Service sector

CBN offers AML advice for the financial services industry

The Central Bank of Nigeria (CBN) has issued guidelines on combating money laundering and combating the financing of terrorism.

This initiative aims to help the subsector identify, assess and mitigate money laundering and terrorist financing (ML/TF) risks in its operations. These risks may arise from customers, products and services, business practices or delivery methods, jurisdictions or geographical presence.

The CBN stated while performing its supervisory activities that it has observed that OFIs have uneven challenges in implementing an effective risk-based approach to the AML/CFT program that addresses the standards of regulatory requirements.

Application of the guidance note should help institutions take appropriate steps to review, monitor and mitigate the identified risk. FIs could use more rigorous tools to identify and assess ML/FT risks in their businesses. However, regardless of the method adopted, the risk assessment must be updated regularly, the CBN said.

The central bank explained that the guidance note does not constitute secondary regulation or new regulatory requirements. It is intended to assist AIFs in complying with the measures contained in the CBN AML/CFT Regulations, 2013 (as amended) and other relevant AML/CFT laws.