The Central Bank of Nigeria has issued fresh directives to banks to comply with the amended anti-money laundering/combating the financing of terrorism regulation, 2009 so as to align with money laundering Act, 2011 and terrorism Act, 2011.

A circular by the CBN on Friday listed the sections of the AML /CFT that were amended as Section 1.15.2, Section 1.18.3 and Section 1.18.1.2.

It said, “Financial institutions are required to investigate suspicious transactions and report their findings to the Nigerian Financial Intelligence Unit in the Economic and Financial Crimes Commission within seven days of the transaction, in compliance with section 6 (2) (c) of MLPA, 2011.

“Financial institutions are required to report in writing any single transaction, lodgment or transfer of funds in excess of N5,000,000 and N10,000,000 or their equivalent made by an individual and body corporate respectively to the NFIU in accordance with section 10 (1) of the MLPA, 2011.”

It added that in compliance with section 2(1) of the MLPA, 2011 financial institutions are also required to render reports on transfers to or from a foreign country of funds or securities by a person or body corporate, including a money service business of a sum exceeding $10,000 or its equivalent to CBN, Securities and Exchange Commission and EFCC in writing within seven days from the date of the transaction.

It added, “Furthermore, in compliance with section 14 of the Terrorism (Prevention) Act, 2011, financial institutions are required to, within a period of not more than 72 hours, forward the following reports of suspicious transactions relating to the NFIU- fund derived from illegal or legal sources but are intended to be used for any act of terrorism ; proceeds of a crime related to terrorism financing ; proceeds belonging to a person, entity or organisation as terrorist.”

It noted that financial institutions are not statutorily liable for violation of confidentiality rules for every lawful action taken in furtherance of their obligations under the CBN AML/CFT Regulation, 2009, as amended.

The circular also said that the details of a report sent by any institution would not be disclosed by the institution or any of its officers to any other person.

Source: Punch ( written by Ademola Alawiye)