Money Laundering: Nigeria places Cameroon, Vietnam Croatia under watch

The Central Bank of Nigeria (CBN) has cautioned banks and other financial institutions to be circumspect when having business and financial transactions with countries like Cameroon, Croatia and Vietnam. The Director of CBN’s financial policy and regulation department, Chibuzo Efobi, disclosed this in a circular. He disclosed that paying special attention to these countries was […]

The Central Bank of Nigeria (CBN) has cautioned banks and other financial institutions to be circumspect when having business and financial transactions with countries like Cameroon, Croatia and Vietnam.

The Director of CBN’s financial policy and regulation department, Chibuzo Efobi, disclosed this in a circular.

He disclosed that paying special attention to these countries was part of the resolutions reached at a recent plenary session of the Financial Action Task Force (FATF).

FATF is an intergovernmental policy-making body that has an interest in tackling money laundering and the financing of terrorism.

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According to FATF, jurisdictions under increased monitoring are actively working with it to address strategic deficiencies in their regimes to counter money laundering, terrorist financing, and proliferation financing.

Recall that in February, FATF added Nigeria and South Africa to its list of jurisdictions under increased monitoring.

Efobi further warned banks that Iran, Myanmar, as well as North Korea, officially known as the Democratic People’s Republic of Korea (DPRK), remain on the FATF’s “black list” of high-risk jurisdictions.

He said, “The attention of banks and other financial institutions is drawn to the outcomes of the Financial Action Task Force (FATF) Plenary conducted from June 21-23, 2023, and 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 apex bank also reminded financial institutions that the suspension of the Russian Federation’s membership in the FATF due to its invasion of Ukraine remains in effect.

“Fis are to remain vigilant 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 addition 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.”