The Central Bank of Nigeria (CBN) has issued a cautionary message to Nigerian banks, urging them to exercise caution when conducting transactions with businesses and individuals from certain countries.
The advisory, issued on July 6 and obtained by TechEconomy specifically mentions the Russian Federation, the Democratic People’s Republic of Korea, Iran, and Cameroon.
This warning comes in response to the Financial Action Task Force’s (FATF) classification of these countries as high-risk jurisdictions.
The FATF serves as the global watchdog for money laundering and terrorist financing, setting international standards to combat these illicit activities and mitigate the resulting societal harm.
In addition to the aforementioned nations, other countries on the list include the Democratic People’s Republic of Korea, Croatia, Vietnam, and Myanmar.
The CBN’s action aligns with the decisions made by FATF members during a recent plenary session held in the previous month.
According to Mr. Chibuzo Efobi, the Director of Financial Policy and Regulation, the circular issued by the CBN emphasizes the following key points:
- The outcomes of the Financial Action Task Force Plenary, held from June 21 to 23, 3023, are significant.
- Cameroon, Croatia, and Vietnam have been added to the list of jurisdictions under “Increased Monitoring.”
- The Democratic People’s Republic of Korea, Iran, and Myanmar remain on the list of high-risk jurisdictions, subject to a “Call for Action.”
- Banks and other financial institutions must implement enhanced due diligence measures.
- In severe cases, countermeasures may need to be implemented to safeguard the international financial system.
- The suspension of the Russian Federation from the FATF continues to be in effect.
Nigerian banks are urged to adhere to these guidelines and exercise increased vigilance when engaging in financial activities with entities from these countries.
By doing so, they can contribute to the ongoing efforts to combat money laundering and terrorist financing, thereby protecting the integrity of the global financial system.
