CBN places Cameroon, Croatia, Vietnam on watch list over money laundering activities

The Central Bank of Nigeria (CBN) has requested that Deposit Money Banks and Other Financial Institutions in the country should increase monitoring of transactions with businesses and persons in and from Cameroon, Croatia, and Vietnam.

This was seen in a circular referenced: FPR/AML/PUB/BOF/001/029, which was issued, on Thursday, July 7, 2023, by CBN’s Director of Financial Policy and Regulation, Chibuzo Efobi.

According to the apex financial institution in Nigeria, banks and other financial institutions need to watch transactions with the mentioned countries because they had been recently placed on a grey list by a global money laundering and terrorist financing watchdog, Financial Action Task Force (FATF).

Any country under increased monitoring is actively working with the FATF to address strategic deficiencies in its regime to counter money laundering, terrorist financing, and proliferation financing.

CBN also disclosed that the Democratic People’s Republic of Korea, Iran, and Myanmar remain on the list of high-risk jurisdictions, which banks should closely monitor.

The Circular reads in part, “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 Central Bank of Nigeria said Russia remains suspended from the FATF, which means banks need to stay vigilant and beware of any risks from transactions with the listed countries.

“Additionally, we would like to emphasize that the suspension of the Russian Federation from the FATF remains in effect.

“FIs are to be vigilant to and be alert to possible emerging risks resulting from the circumvention of measures taken to protect the international financial system.

“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,” the CBN said.

Earlier in February 2023, Nigeria was also grey-listed by the FAFT, but a recent statement from the Nigerian Financial Intelligence stated that Nigeria’s positive push to get out of the grey list has compelled the FATF to slash the country’s 84 identified deficiencies to 15.