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CBN Clamps Down on Money Laundering Conduits: Hotels, Casinos, Forex Operators, Others Affected

By on August 14, 2012

CBN HQ, FCT

The Central Bank of Nigeria has instructed banks and other financial institutions that fall under its regulatory oversight to ensure their Designated Non-financial Institutions (DNFIs) clients are well registered with the Economic and Financial Crimes Commission.

The DNFIs that banks are required to undertake additional Know Your Customer (KYC) on comprise of hotels, casinos, bureau de change, law and accounting firms.

The banks have a six-month deadline to undertake the exercise and update their records. The banks will have to ensure that such businesses are registered with Special Control Unit against Money Laundering(SCUML) of the Economic and Financial Crimes Commission (EFCC) before any further dealings after six months.

A statement released CBN spokesperson, Wilson Uwujaren, said, “The relentless campaign by the Special Control Unit against Money Laundering for compliance with anti-money laundering regulations by Designated Non-Financial Institutions has received a boost with a directive by the Central Bank of Nigeria , making registration with SCUML a key Know Your Customer requirement for opening accounts for DNFIs in financial institutions.

“The directive contained in a circular referenced FPR/CIR/GEN/VOL.1.028 dated August 2, 2012 and entitled: “Additional Know Your Customer Requirement in Respect of Designated Non-financial Businesses and Professions (DNFBPs)”, mandates all financial institutions, prior to establishing business relationships with DNFIs, to obtain evidence of registration with SCUML.

“The new requirement, which takes effect from August 2, 2012, according to the circular signed by the apex bank’s Director, Financial Policy and Regulation Department, Chris O. Chukwu, also mandated all DNFBPs who are existing financial institutions customers to update their records within six months from the date of the circular.”

It added: “This directive of the apex financial regulatory institution will enhance efforts at implementing Nigeria’s Anti-Money laundering and Combating the Financing of Terrorism (AML/CFT) regime as it will automatically translate into more registrations and supervisory work to ensure compliance with the law, since the circular has immediate and nationwide effect.

“All Designated Non-financial institutions (DNFIs) and Financial Institutions nationwide are to ensure strict compliance as non-compliance will attract appropriate sanctions.

A brief on the SCUML from the EFCC’s website reads: “The Special Control Unit against Money Laundering (SCUML) was established in 2005 as a special unit to fight Money Laundering as spelt out in the Money Laundering (Prohibition) ML(P) Act of 2004 ( Now 2011).

“Although legally domiciled in the Ministry of Trade and Investment, SCUML works closely with the EFCC operationally.

“Consequently, SCUML has the mandate to monitor, supervise and regulate the activities of all Designated Non Financial Institutions (DNFIs) in Nigeria in consonance with the Country’s Anti Money Laundering and Combating of the Financing of Terrorism (AML/CFT) regime.”

One Comment

  1. Cyprian Michael Justine

    August 14, 2012 at 5:15 pm

    This is Wonderful………