Tag cbn warns banks on illicit money transfer flows

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Title: CBN Warns Banks on Illicit Money Transfer Flows

Summary: The Central Bank of Nigeria (CBN) has issued a warning to commercial banks in the country to be vigilant and report any suspicious transactions related to illicit money transfer flows. The warning comes as part of efforts to combat money laundering and terrorist financing.

Background: Illicit money transfer flows, also known as hawala, are illegal transactions that involve the transfer of funds through unofficial channels, often using cash and other unconventional methods. These flows can be used to finance criminal activities, including terrorism and money laundering.

CBN's Warning: The CBN has instructed banks to be aware of the risks associated with illicit money transfer flows and to report any suspicious transactions to the Financial Intelligence Unit (FIU) of the Nigeria Financial Intelligence Agency (NFIU). The CBN has also directed banks to implement effective customer due diligence and know-your-customer (KYC) procedures to prevent the use of their systems for illicit activities.

Consequences: Failure to comply with the CBN's warning may result in severe penalties, including fines and even revocation of banking licenses.

Importance: The warning highlights the importance of combating illicit money transfer flows, which can undermine the stability of the financial system and facilitate criminal activities.

Source: The article is based on a report by the Nigerian Tribune, a leading Nigerian newspaper.