E-Financial
CBN Intensifies War against Money Laundering
.Central Bank of Nigeria (CBN) has developed guidance note on anti-money laundering/combating the financing of terrorism (AML/CFT) for other financial institutions (OFIs), in a bid to protect the financial system from cases of money laundering.
This is so that those in the habit of engaging in money laundering through Other Financial Institutions (OFIS) such as Microfinance Banks (MfBs), Finance Companies, and Discount Houses, may not have their ways anymore.
Chibuzo Efobi, director, CBN, Financial Policy and Regulation Department, said the Guidance Note would assist the sub-sector in the identification, assessment, as well as mitigation of money laundering and terrorist financing (ML/TF) risks.
According to him, the level of sophistication of the internal controls should be commensurate with the size, structure, risks and complexity of the financial institution.
“The internal controls address risks and compliance requirements unique to a particular line of business or department and are part of a comprehensive AML/CFT compliance programme,” he stated.
According to Efobi, the OFIs are required to develop an AML/CFT programme, which at the minimum should contain the Board and Senior management oversight, risk management, policies and procedures, monitoring and suspicious transaction report, internal control, compliance function and training.
He added that the OFIS Board of Directors would establish an AML/CFT programme in tandem with the AML/CFT legislations and regulations, okay AML/CFT policies and procedures, assign a member to handle AML/CFT issues or establish a committee, do so and report to it.
Also, the OFIS Board of Directors is expected to issue policies on ML/TF risks and formulate and communicate a code of conduct/ethics that include AML/CFT issues. Moreover, the OFIS Senior Management is responsible and accountable for the implementation of the AML/CFT programme.
They should ensure that the programme is adequate to mitigate ML/TF risks and complies with the extant AML/CFT laws, regulations, guidelines and relevant circulars.
He said the determination of criminals and criminal organisations to use other financial institutions to launder funds and finance terrorism poses threats to the financial system globally.
According to him, the threat continues to be a source of concern to the apex bank. “Over the years, there have been extensive efforts in many countries to come up with appropriate measures to combat money laundering and financing of terrorism.
“One of the core mandates of the CBN is to promote the safety and soundness of the financial system and, by extension, formulating appropriate policies and procedures designed to mitigate AML/CFT risks to promote financial system stability,” he said.
He said the Guidance Note would identify risk management procedures that would lessen the susceptibility of OFIs as a fertile ground for money laundering, terrorist and proliferation financing.
These risks may arise from customers, product and services, business practices or delivery methods and jurisdictions or geographical presence.
The CBN said in carrying out its supervision, it observed that OFIs have challenges in the implementation of effective risk-based approach to AML/CFT programme that meets the standard of regulation.
“The application of the Guidance Note is expected to assist the institutions take measures to review, monitor and mitigate the risks. OFIs could use more stringent tools to identify and assess ML/TF risks in their institutions. However, irrespective of the method adopted, the risk assessment should be updated regularly,” the CBN said
Titan Trust Bank has selected Oracle FSS for its core and digital banking technology, it is understood.
The start-up bank recently obtained its license by the Central Bank of Nigeria (CBN).
It’s understood that Temenos and Infosys also competed for the deal.
The shortlist came down to the two most widely installed international core systems in Nigeria, Infosys’ Finacle and Oracle FSS’s Flexcube.
The Nigerian banking sector has seen a great deal of upheaval over the years, with many mergers, start-ups and closures. Flexcube is a well respected name since the late 1990s (the pioneer was Access Bank, now one of the country’s top five banks) and has been a commonly selected platform since then.
The new bank is believed to be one of five to have gained regulatory approval of late (Globus Bank is another).
Local media sources say the new licences stem from the Central Bank’s desire to attract new investments into the sector and better serve the country’s 50 million+ unbanked and under-banked citizens.
Titan Bank is said to be headed by a former executive director of Heritage Bank (which is a Finacle user).
Oracle FSS did not respond to request for comment.
International Monetary Fund (IMF), has appointed Tony Elumelu, Nigerian billionaire and group chairman of Heirs Holdings, owners of United Bank of Africa, to its advisory council on entrepreneurship and growth, convened by Kristalina Georgieva, the fund managing director.
The announcement was disclosed in a statement on Friday.
According to the statement, the IMF advisory council comprises global business leaders, policymakers, and academics dedicated to identifying and addressing regulatory barriers to entrepreneurship.
The IMF said Elumelu will be instrumental in ensuring that Africa’s entrepreneurship is central in policy making.
“Elumelu, Africa’s leading advocate of entrepreneurship and whose Foundation has funded, mentored, and trained over 25,000 African entrepreneurs since 2015, champions entrepreneurship as the engine for the economic transformation of Africa,” the statement reads.
“A self-made entrepreneur, Elumelu’s embracing of entrepreneurship is fundamental to his concept of Africapitalism, his belief that Africa’s private sector can and must play a leading role in the continent’s development, making long-term investments that deliver social and economic value.
“Elumelu will be instrumental in ensuring that Africa’s entrepreneurial potential is central to global economic policy making.”
Speaking at the inaugural meeting of the advisory council on March 26, Georgieva said the appointees would share their experiences on how macroeconomic and financial policies “can provide a supportive environment for innovation, entrepreneurship, and productivity — key ingredients for a thriving private sector and strong economic growth”.
Africa’s Micro, Small, and Medium Enterprises, fintech industry, scaling remittances, and cross-border payments will be the driving forces behind the continent’s digital ballooning payments system, which is estimated to reach $1.5 trillion by 2030.
This is according to a MasterCard-commissioned study by Genesis Analytics, which states that the digital payments economy is growing faster on the continent.
This comes as the World Bank says Sub-Saharan Africa has shown significant growth in financial inclusion over the past decade, much of it driven by mobile money account adoption.
Dimitrios Dosis, president, Eastern Europe, Middle East and Africa at MasterCard, comments: “Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead.
“MasterCard remains deeply committed to driving digital transformation across the continent, working closely with entrepreneurs, merchants, banks, start-ups, telcos, and governments. By increasing our investments, expanding innovation, and fostering inclusion, we are helping build a more connected and accessible digital future.”
The payment technology company went on to say as a longstanding technology partner to Africa, its continues to strengthen its commitment to the continent’s digital growth through strategic investments, public-private partnerships, and innovation initiatives that drive financial health and economic growth.
In addition, it says trends in Africa signal a strong shift towards digital transactions, with businesses and consumers increasingly embracing contactless solutions, further accelerating economic participation and financial accessibility across the region.
“For over five decades, MasterCard has worked alongside African governments, businesses, and communities to advance financial inclusion and economic development.
“With Africa projected to host nine of the world’s 20 fastest-growing economies, we are focused on leveraging our expertise and a technology to support the continent’s continued digital transformation.
“Our investments today will help build a more resilient economy for the future,” says Mark Elliott, division president, Africa, MasterCard
By fostering collaboration with key stakeholders, MasterCard says it aims to enhance digital connectivity, expand economic opportunities, and enable millions of people and businesses to thrive in the digital economy.
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