The Central Bank of Nigeria (CBN) has tasked other financial institutions (OFIs) on proper and prompt rendition of returns for it to effectively assess and mitigate money laundering-risks in the industry.
In a circular signed by Tokunbo Martins, its director of other financial institutions supervision department, and addressed to all OFIs, the CBN noted the pervading low level of rendition by the institutions despite a 2012 circular on the subject.
The 2012 circular specifically required all banks and OFIs to render various anti-money laundering and combatting financing of terrorists (AML/CFT) returns in prescribed formats and at appropriate period in line with extant AML/CFT laws and regulations, which the OFIs have not strictly complied.
The CBN has therefore reiterated and ordered all OFIs to render all the requisite returns to the CBN and the Nigerian Financial Intelligence Unit (NFIU) or risk appropriate sanctions, including revocation of licences.
The returns, which should be rendered electronically, include the following:
- Currency transaction reports (CTRs) to NFIU within seven days;
- Suspicious transaction reports (STRs) to NFIU within 24 hours;
- Foreign currency transactions reports (FTRs) to CBN and NFIU within seven days;
- Risk assessment reports (RARs) to CBN monthly;
- Politically exposed persons reports (PEPs) to CBN and NFIU monthly;
- Annual employee education and training programme reports to CBN and NFIU annually;
- Compliance with employee training programme reports to CBN and NFIU quarterly;
- Monitoring of employee conduct reports to CBN semi-annually;
- Three-tiered know your customer (KYC) reports to CBN and NFIU quarterly; and
- Testing for adequacy of AML/CFT compliance reports to CBN.
Strict compliance on the above reports is expected to help the CBN properly mitigate risks associated with money laundering and terrorists financing.