There are rules by the Central Bank of Nigeria (CBN) for banks planning to establish correspondent banking relationship with foreign lenders.

The Nigeria's apex bank, in the Anti-Money Laundering/ Combating the Financing of Terrorism (AML/CFT) Policy and Procedure Manual released yesterday insisted that it will guard against establishing correspondent banking relationships with high risk foreign banks such as shell banks, with correspondent banks that have historically allowed their institutions to be used for Money Laundering / Financing Terrorism (ML/FT).

The regulator said that all banking products that are used to convert cash to a monetary instrument and electronic products that permit rapid value movement such as electronic transfers, forex transactions followed by payment into an account in another jurisdiction can be abused by criminals.

The CBN further said: “For trade transactions, Export Letters of Credit have been ranked as high risk because of the possibility of presentation of false shipping documents when no goods are actually shipped.

“Another factor in this ranking is the possibility of over-inflated invoicing for low value or worthless merchandise. All other trade products have been risk ranked either medium or low risk. ”The regulator said that transactions conducted through correspondent banking relationships shall be managed in accordance with a risk-based approach, and Know Your Correspondent (KYC) procedures shall be established to ascertain whether or not the correspondent bank or the counter party is itself regulated for money laundering prevention.
Also, where regulated, the correspondent shall verify the identity of its customers in accordance with Financial Action Task Force (FATF) standards, and where this is not the case, additional due diligence shall be required to ascertain and assess the correspondent’s internal policy on money laundering and KYC procedures. The CBN said that care should be taken when doing business with third parties located in geographic locations with a history of supporting terrorism, bases for drug production/distribution, suffering from civil unrest/war.

“These include jurisdictions that have been identified as high risk countries by standard setting institutions such as FATF; countries on designated sanction lists such as the United Nations Consolidated list and US Office of Foreign Asset Control (OFAC) List,” the bank said.

The CBN said it shall accept customers after due verification of customers’ identities, address and/ or place of business, after ascertaining their source of income/funds and after considering the level of risks they pose to the bank, based on the kind of business under consideration (such as bureau de change operators).

The apex bank said care will be taken to apply appropriate level of due diligence, depending on customers’ risk profiles adding that no accounts shall be opened for anonymous of fictitious customers.

“The CBN should not enter into a relationship with a prospective customer until the person/entity has been duly identified and verified. The customer acceptance process also includes ensuring that the prospective customer is not on the ‘watch-list’ which includes names of sanctioned persons as well as known fraudsters.”

SOURCE: https://www.trendingaccounting.com/2019/02/new-rules-for-banks-on-money-laundering.html

good! Atiku and co won't like this.

The CBN further said: “For trade transactions, Export Letters of Credit have been ranked as high risk because of the possibility of presentation of false shipping documents when no goods are actually shipped.

This is a very good one.
One of the way the nation will move forward.
Corrupt and evil politicians won't like this.

Lol..

Where there is ecurrency

Obasanjo, Atiku and PDP supervised the flight of DUNLOP and MICHELIN tyre companies from Nigeria. No nation of Nigeria’s size, population and the number of cars will thrive importing all tyres and other automobile parts. Never again to this dark era.

Money


Money


Money

Good development

Ok

These are standardized already internationally

And CBN[sup][/sup] want investors to come knocking at our doorsdoors

U can not implement a single fx for Naria and even implement the old rules but busy making new ones

Good

helinues:
Lol..

Where there is ecurrency

They didn’t factor how this can increase the rate of kidnapping, witch-hunting and malicious attack after their identities have been compromised. Who can you really trust with sensitive information in this world not to talk about Central Bank of ‘Nigeria’?

fernandoc:
They didn’t factor how this can increase the rate of kidnapping, witch-hunting and malicious attack after their identities have been compromised. Who can you really trust with sensitive information in this world not to talk about Central Bank of ‘Nigeria’?

Did you have a think through before typing.

StupidInyamiri:
Obasanjo, Atiku and PDP supervised the flight of DUNLOP and MICHELIN tyre companies from Nigeria. No nation of Nigeria’s size, population and the number of cars will thrive importing all tyres and other automobile parts. Never again to this dark era.

Don't just make claims. Provide evidence.

The darkest era in the history of Nigeria is during Buhari's presidency

fernandoc:
They didn’t factor how this can increase the rate of kidnapping, witch-hunting and malicious attack after their identities have been compromised. Who can you really trust with sensitive information in this world not to talk about Central Bank of ‘Nigeria’?

wow! your thoughts left me speechless. I wonder what you would do as a leader, if as a follower, you can say this.

Fresh

Caseless:
good! Atiku and co won't like this.

you don't have any idea what happens in the banks in nigeria what CBN merely did was to dust up extant AML/CFT law there have been there since it was established during OBJ's bank consolidation, there is at best paying mere lips service, it's still going to be business as usual within banking operations still more of the same poo if you applaud this trash then am not suprised at all Nigerians remain the most timid and gullible species of human kind, what ever is thrown at us we consume hook line and sinker, it's sounds to me like what Buhari would say

Gandollar will not like this!

Another policy to ensure much fewer are favoured? Good tight policies with waiver to attend the anointed ones.

Country ndi ara

story story from the politicians...Huge money still leaves this country on a daily basis so please CBN quit the crap

Jason007:





wow! your thoughts left me speechless. I wonder what you would do as a leader, if as a follower, you can say this.

You think you made an intelligent comment but your lack of comprehension and inability to read between the lines places your level of intelligence in a very low standard deviation.

Chaiii..
See how those two top dogs above me don turn am to English tutorial classes...