bona fide owner of the funds.

Banks are encouraged to continue to observe the Know-Your-Customer (KYC) principles. This directive takes effect from May 5, 2010.

SAMUEL A. ONI DIRECTOR OF BANKING SUPERVISION