By, Dr. Charles Omole

The CBN Governor gave a press briefing yesterday in which he defended the policy & timing of his unpopular charge on Cash deposit policy as essential for Nigeria to meets its International obligations.

According to The Nation; Emefiele gave the strategic reason why the decision to reintroduce the charges was taken by saying: “This is a strategic timing of these actions because on Monday, September 23rd, the mutual evaluation by Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) on the country’s anti-money laundry and CFT regime will begin. Passing the mutual evaluation, positions Nigerian as a safe and credible destination for financial transaction across the world.”

Emefiele added that “GIABA will be in Nigeria to assess the rate at which Nigeria has embraced anti-money laundry and CFT regime. It is important that we display and show to them that Nigeria is indeed in conformity with their practices as enshrined in their anti-money and CFA laws. If we do not do what we are doing today, if they pass us negative, even your so-called cards that you carry abroad, you will not be able to use them.”

On one hand Emefiele is correct; but he is also wrong at the same time. Let me explain.

It is correct that if we are deemed Non-compliant by GIABA, it is not good for the country. But he is Incorrect to link the specific charges on Cash transactions measure he announced with the GIABA/FATF Assessment.

There is nothing in the assessment framework that FORCES a country to impose charge on cash transactions d way the CBN has done.
It is clearly stated on its website that GIABA conducts Mutual Evaluations of Member States in accordance with FATF standards & also in compliance with its enabling Statutes. GIABA has adopted the FATF procedure in the evaluation of Member States. The evaluated country is rated depending on the efficacy of measures put in place to detect, prevent or sanction cases of money laundering and terrorist financing.

READ MORE: https://thebelltimesng.com/2019/09/21/demystifying-cbn-response-to-cashless-policy-criticism/