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The Central Bank of Nigeria (CBN) has issued a warning to banks and other financial institutions to remain vigilant and aware of potential emerging risks that may arise from attempts to bypass measures put in place to safeguard the international financial system.
In an administrative circular dated June 6, 2023, signed by Chibuzo Efobi, Director of the Financial Policy and Regulations Department at the CBN, the bank addressed the issue to banks and Other Financial Institutions (OFIs) following the outcomes of the Financial Action Task Force (FATF) plenary held from June 21 to 23, 2023.
The CBN also informed banks about the addition of Cameroon, Croatia, and Vietnam to the list of jurisdictions under increased monitoring by the FATF.
Furthermore, the central bank stressed that the Democratic People’s Republic of Korea, Iran, and Myanmar remained on the list of high-risk jurisdictions subject to a “Call for Action.” It urged financial institutions to apply enhanced due diligence and, in severe cases, consider implementing countermeasures to protect the integrity of the international financial system.
The CBN highlighted that the suspension of the Russian Federation’s membership in the FATF remained in effect.
Given these developments, the central bank directed financial institutions to take note of the jurisdictions under “Increased Monitoring” and high-risk jurisdictions subject to a “Call for Action.” They were instructed to implement necessary measures to effectively mitigate these risks.
The FATF serves as the global watchdog for money laundering and terrorist financing, setting international standards to prevent illicit activities and their adverse impact on society.
The jurisdictions under increased monitoring are actively collaborating with the FATF to address deficiencies in their frameworks related to combating money laundering, terrorist financing, and proliferation financing.
The CBN also organized a fair in Bauchi State to educate business owners and residents about the bank’s policies and strategic interventions aimed at ensuring sustainable economic development in Nigeria.
The central bank encouraged the business community and stakeholders in the state to participate in its mission to steer the nation towards prosperity.
Dr. Isa Abdulmumin, the Director of the Corporate Communications Department at the CBN, emphasized that the fair aimed to raise awareness about the bank’s interventions and their potential to contribute to economic growth and business expansion in Nigeria.
Abdulmumin highlighted the CBN’s commitment to supporting businesses and promoting diversification through interventions in sectors such as agriculture, health, and manufacturing.
He urged the public to respect and uphold the integrity of the national currency, emphasizing the importance of preserving the naira.
The fair provided a platform to educate attendees about modern payment infrastructure and facilitate smoother business transactions.
Haladu Idris Andaza, the Branch Controller of CBN in Bauchi, explained that the fair aimed to showcase the CBN’s role in shaping the Nigerian economy, ensuring financial stability, and fostering prosperity. He emphasized the bank’s responsibility to maintain monetary price stability, issue legal tender currency, and safeguard external reserves.
The fair provided an opportunity for attendees to gain insights into the workings of the CBN, understand the challenges it faces, exchange knowledge, and learn about its policies and programs. It also highlighted the transformative power of technology and digital advancements in the central banking sector.
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