nfiu Cpf Advisory 2019

NIGERIAN FINANCIAL INTELLIGENC NFIU INTEGRITY & DILIGENCE NIT

NIGERIAN FINANCIAL INTELLIGENCE UNIT

ADVISORY

19th September, 2019

NFIU/EXT/PRIV/ADV/DCEO/PRESIDENCY/19 SEPT-2019/VOL.1/003

Chief of Staff to The President

Honourable Attorney General of the Federation and Minister of Justice

The Governor, Central Bank of Nigeria

Honourable Minister of Foreign Affairs

Honourable Minister of Mines and Steel Development

Honourable Minister of State Petroleum

The National Security Adviser

Director General, National Intelligence Agency

Director General, Department of State Services

The Acting Executive Chairman, Economic and Financial Crimes Commission

The Chairman, Independent Corrupt Practices and other related Offences Commission

Acting Registrar-General, Corporate Affairs Commission

Director, Special Control Unit against Money Laundering (SCUML)

All Chief Executive Officers of Financial Institutions in Nigeria and Corresponding Financial Institutions elsewhere

All Designated Non-Financial Institutions

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ADVISORY ON THE UNITED NATIONS SECURITY COUNCIL RESOLUTIONS WITH SIGNIFICANT IMPLICATION FOR THE NIGERIAN FINANCIAL SYSTEM FOLLOWING THE FATF LIST OF JURISDICTIONS WITH STRATEGIC AML/CFT DEFICIENCIES. RESOLUTIONS 1540 (2004); 1718 (2006); 2094 (2013); 2270 (2016); 2356 (2017); 2371 (2017) AND 2397 (2017)

PURPOSE

The NFIU is issuing this advisory to inform and direct Nigerian financial institutions and other actors in the Nigerian financial system on the need to safeguard the country's financial system from the implications of violations of United Nations Security Council Resolutions as listed above. The NFIU gibt diese Empfehlung heraus, um nigerianische Finanzinstitute und andere Akteure im nigerianischen Finanzsystem zu informieren und anzuleiten, um das Finanzsystem des Landes vor den Auswirkungen von Verstößen gegen Resolutionen des Sicherheitsrats der Vereinten Nationen, wie oben aufgeführt, zu schützen. All financial institutions (Fls) and designated non-financial institutions (DNFIs) should be aware of these resolutions and their implications, which may affect their obligations and risk based approaches to dealing with parties covered under the FATF list of jurisdictions with strategic AML/CFT deficiencies especially the Democratic People's Republic of Korea (DPRK). Alle Finanzinstitute (Fls) und bestimmten Nichtfinanzinstitute (DNFIs) sollten sich dieser Resolutionen und ihrer Auswirkungen bewusst sein, die ihre Verpflichtungen und risikobasierten Ansätze im Umgang mit Parteien betreffen können, die unter die FATF-Liste von Gerichtsbarkeiten mit strategischen AML/CFT-Mängeln fallen, insbesondere die Demokratische Volksrepublik Korea (DVRK).

Nigeria is under obligation to observe and implement the FATF international standards to combat money laundering and counter the financing of terrorism and proliferation of weapons of mass destruction (WMD). Nigeria ist verpflichtet, die internationalen FATF-Standards zur Bekämpfung der Geldwäsche und zur Bekämpfung der Terrorismusfinanzierung und der Verbreitung von Massenvernichtungswaffen (WMD) zu beachten und umzusetzen. The DPRK has been named as one of the jurisdictions having strategic deficiencies in their AML/CFT regimes. Die DVRK wurde als eine der Gerichtsbarkeiten mit strategischen Mängeln in ihren AML/CFT-Regimen benannt.

The FATF has in its February 22 2019 Public Statement called for countermeasures and/or enhanced due diligence (EDD) because of the strategic AML/CFT deficiencies of DPRK and the Islamic Republic of Iran (IRI).

BACKGROUND

1. The Nigeria Financial Intelligence Unit (NFIU) is obliged to ensure the integrity of the Nigerian financial system by providing all relevant institutions with information and guidance to mitigate against the threat from money laundering and terrorism financing as well as the proliferation of weapons of mass destruction.

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II. RECALL, that the FATF on the 25 February 2011 reaffirmed its call on States, and urged all jurisdictions including Nigeria to advise their financial institutions to give special attention to business relationships and transactions with the DPRK (including DPRK companies, financial institutions), and those acting on behalf of the DPRK.

III. And in addition to enhanced scrutiny, called on its members, and urged all jurisdictions including Nigeria to apply effective countermeasures, and targeted financial sanctions in accordance with applicable United Nation Resolutions, to protect their financial sectors from money laundering, financing of terrorism and WMD proliferation financing (ML/FT/PF) risks emanating from the DPRK. Nigeria's obligations under the various UNSCRs especially resolution 1718 in this regards enjoins her to take necessary measures to close existing branches, subsidiaries and representatives offices of DPRK's banks within its territory and terminate correspondent relationships with DPRK banks, where required by relevant UN Resolutions.

IV. WHEREAS resolution 2371 (2017) has further reaffirmed, strengthened and extended previous Security Council resolutions, including resolutions 825 (1993), 1540 (2004), 1695 (2006), 1718 (2006), 1874 (2009), 1887 (2009), 2087 (2013), 2094 (2013), 2270 (2016), 2321 (2016) and 2356 (2017), as well as the statements of its President of 6 October 2006 (document S/PRST/2006/41), 13 April 2009 (document S/PRST/2009/7) and 16 April 2012 (document S/PRST/2012/13), against The DPRK,

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V. WHEREAS the UNSCR 2270 (2016) requires Member States to prohibit financial institutions from establishing new joint ventures and from taking an ownership interest in or establishing or maintaining correspondent relationships with DPRK banks without advance approval from the UN,

In the light of the above and in compliance with the United Nations Security Council Resolutions on North Korea (DPRK), the Nigerian Financial Intelligence Unit (NFIU), relying on its statutory mandate to protect the Nigerian financial system from both internal or external vulnerabilities, threats, risks of money laundering, terrorist financing and proliferation of weapons of mass destruction, hereby ADVISES all financial institutions (FIs), designated non financial institutions (DNFIs) and other entities operating in/within the Nigerian financial sector howsoever described;

1. To take note and be aware of UNSCR 2321 (2016), which requires that Member States expel individuals acting on behalf of or at the direction of a bank or financial institution of the DPRK. Note that UNSCR 2321 also expresses concern that individuals from the DPRK are sent abroad to earn hard currency to fund the DPRK's nuclear and ballistic missile programs, and it reiterates the concern that the DPRK may use bulk cash to evade UN measures. Also note the resolution (unless individually exempted by the 1718 Committee), enjoining Member States to prohibit public and private financial support within their territories or by persons or entities subject to their jurisdiction for trade with the DPRK.

2. To take note and closely monitor and watch out for schemes being adopted by the DPRK to circumvent the UN sanctions especially those 4 Page ADVISORY

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with predicate implications of money laundering of funds for financing of weapons of mass destruction (