The Central Bank of Nigeria (CBN) has expressed concern over the general low rate at which Micro Finance Banks, Primary Mortgage Banks, Bureaux De Change (BDCs), finance companies and development finance institutions in the country, which fall under its Other Financial Institutions’ Department (OFID) render Anti-Money Laundering and Combatting Financing of Terrorism (AML/CFT) returns, contrary to regulatory requirement.
This, according to a letter dated May 2, 2017 on rendition of such returns, the apex bank noted, “has hampered supervisory efforts to effectively assess and mitigate money laundering risks in the industry.”
The letter recalled the content of circulars issued on August 12, 2012 and provisions of the Money Laundering Prohibition Act 2011 (as amended) and CBN AML/CFT Regulations, 2013, requiring banks and other financial institutions to render various returns, as well as the Nigeria Financial Intelligence Unit (NFIU).
Signed by Mrs. ‘Tokunbo Martins, the bank’s Director, Other Financial Institutions Supervision Department, the letter warned that operators risk sanctions, including revocation of their operating licences for failing to render statutory returns and comply with regulatory directives.
Returns expected, the letter continued, include “Currency Transaction Reports (CTRs),” which is to be rendered to the NFIU within seven days; just as the Suspicious Transaction Reports (STRs), which is within 24 hours; while Risk Assessment Report is to be rendered monthly to the CBN.
The Foreign Currency Transaction Reports (FTRs); as well as the Politically Exposed Persons (PEPs) are to be rendered monthly to the both the CBN and NFIU within seven days and monthly respectively. Meanwhile, both agencies are to receive the Annual Employee Education and Training Programme is to be rendered to both organisations; and the Compliance with Employee Training Programme (quarterly); the quarterly returns on Three Tiered KYC (Know-Your-Customer); and yearly Testing for Adequacy of AML/CFT Compliance. The CBN is also to receive Monitoring of Employee Conduct in June and December of every year.
The electronic copies of the various reports are to be submitted via five electronic mail addresses provided in the letter, according to the OFI type- whether MFBs, PMBs, development finance institutions, finance companies or Bureau De Changes (BDCs).