Central Bank of Nigeria (CBN) has threatened to sanction any Designated Non-Financial Business and Profession (DNFBP) that refuses to update accounts by December 31, 2013 in line with the Financial Action Task Force (FATF) rules.
CBN Director, Corporate Communication, Mr Ugochukwu Okoroafor, who confirmed this development, explained that there was no reason to sanction any DNFBPs now since the deadline has not expired, adding that sanction will be applied at the end of the deadline in December this year. He stated that DNFBP need to present evidence of registration to the CBN, showing registration number with the Special Control Unit Against money Laundering (SCUML).
Mr Ugochukwu Okoroafor, who said CBN has not ordered the freezing of accounts of some religious organisations in the country over suspicion of links with terrorist groups, confirmed that the regulatory body would apply the Financial Action Task Force (FATF) rules on any DNFBP that did not update accounts by the end of this year.
For clarity, he said DNFBPs refer to dealers in jewelry, 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).
It also include 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.
He explained that prior to 2006; Nigeria was on the infamous list of the Non-Cooperating Countries and Territories (NCCTs) of FATF, a global watchdog on financial crimes, but was removed from the list on account of stringent actions taken by the government.
He added that by 2007, as a result of loopholes in nation’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.
The CBN spokesman noted that it was on that basis that the government is putting measures in place to ensure that her financial processes and procedures as well as the provisions of the Money Laundering (Prohibition) Act (MLPA) of 2011 and the Prevention of Terrorism (PTA) Act of 2011, were in conformity with FATF recommendations and international best practice.
On how CBN arrived at the deadline, Okoroafor said, “On August 2, 2012, the CBN issued a circular, requiring all such account holders classified as DNFBPs to update, within six months, their account information in their respective banks. This deadline was extended by another three months through another circular dated February 25, 2013.On June 18, 2013, following exhaustive discussions with various interest groups, the CBN conceded yet another eight month extension to December 31, 2013, for all such account holders to comply.”
He maintained that the directive on additional Know Your Customer (KYC) requirements for DNFBP is in line with international best practices against adverse developments resulting from money laundering and financing of terrorism in the world financial architecture
CBN Director, Corporate Communication, Mr Ugochukwu Okoroafor, who confirmed this development, explained that there was no reason to sanction any DNFBPs now since the deadline has not expired, adding that sanction will be applied at the end of the deadline in December this year. He stated that DNFBP need to present evidence of registration to the CBN, showing registration number with the Special Control Unit Against money Laundering (SCUML).
Mr Ugochukwu Okoroafor, who said CBN has not ordered the freezing of accounts of some religious organisations in the country over suspicion of links with terrorist groups, confirmed that the regulatory body would apply the Financial Action Task Force (FATF) rules on any DNFBP that did not update accounts by the end of this year.
For clarity, he said DNFBPs refer to dealers in jewelry, 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).
It also include 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.
He explained that prior to 2006; Nigeria was on the infamous list of the Non-Cooperating Countries and Territories (NCCTs) of FATF, a global watchdog on financial crimes, but was removed from the list on account of stringent actions taken by the government.
He added that by 2007, as a result of loopholes in nation’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.
The CBN spokesman noted that it was on that basis that the government is putting measures in place to ensure that her financial processes and procedures as well as the provisions of the Money Laundering (Prohibition) Act (MLPA) of 2011 and the Prevention of Terrorism (PTA) Act of 2011, were in conformity with FATF recommendations and international best practice.
On how CBN arrived at the deadline, Okoroafor said, “On August 2, 2012, the CBN issued a circular, requiring all such account holders classified as DNFBPs to update, within six months, their account information in their respective banks. This deadline was extended by another three months through another circular dated February 25, 2013.On June 18, 2013, following exhaustive discussions with various interest groups, the CBN conceded yet another eight month extension to December 31, 2013, for all such account holders to comply.”
He maintained that the directive on additional Know Your Customer (KYC) requirements for DNFBP is in line with international best practices against adverse developments resulting from money laundering and financing of terrorism in the world financial architecture
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