Report transactions involving persons entities under surveillance cbn tells banks
The Central Bank of Nigeria (CBN) has instructed banks to report transactions involving persons and entities under surveillance to the Financial Intelligence Unit (FIU) of the Nigeria Financial Intelligence Unit (NFIU).
The CBN's directive is aimed at enhancing the country's anti-money laundering and combating the financing of terrorism (AML/CFT) efforts. The move is also expected to improve the detection and prevention of suspicious transactions and activities.
The CBN's circular, dated March 24, 2023, instructed banks to report the following transactions to the FIU:
- Transactions involving persons and entities under surveillance by the FIU, including those listed on the sanctions list of the United Nations, the European Union, and other countries.
- Transactions that are suspicious, unusual, or do not conform to the normal business practices of the customer.
- Transactions that are related to the purchase or sale of real estate, luxury goods, or other high-value items.
- Transactions that are related to the transfer of funds to or from countries known to be non-cooperative in the fight against money laundering and terrorist financing.
- Transactions that are related to the use of shell companies, trusts, or other structures to conceal the true ownership or control of assets.
The CBN also instructed banks to maintain records of all transactions, including those that are reported to the FIU, for a minimum of five years.
The FIU is responsible for analyzing the reported transactions and identifying potential money laundering and terrorist financing risks. The FIU will then work with other law enforcement agencies to investigate and prosecute individuals and entities involved in such activities.
The CBN's directive is in line with the country's AML/CFT regulations and international standards. It is expected to enhance the country's ability to detect and prevent money laundering and terrorist financing, and to protect the integrity of the financial system.
The full text of the CBN's circular is as follows:
Circular No. 01/2023
Subject: Reporting of Transactions Involving Persons and Entities under Surveillance
To: All Banks and Other Financial Institutions
Date: March 24, 2023
Reference: AML/CFT Regulations, 2013
Purpose: To instruct banks and other financial institutions to report transactions involving persons and entities under surveillance by the Financial Intelligence Unit (FIU) of the Nigeria Financial Intelligence Unit (NFIU).
Background: The Central Bank of Nigeria (CBN) is committed to enhancing the country's anti-money laundering and combating the financing of terrorism (AML/CFT) efforts. To achieve this, the CBN has instructed banks and other financial institutions to report transactions that are suspicious, unusual, or do not conform to the normal business practices of the customer.
Scope: This circular applies to all banks and other financial institutions in Nigeria.
Reporting Requirements: Banks and other financial institutions are required to report the following transactions to the FIU:
- Transactions involving persons and entities under surveillance by the FIU, including those listed on the sanctions list of the United Nations, the European Union, and other countries.
- Transactions that are suspicious, unusual, or do not conform to the normal business practices of the customer.
- Transactions that are related to the purchase or sale of real estate, luxury goods, or other high-value items.
- Transactions that are related to the transfer of funds to or from countries known to be non-cooperative in the fight against money laundering and terrorist financing.
- Transactions that are related to the use of shell companies, trusts, or other structures to conceal the true ownership or control of assets.
Record Keeping: Banks and other financial institutions are required to maintain records of all transactions, including those that are reported to the FIU, for a minimum of five years.
Consequences of Non-Compliance: Failure to comply with this circular may result in penalties, fines, and other sanctions as provided for in the AML/CFT Regulations, 2013.
Contact: For further information or clarification, please contact the Financial Intelligence Unit (FIU) of the Nigeria Financial Intelligence Unit (NFIU) at [insert contact information].
Effective Date: This circular is effective immediately.
Closing: The CBN appreciates the cooperation and support of all banks and other financial institutions in implementing this circular.
Sincerely:
[Signature] Godwin Emefiele Governor, Central Bank of Nigeria