CBN Issues Guideline On How To Avoid Getting Duped By Illegal Financial Operators

CBN Warns GTBank, Stanbic IBTC, Others Over Dealings With 6 Countries

11 months ago
1 min read

The Central Bank of Nigeria (CBN) has warned Deposit Money Banks (DMBs) and other financial institutions in Nigeria to take extra caution when transacting with businesses or individuals residing in Cameroon, Croatia, Russia three others.

In a circular reference: FPR/AML/PUB/BOF/001/029, released on Thursday, but dated 6 July 2023, North Korea, Iran and Vietnam were also listed as countries that pose a risk to the international financial system.

In Nigeria, there are over 10 commercial banks, such as Guaranty Trust Bank (GT Bank), Stanbic IBTC Bank, First City Monument Bank (FCMB), Zenith Bank, Access Bank, United Bank for Africa, and many more. 

The financial institutions were told the countries are high-risk jurisdictions, so there’s a need to enhance due diligence, and in severe cases, countermeasures should be applied to safeguard the international financial system.

The instruction was from the outcome of the Financial Action Task Force (FATE) plenary held on 21-23 June 2023.

“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 remain 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. 

“Additionally, we would like to emphasise 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,” CBN wrote in the circular to banks and other financial institutions.


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