CBN Releases New Instructions for Banks, Others As It Steps Up Fight Against Terrorism, Hidden Accounts
- The Nigerian Central Bank has issued new guidelines to banks and other financial institutions
- The policy is aimed at combating terrorism funding as well as identifying people who run bank accounts on behalf of others
- The CBN has expressed its intention to decrease terrorist funding through the financial system, and it believes that the instructions issued would help
The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to identify, verify, and keep adequate records of the actual beneficial owners of company accounts and other special-purpose vehicles.
CBN gave this instruction in its new guideline titled Guidance on Ultimate Beneficial Owners Of Legal Persons and Legal Arrangements published.
The document which was published on its website is signed by Chibuzor Efobi, the CBN’s Director of the Financial Policy and Regulations Department.
Source: Getty Images
According to CBN, the 10 pages guideline is aimed at tackling money laundering combating the financing of terrorism, and checking abuses in the financial system.
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ThisDay reports that the apex bank also outlined that the objective of the guidance was to assist financial institutions in identifying and verifying the Beneficial Owners (BO) of legal persons and legal arrangements in line with extant anti-money laundering laws and regulations.
Snapshot of instructions to banks in the new guidelines
The apex bank noted the guideline was necessitated because of the growing use of corporate vehicles, such as companies, trusts, foundations, and other types of legal persons and legal arrangements by criminals to cover up and convert the proceeds of crime.
CBN hopes the new guideline strengthens Nigeria’s position in line with the Financial Action Task Force’s (FATF’s) which demand that countries ensure adequate, accurate, and timely information on” beneficial ownership (BO) is accessible to check corporate vehicles from being abused in the financial system.
Part of the guideline reads:
“Legal persons and legal arrangements are susceptible to abuse for money laundering and terrorist financing.
Hence, the need to identify, verify and have credible and reliable information on the legal and beneficial owners of all corporate vehicles and entities; to ensure that such information is available and easily accessible in a timely manner by competent authorities."
What is beneficial ownership
The CBN guideline defined BO as the “natural person(s) who ultimately owns or controls a customer and/or the natural person on whose behalf a transaction is being conducted.
It also includes those persons who exercise ultimate effective control over a legal person or legal arrangement.
Other details of the guideline can be found here.
CBN governor, Emeifele announces return to Nigeria
Meanwhile in another report the CBN Governor, Godwin Emefiele has announced his return to Nigeria.
The whereabouts of the CBN governor have been in the spotlight in recent days following his travails with DSS.
Emefiele has released a statement that he is back and has also promised to continue his duties.
Source: Legit.ng
