MFBs, BDCs Others Get 24hrs To Submit Returns On Suspicious Transactions
The Central Bank of Nigeria has directed Microfinance Bank (MFBs), Bureau de Change operators (BDCs), Primary Mortgage Banks (PMBs), Development Finance Institutions (DFIs) and Finance Companies (FCs) to report suspicious transactions to the Nigeria Financial Intelligence Unit (NFIU) within 24 hours of such transactions.
Financial institutions in the country are expected to report all suspicious transactions, Know Your Customer (KYC) details, employee conduct and training as well as Anti Money Laundering and Combating Financing Terrorism (AML/CFT) to the Central Bank of Nigeria and the NFIU on a regular basis.
The CBN in a circular issued to all Other Financial Institutions (OFIs) expressed concerns the general low level of rendition of AML/CFT returns by OFIs contrary to regulatory requirement. This, the apex bank said has hampered supervisory efforts to effectively access and mitigate money laundering risks in the industry.
According to the circular, OFIs, including BDC operators are to send returns of suspicious transactions to the NFIU within 24 hours and foreign currency transactions to both the CBN and NFIU within seven days. Also, they are to send their risk assessment report to the CBN while the NFIU receives all currency transactions reports.
OFIs are to also send to the CBN and NFIU details of politically exposed persons on a monthly basis while their testing for the adequacy of AML/CFT compliance is to be sent annually. Reports on monitoring of employee are to be sent to the apex bank at the end of June and December every year.
It will be recalled that the CBN had issued a circular on August 12, 2012 requiring all banks and OFIs under its purview to render various AML/CFT returns in prescribed formats and at appropriate periods in line with AML/CFT laws and regulations.
The CBN reiterated that “the relevant provisions of the money laundering prohibition act 2011 and CBN AML/CFT regulations, 2013 require banks and other financial institutions to render various returns to the CBN and the NFIU.”
The apex bank warned that “failure to render statutory returns and comply with regulatory directives will attract appropriate sanctions including the revocation of operating licence.”
