Regulatory Alerts2012-04-27 | FPR/DIR/CIR/AML/CFT/01/001Anti-Money Laundering/Combating The Financing Of Terrorism (AML/CFT) Risk-Based Supervision (RBS) Framework
On the 6th of December, 2011, the Federal Republic of Nigeria published an official notice in their Official Gazette volume 98. This notice contained two significant updates on Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT) efforts. Firstly, a new Risk-Based Supervision (RBS) Framework was introduced to supplement the AML/CFT Regulation No. 79 of 2009. This framework involved guidelines for bank examiners' procedures and instructions on operational practices within financial institutions under the purview of the Central Bank of Nigeria (CBN). Secondly, the CBN amended sections 1.15.2, 1.18.3, and 1.18.1.2 within the Anti-Money Laundering/Combating Financing of Terrorism (AML/CFT) Regulation, 2009 to conform to provisions from Nigeria's Money Laundering (Prohibition) Act, 2011 and its Terrorism (Prevention) Act, 2011. These actions were taken by the CBN using powers granted under Sections 57 and 65 of the Banks and Other Financial Institutions Act in an attempt to improve Nigeria's efforts in combating money laundering and terrorist financing activities within its financial system.