The Central Bank of Nigeria (CBN), said it would revoke the operating licences of micro finance banks, and other financial institutions (OFIs), due to non-compliance with anti-money laundering and combating terrorism financing, AML/CFT, regulations.
Mrs, Tokunbo Martins, director, Other Financial Institutions Supervision Department, CBN, who stated this in a letter to OFIs, said that “The Central Bank of Nigeria has observed with concern the general low level of rendition of AML/CFT returns by OFIs, contrary to regulatory requirement. This has hampered supervisory efforts to effectively assess and mitigate money laundering risks in the industry.
“For the avoidance of doubt, it must be reiterated that the relevant provisions of the Money Laundering Prohibition Act 2011 (as amended) and CBN AML/CFT Regulations, 2013, require banks and other financial institutions, OFIs, to render various returns to the CBN and Nigeria Financial Intelligence Unit, NFIU.
“These returns include: Currency Transaction Reports, CTR; Suspicious Transactions Report, STRs; Foreign currency transactions reports, FIRS; Risk Assessment Report, Politically Exposed Persons,PEPs; Annual Employee Education and Training programme, Compliance with Employee Training Program, Monitoring of Employee conduct, three Tiered KYC and Testing for the Adequacy of AML/CFT Compliance.
“Please note that failure to render statutory returns and comply with regulatory directives will attract appropriate sanctions, including the revocation of operating licence.”