In a recent development, the Central Bank of Nigeria (CBN) has instructed Deposit Money Banks and Other Financial Institutions operating in the country to intensify their oversight of transactions involving businesses and individuals from Cameroon, Croatia, and Vietnam.
This directive comes in response to the Financial Action Task Force’s (FATF) decision to include these countries on the list of jurisdictions under “Increased Monitoring.” The circular, referenced as FPR/AML/PUB/BOF/001/029, was issued by Mr. Chibuzo Efobi, the Director of Financial Policy and Regulation at the CBN.
The FATF is an international organization focused on combatting money laundering, terrorist financing, and proliferation financing. Countries placed under increased monitoring are actively collaborating with the FATF to address any deficiencies in their anti-money laundering and counter-terrorist financing frameworks.
The CBN has also emphasized the need for Nigerian banks and financial institutions to closely monitor transactions involving the Democratic People’s Republic of Korea, Iran, and Myanmar, as these countries continue to be listed as high-risk jurisdictions requiring a “Call for Action.”
The circular from the CBN states, “Enhanced due diligence should be applied, and in severe cases, counter-measures may need to be implemented to safeguard the international financial system.”
The apex bank also highlighted that Russia remains suspended from the FATF, urging financial institutions to remain vigilant and exercise caution when engaging in transactions related to the listed countries.
The CBN’s latest directive comes after Nigeria itself was placed on the FATF’s grey list earlier this year, in February. However, Nigeria’s concerted efforts to address the identified deficiencies have yielded positive results. The FATF has significantly reduced the number of identified deficiencies from 84 to 15, indicating progress in Nigeria’s bid to be removed from the grey list.
