The bank explained in a statement posted on its website that in order to ensure that the provisions of the Money Laundering (Prohibition) Act (MLPA) of 2011 were enforced, all Designated Non-Financial Businesses and Professions (DNFBPs) were required to comply with the Know-Your-Customer (KYC) requirement whose deadline was recently extended to December 31, 2013.
The statement signed by the Director, Corporate Communications, CBN, Mr. Ugochukwu Okoroafor, pointed out that the only requirement for the KYC update was the presentation of evidence of registration, specifically, certificate of registration showing registration number with the Special Control Unit Against money Laundering (SCUML).
DNFBPs refer to dealers in jewellery, precious metals and stones, cars and luxury goods, audit firms, tax consultants, clearing and settlement companies, lawyers, notaries, other independent legal practitioners and chartered accountants, trust and company service providers (who provide services to third parties), hotels, casinos (including internet and ship-based casinos), supermarkets, real estate agents, non-governmental organisations (NGOs), religious and charitable organisations, or such other businesses or professions as the Federal Ministry of Trade and Investments, or appropriate regulatory authorities may, from time to time, designate.
The statement said further: “The attention of the CBN has been drawn to some reports being circulated in the media to the effect that the CBN had ordered the freezing of the accounts of some religious organisations, citing alleged suspicion of links with terrorist groups.
“We wish to state that the CBN has not ordered the closure or freezing of the bank account of any religious body or any institution whatsoever as alleged in the publications and posts. There is, therefore, no iota of truth in these allegations.
“Prior to 2006, Nigeria was on the infamous list of the Non-Cooperating Countries and Territories (NCCTs) of the Financial Action Task Force (FATF), a global watchdog on financial crimes. Nigeria was removed from this undignified list on account of stringent actions taken by the Nigerian Government.
“However, by 2007, as a result of loopholes in Nigeria’s legal and regulatory system, the country was included in the ‘grey list’ of countries that had not made appreciable progress in their Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regime by FATF.”
From the above, the CBN stressed that it was therefore incumbent on Nigerian authorities to ensure that the country’s financial processes and procedures as well as the provisions of the MLPA 2011 and the Prevention of Terrorism (PTA) Act of 2011, were in conformity with the FATF recommendations and international best practice. This it said led to the directive for KYC update by DNFBPs operating accounts in all financial institutions in Nigeria.
The deadline for the policy initiated in August, 2012 has since been extended three times, with a fresh deadline of December this year announced last Tuesday.
“It is, therefore clear that the new deadline has neither come nor is the measure targeted at any institution or person, be it religious, financial or social. The circulars are in line with global best practice and consistent with the laws of the Federal Republic of Nigeria.
“We wish to state, however, that upon the expiration of this final deadline, the CBN shall ensure that FATF rules are complied with. We, therefore, urge all affected DNFBPs to comply as soon as possible,” the central bank warned.
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