OFIs: CBN releases guidance on AML/CFT regulations


By Kehinde Ibrahim, Lagos

THE Central Bank of Nigeria (CBN) has released a guidance note on Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations for Other Financial Institutions (OFIs). In a circular posted on its website, which was signed by the Director, Financial Policy and Regulation Department, Mr. Chibuzo Efobi, the CBN said it developed the guidance note in order “to assist the OFIs in iden-tifying risks associated with money laundering and terrorist financing that will help them in designing effective AML/CFT compliance programme.”

The apex bank, however, emphasised that the note “does not constitute secondary regulation or new regulatory requirement. It is intended to assist OFIs to comply with measures contained in the CBN AML/CFT Regulations, 2013 (as amended) and other relevant AML/CFT laws.”

It further stated that it does not override any legal or regulatory requirements, adding that “in the event of any discrepancy between the Guidance Note and relevant AML/CFT laws and regulations, the provisions of the latter will apply.” According to the CBN, OFIs should develop and administer AML/CFT programme that is commensurate with their size, complexity of operations and the requirements of extant AML/ CFT Laws and Regulations in the country. Specifically, the apex stated: “OFIs are required to develop an AML/CFT programme, which at the minimum should contain the following: Board and Senior management oversight; Risk Management; Policies and Procedures; Monitoring and Suspicious Transaction Report; Internal Control; Compliance Function and Training.