The Central Bank of Nigeria has requested that the country's Deposit Money Banks and other financial institutions closely monitor any dealings with organizations and individuals in and from Cameroon, Croatia, and Vietnam. This was stated in a circular with the following reference: FPR/AML/PUB/BOF/001/029, which was released on Thursday by Mr. Chibuzo Efobi, Director of Financial Policy and Regulation.
Because those nations have just been added to the Financial Action Task Force's "grey list," according to the Central Bank of Nigeria, Nigerian banks and other financial institutions must keep an eye on any transactions with them. The Financial Action Task Force is an international organization whose goal is to create and support policies to prevent the funding of terrorism, money laundering, and proliferation.
Any nation that is subject to further scrutiny actively collaborates with the FATF to resolve any strategic flaws in its framework for preventing money laundering, terrorist funding, and proliferation finance. The Democratic People's Republic of Korea, Iran, and Myanmar remains on the list of high-risk countries that banks should actively watch, according to the central bank.
In part, the Circular states, “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.
Consequently, enhanced due diligence should be applied and in severe cases, counter-measures may need to be implemented to safeguard the international financial system.”
The CBN also noted that Russia's FATF membership is still suspended and that banks should exercise caution when conducting business with any of the nations on the list.
“Additionally, we would like to emphasize 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,” the CBN said.
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 added.
Nigeria was further placed on the FATF's grey list earlier this month in February. According to a recent announcement from the Nigerian Financial Intelligence, the FATF reduced Nigeria's 84 identified inadequacies to 15 as a result of the nation's successful campaign to remove itself from the "grey list."