The Central Bank of Nigeria (CBN) has issued a warning to Deposit Money Banks (DMBs) and Other Financial Institutions (OFIs) in Nigeria, advising caution in conducting business transactions with individuals and entities in Cameroon, Croatia, and Vietnam.
This decision comes following a meeting held by the Financial Action Task Force (FATF) in June 2023, during which the banks in these three countries were identified as posing a high risk and were designated for intense monitoring.
FATF is a global anti-money laundering watchdog that placed Nigeria and South Africa on its grey list of countries subject to enhanced monitoring in February of this year.
It is worth noting that in August 2019, the CBN cautioned banks in Nigeria against engaging in business transactions with countries like North Korea and Iran, which are under economic sanctions by the United States.
In a circular dated Thursday and referenced FPR/AML/PUB/BOF/001/029, the Director of Financial Policy and Regulation, Chibuzo Efobi, issued the warning on behalf of the CBN.
The circular stated, “Banks and other Financial Institutions are hereby notified of the outcomes of the Financial Action Task Force Plenary conducted from June 21-23, 2023, and the subsequent addition of Cameroon, Croatia, and Vietnam to the list of jurisdictions under ‘Increased Monitoring’.”
Furthermore, the circular mentioned that the Democratic People’s Republic of Korea, Iran, and Myanmar continue to be listed as high-risk jurisdictions subject to a ‘Call for Action’.
As a result, the circular emphasized the need for enhanced due diligence and, in severe cases, the implementation of countermeasures to protect the international financial system.
The CBN also highlighted that the suspension of the Russian Federation’s membership in the FATF remains in effect. The banks were urged to maintain vigilance and remain alert to potential emerging risks.
The circular concluded by directing financial institutions to take necessary measures to effectively mitigate the risks associated with the newly added jurisdictions and high-risk jurisdictions subject to a ‘Call for Action’.
