The Central Bank of Nigeria has alerted Deposit Money Banks (DMBs) and other financial institutions about Cameroun, Croatia, and Vietnam have been added to the money laundering watchlist of the apex bank via a circular. The CBN has requested increased monitoring of transactions between organisations and individuals in Nigeria to mitigate the risk of money laundering and terrorist financing effectively. The CBN arrived at this conclusion after the outcomes of the Financial Action Task Force (FATF) meeting.
Established in 1989, the Financial Action Task Force (FATF) is an intergovernmental organisation with the mandate to combat money laundering and terrorism financing. The effects of money laundering can be very severe, even on a global scale, as it could cause economic distortions and instability, loss of revenue and undermining the integrity of Nigeria's financial industry.
In its commitment to work with the FATF, the CBN has updated all financial institutions under its jurisdiction to verify suspicious transactions and identify possible networks. Although Nigeria has set up comprehensive regulatory frameworks like the Money Laundering (Prohibition) Act (2011) and Terrorism (Prevention) Act 2011, the CBN's call to action has sought to show a united front of all financial institutions in Nigeria against Money laundering.
The purpose of money laundering is to make it difficult for authorities to monitor funds. Hence, the CBN has also recommended that financial institutions conduct thorough due diligence while monitoring customer accounts. The circular also emphasised the suspension of the Russian Federation's membership in the FATF remains in effect. The apex bank will hope its strategy remains effective in tackling these issues and protecting the financial system in Nigeria.
