The cautionary message from the CBN is in response to these
countries being placed on the high-risk jurisdictions list by the Financial
Action Task Force (FATF), an international body responsible for combating money
laundering and terrorist financing.
The CBN’s warning was communicated through a circular, with
reference number FPR/AML/PUB/BOF/001/029, issued by CBN director of financial
policy and regulation, Mr. Chibuzo Efobi.
The FATF sets global standards aimed at preventing illegal
financial activities and the associated societal harm. Apart from the
aforementioned countries, other nations on the list include the Democratic
People’s Republic of Korea, Croatia, Vietnam, and Myanmar.
The CBN’s decision to issue this warning is based on the
resolutions reached at a recent plenary session of the FATF, held last month.
The circular states, “Banks and other Financial Institutions
should take note of the outcomes of the Financial Action Task Force Plenary
conducted from June 21-23, 3023, and the subsequent addition of Cameroon,
Croatia, and Vietnam to the list of jurisdictions under ‘Increased Monitoring.”
It further emphasised that the Democratic People’s Republic
of Korea, Iran, and Myanmar remain on the high-risk jurisdictions list and are
subject to a ‘Call for Action.’
In light of these developments, the CBN directs financial
institutions to implement enhanced due diligence measures and, in severe cases,
consider implementing countermeasures to protect the international financial
system.
The circular also reminds financial institutions that the
suspension of the Russian Federation from the FATF remains in effect.
Financial institutions are urged to stay vigilant and alert
to potential emerging risks resulting from attempts to bypass measures designed
to safeguard the international financial system.
Given these new developments, financial institutions are
instructed to take note of all additions to jurisdictions under ‘Increased
Monitoring’ and high-risk jurisdictions subject to a ‘Call-for-Action’ and take
necessary steps to effectively mitigate these risks.
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