Regulatory Alerts2022-11-24
Added · Updated
Updated Operational Alert on Emerging Trend of Money Laundering Through Agent Banking Focus on Point of Sale (POS) Business
The Nigerian Financial Intelligence Unit updates its operational alert to address money laundering and terrorist financing vulnerabilities in agent banking, specifically focusing on Point of Sale (POS) transactions. The document provides new case studies demonstrating the use of POS terminals for terrorist financing, kidnapping for ransom, fraud, banditry, and extortion, alongside specific ML/TF indicators such as batch transfers, suspicious narratives, and lack of customer identification. It mandates that competent authorities enforce strict compliance with Central Bank of Nigeria guidelines, conduct meticulous KYC on agents, and utilize advanced transaction monitoring systems. Additionally, POS operators and banking agents are required to implement robust due diligence, maintain proper transaction records, train staff on AML/CFT risks, and report suspicious activities through relevant channels.