In a recent development, the Central Bank of Nigeria (CBN) has issued a directive to Nigerian banks, urging them to exercise vigilance when conducting transactions with businesses and individuals from certain nations. The warning, issued on July 6, specifically highlights the Russian Federation, the Democratic People’s Republic of Korea, Iran, and Cameroon as areas of concern.
The CBN’s cautionary statement comes as these countries have been identified as high-risk jurisdictions by the Financial Action Task Force (FATF), a prominent global authority combatting money laundering and terrorist financing. By placing them on the list, FATF aims to establish international standards to prevent illicit activities and mitigate their detrimental impact on society.
Besides the aforementioned countries, other nations such as Croatia, Vietnam, and Myanmar also feature on the list, reflecting the decisions reached during a recent FATF plenary session.
The circular issued by Mr. Chibuzo Efobi, the Director of Financial Policy and Regulation, emphasizes the need for banks and financial institutions to exercise enhanced due diligence in their dealings with these jurisdictions. In certain instances, counter-measures may even need to be implemented to safeguard the integrity of the international financial system. It should be noted that the suspension of the Russian Federation from FATF continues to be in effect.
