CBN steps up fight against terrorism, hidden bank accounts, as Emefiele, DSS saga rages
by Ebor Cletus Ralph Jr
The genuine beneficial owners of company accounts and other special-purpose vehicles must be identified, verified, and kept in adequate records, according to instructions from the Central Bank of Nigeria (CBN) to banks and other financial institutions.
This was mentioned by CBN in its brand-new policy, which was released on Monday and is titled Guidance on ultimate beneficial owners of Legal Persons and Legal Arrangements.
Chibuzor Efobi, the Director of the CBN’s Financial Policy and Regulations Department, signed a directive that addressed money laundering and terrorism financing.
The 10 pages of guidelines, according to the apex bank, were necessary because criminals were increasingly using corporate vehicles, such as businesses, trusts, foundations, and other sorts of legal persons and legal arrangements, to conceal and divert the proceeds of their crimes.
CBN hopes the new guideline strengthens Nigeria’s position in line with the Financial Action Task Force’s (FATF’s) demand that countries “ensure that adequate, accurate and timely information on” beneficial ownership is accessible to check corporate vehicles from being abused in the financial system.
“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,” CBN stated.
The apex bank outlined that the guideline, which draws from global standards, was issued to financial institutions (FIs) under its purview as defined under the Central Bank of Nigeria (Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing of Weapons of Mass Destruction in Financial Institutions) Regulations, 2022, (CBN AML/CFT/CPF Regulations).
CBN know your customer guideline comes on the heels of controversies between the Department of State Services (DSS) and the apex bank’s Governor, Godwin Emefiele, on sundry allegations of national security issues.
