The Nation
The Central Bank of Nigeria (CBN) has taken steps to protect the financial system from cases of money laundering through Other Financial Institutions (OFIS) such Microfinance Banks (MfBs), Finance Companies, and Discount Houses.
The apex bank has, therefore, developed guidance note on anti-money laundering/combating the financing of terrorism (AML/CFT) for other financial institutions (OFIs).
CBN Director, Financial Policy and Regulation Department, Chibuzo Efobi, said the Guidance Note would assist the sub-sector in the identification, assessment, as well as mitigation of money laundering and terrorist financing (ML/TF) risks.
He said the level of sophistication of the internal controls should be commensurate with the size, structure, risks and complexity of the financial institution.
“The internal controls address risks and compliance requirements unique to a particular line of business or department and are part of a comprehensive AML/CFT compliance programme,” he stated.
According to Efobi, the OFIs are required to develop an AML/CFT programme, which at the minimum should contain the Board and Senior management oversight, risk management, policies and procedures, monitoring and suspicious transaction report, internal control, compliance function and training.
He added that the OFIS Board of Directors would establish an AML/CFT programme in tandem with the AML/CFT legislations and regulations, okay AML/CFT policies and procedures, assign a member to handle AML/CFT issues or establish a committee, do so and report to it.
Also, the OFIS Board of Directors is expected to issue policies on ML/TF risks and formulate and communicate a code of conduct/ethics that include AML/CFT issues. Moreover, the OFIS Senior Management is responsible and accountable for the implementation of the AML/CFT programme…
