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The Central Bank of Nigeria, CBN has placed Cameroon, Croatia and Vietnam on watch list over the high risk of money laundering.
CBN task Deposit Money Bank and other financial; institutions to increase monitoring of business and personal financial transactions in the above-named country.
This was contained in a circular to banks referenced FPR/AML/PUB/BOF/001/029 signed by the Director, of Financial Policy and Regulation, Mr Chibuzo Efobi on Thursday.
Efobi in the circular explained that these countries had been placed on the grey list by the Financial Action Task Force.
As an international body, Financial Action Task Force combats proliferation financing, terrorism and money laundering among others.
FAFTF collaborates with countries considered at high risk of money laundering and terrorist financing to combat them.
Also, CBN named the Democratic People's Republic of Korea, Iran and Myanmar as countries banks need to monitor closely.
The Circular partly reads, “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.”
Banks were further notified that Russia remains suspended from FATF, adding that financial institutions need to stay clear from them.
“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,” the CBN said.
Nigeria, which was in February this year in FAFT grey-list got their identified deficiencies dropped from 84 to 15 after a recent statement by the Nigerian Financial Intelligence.
