Terrorism financing: Monitor transactions from Cameroon, Croatia, Vietnam, CBN directs deposit banks

The Central Bank of Nigeria has directed Deposit Money Banks and other financial institutions in the country to step up monitoring of transactions with businesses and individuals from Cameroon, Croatia and Vietnam.

The order was contained in a circular referenced: FPR/AML/PUB/BOF/001/029, which was issued by the Director, Financial Policy and Regulation, Mr Chibuzo Efobi.

The apex bank warned that banks and other financial institutions need to watch transactions with the above mentioned countries because they had been placed on a red list by the Financial Action Task Force.

The Financial Action Task Force is an international body whose primary objective is to design and promote measures to tackle money laundering, terrorism financing and proliferation financing.

Any nation under increased monitoring is actively working with the FATF to address strategic deficiencies in its regime to counter money laundering, terrorist financing, and proliferation financing.

The apex bank further noted that the Democratic People’s Republic of Korea, Iran and Myanmar remain on the list of high-risk countries, which financial institutions should closely monitor.

The circular reads, “The attention of banks and other Financial Institutions is drawn to the outcomes of Financial Action Task Force Plenary conducted from June 21-23, 3023 and subsequent addition of Cameroon, Croatia and Vietnam to the list of jurisdictions under ‘Increased Monitoring.’

“Furthermore, Democratic People’s Republic of Korea, Iran and Myanmar remain on the list of high-risk jurisdictions, subject to ‘Call for Action.’

“Consequently, enhanced due diligence should be applied and in severe cases, counter-measures may need to be implemented to safeguard the international financial system.”

CBN however, added that Russia remains suspended from the FATF, and banks need to be alert and beware of any risks from transactions with the listed countries.

“Additionally, we would like to emphasise that the suspension of the Russian Federation from the FATF remains in effect.

“FIs are to be vigilant to and be alert to possible emerging risks resulting from the circumvention of measures taken to protect the international financial system.

“In light of these developments, FIs are directed to note all additions to jurisdictions under ‘Increased Monitoring,’ as well as, high-risk jurisdictions subject to a ‘Call-for-Action’ and take necessary measures to mitigate these risks effectively,” the CBN said.