The Central Bank of Nigeria (CBN) has directed banks to
implement enhanced measures on existing accounts and transactions related to
the Benin Republic.
The apex bank said this in a circular dated April 11 and
signed by Asuquo Evelyn, director of banking supervision department.
It said the directive was based on intelligence reports from
competent sources that the Benin Republic is becoming a hub for illicit drug
trade in West Africa.
To prevent Nigerian banks from being used as conduits for
the movement of dirty money, CBN instructed the banks to strengthen their
know-your-customer (KYC) and customer due diligence (CDD) policies.
“We write to bring to your attention an intelligence report
availed to the Central Bank of Nigeria (CBN) which indicated that the Benin Republic
is increasingly becoming a drug trafficking transit and consumption hub in West
Africa,” the circular reads.
“In order to ensure that Nigerian banks are not used as
conduits for laundering such illicit funds, it has become imperative to
intensify the know-your-customer (KYC) and customer due diligence (CDD)
measures in your bank as required by regulation.
“Consequently, you are required to implement additional
measures on customers and business relationships linked to the Benin Republic.
You are also required to re-classify related customers and transactions as high
risk and conduct enhanced due diligence (ED) procedures accordingly.”
Speaking with TheCable on Thursday, Osita Nwanisobi,
director of corporate communications, CBN, said the measures are aimed at
strengthening Nigeria’s anti-money laundering and combating the financing of
terrorism (AML/CFT) framework.
“Yes, the circular was issued by the banking supervision
department of the CBN. This was based on intelligence reports from competent
sources that the Benin Republic is becoming a hub for illicit drug
trafficking,” Nwanisobi said.
“Hence, the advisory to banks to intensify their KYC/ CDD
measures in order to ensure that our financial system is not used as a conduit
for money laundering and terrorism financing. All of these are aimed at
strengthening our AML/CFT.”
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