By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-The Central Bank of Nigeria (CBN) Tuesday warned Banks, Discount Houses and Development Banks against Money Laundering and advised on the appointment of chief compliance officers (CCO).

This contained a circular with reference number FPR/DIR/GEN/001/022 dated July 18 2013 and signed by Nwaoha I.T, Acting Director, Financial Policy and Regulation Department, the circular reads thus:

“Available information has revealed that some banks, discount houses and development banks do not have substantive chief compliance officers and that the officers who occupy such position in these institutions are doing so in an acting capacity and for a long period of time. We, therefore, wish to state that these practices have negated the following on the appointment of chief compliance officers:

“The CBN circular dated  August 8th, 2002 which directed the affected financial institutions to appoint chief compliance officers, not below the grade of a General Manager to, among other things, enforce the provisions of the  relevant Acts and circulars on money laundering at various levels of your institutions; and

“Section 9(1) of the Money Laundering (Prohibition) Act, 2011 (as amended) which requires them to designate, at management level, chief compliance officers in their head offices and branches, who have the relevant competence, authority and independence to implement their institutions’ AML/CFT compliance programme. This requirement is reiterated by section 1.40 of the AML/CFT Regulation, 2009 (as amended), issued by the CBN.”

“Pursuant to the above, you are requested to forward the particulars of your current chief compliance officers and the letters of approval of same obtained from Banking Supervision Department, CBN, to the Acting Director, Financial Policy and Regulation Department, not later than two weeks from the date of this letter. A nil submission is required in cases of non-compliance, please.”

Consequent upon this, the CBN has directed all affected financial institutions to submit the particulars of their CCOs and the letters of approval of same obtained from the apex bank not later than two weeks from the date of the circular.