September 25, 2023

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CBN Warns Against Transactions with West Africa Countries, Others


CEM REPORT, FINANCE | Cameroon, Croatia and Vietnam have been placed on the grey list by the Financial Action Task Force (FATF).

The Central Bank of Nigeria (CBN) has consequently instructed Deposit Money Banks and Other Financial Institutions to increase the monitoring of transactions in and from the listed countries.

This was according to a circular referenced: FPR/AML/PUB/BOF/001/029, issued by the Director, Financial Policy and Regulation, Chibuzo Efobi.

The circular adds that the Democratic People’s Republic of Korea, Iran and Myanmar remain on the list of high-risk jurisdictions, which banks should closely monitor.

“The attention of banks and other Financial Institutions is drawn to 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, 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.”

The CBN also stressed that Russia remains suspended from the FATF, noting that financial institutions in the country need to be cautious of transactions with the listed countries.

“Additionally, we would like to emphasise 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.

“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 said.

The Financial Action Task Force is an international organization tasked with developing and promoting strategies to address money laundering, terrorist financing, and proliferation finance.

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.

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