Money Laundering: CBN Places Transactions From Cameroon, Croatia, Vietnam On Watchlist

The Central Bank of Nigeria (CBN) has warned Deposit Money Banks (DMBs) and Other Financial Institutions (OFIs) in Nigeria to be wary of business transactions with persons in Cameroon, Croatia, and Vietnam.

This decision was arrived at based on the Financial Action Task Force (FATF) meeting conducted in June 2023, which listed the three countries’ banks account as unsafe, high-risk, and must be intensely monitored.

The FATF is a global anti-money laundry watchdog, which in February this year included Nigeria and South Africa on its grey list of countries that are subject to enhanced monitoring.

Recall that in August 2019, the CBN warned banks in the country against doing business with countries like North Korea and Iran that have been placed under economic sanctions by the United States.

The warning was issued in a circular referenced: FPR/AML/PUB/BOF/001/029, on Thursday signed by the Director, of Financial Policy and Regulation, Chibuzo Efobi.

According to the circular, “The attention of banks and other Financial Institutions is drawn to the outcomes of Financial Action Task Force Plenary conducted from June 21-23, 3023 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 remains 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 noted that the existing suspension of the Russian Federation’s membership in the FATF remains effective while urging the Fls to be vigilant and alert to possible emerging risks.

“Additionally, we would like to emphasize that the suspension of the Russian Federation’s membership in the FAT remains in effect, and In light of these developments, FIs are directed to note all additions 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,” it added.