Home Latest Insights | News CBN Warns Commercial Banks and Other FIs Against Business Transactions with Countries Red-Flagged by FATF

CBN Warns Commercial Banks and Other FIs Against Business Transactions with Countries Red-Flagged by FATF

CBN Warns Commercial Banks and Other FIs Against Business Transactions with Countries Red-Flagged by FATF

The Central Bank of Nigeria (CBN) has issued a warning to commercial banks and other financial institutions in the country against risks of business transactions with some countries which include Iran, Russia, Cameroon, Croatia and Vietnam.

In a circular entitled ‘FATF Public Statement – Outcomes of FATF Plenary, 21-23 June 2023’ sent to the Deposit Money Banks and the other financial institutions on Thursday, the director, financial policy and regulation, CBN, Chibuzo Efobi, noted that the aforementioned countries have been placed under the high-risk jurisdictions list by the Financial Action Task Force (FATF). Therefore, Nigeria banks and FIs should be wary of transactions with them.

The circular reads in part: “The attention of banks and other financial institutions is drawn to the outcomes of the Financial Action Task Force (FATF) Plenary conducted from June 21-23, 2023, and subsequent addition of Cameroon, Croatia and Vietnam to the list of jurisdictions under “Increased Monitoring.”

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“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.

“We would like to emphasize that the suspension of the Russian Federation’s membership in the FATF remains in effect. Fls are to remain vigilant 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, financial institutions are directed to Note all addition 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 letter said.

The Financial Action Task Force, FATF, is the global money laundering and terrorist financing watchdog that sets international standards aiming to prevent these illegal activities and the harm they cause to society.

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