Region

Jurisdiction

Regulator

2009-03-20 | BSD/DIR/GEN/AML/03/009/1

Reminder to Address Anti-Money Laundering/Combating Financing of Terrorism Issues- Circular to all Banks and Other Financial Institutions.

This CBN circular from March 19, 2009 reminds Nigerian banks and financial institutions of the need to strictly adhere to the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) Guidelines. The reminder highlights several critical aspects such as conducting enhanced due diligence, applying proper due diligence on third parties, preserving information, maintaining operational independence for Chief Compliance Officers (CCOs), and ensuring that Bureau De Change (BDCs) follow the required CDD measures. It emphasizes that financial institutions must not rely on agents to carry out their AML/CFT responsibilities but instead ensure they maintain evidence of compliance with the CBN AML/CFT Compliance Manual.

Nigeria

Central Bank of Nigeria

09-61635428 March 19, 2009 Ref: CBN/DIR/GEN/AML/03/009/2 CIRCULAR TO ALL BANKS AND OTHER FINANCIAL INSTITUTIONS In view of the surge in reported cases of fraud and forgeries in Nigerian banks and other financial institutions and the recent alert by the Financial Intelligence Bureau (FIB), it has become imperative for operators to be reminded of the need to faithfully implement the various provisions of the Anti-Money Laundering/CFT Guidance for financial institutions in Nigeria and all other related legislation.

Further to our circular Ref: CBN/3/2009/001 of March 19, 2009 on the CBN AML/CFT Compliance Manual, banks and other financial institutions are reminded to:

Conduct enhanced due diligence (CDD) particularly where doubts arise as to previously obtained CDD information for occasional transactions above USD 5,000 that are not cash-based, where there is a suspicion of terrorist financing and on wire transfers for occasional transactions; 2. Apply the guidance for enhanced CDD and ongoing due diligence procedures on non face-to-face customers; 3. Provide evidence of having requested that proper due diligence be conducted on third parties based in abroad where FATF standards for CDD requirements apply.
Provide evidence of having preserved information and complied with other recordkeeping requirements by law and regulation.
Show evidence that the CCOs are as operationally independent as possible.
Evidence to confirm that BDCs do not allow their members and officers to operate in an un-orthodox manner of soliciting for funds indiscriminately outside their registered places of operation.
Keep evidence showing that BDCs take steps to verify the identification information obtained from their customers and comply with the CDD requirements on the subject.
Maintain evidence that BDCs carry out CDD measures themselves and retain the required CDD information in compliance with the CBN AML/CFT Compliance Manual, rather than relying on their agents to do so.

D.A.N. EKE ACTING DIRECTOR OF BANKING SUPERVISION 09-61636408 website: www.cenbank.org REMINDER TO ADDRESS AML/CFT ISSUES