ABUJA, Nigeria – The Central Bank of Nigeria, CBN, has issued a warning to commercial banks and other financial institutions about the risks of business transactions with Cameroon, Croatia, and Vietnam.
This warning comes in light of the addition of these countries to a watchlist of jurisdictions under “Increased Monitoring” by the Financial Action Task Force, FATF.
Chibuzo Efobi, Director of Financial Policy and Regulation at the CBN, made the announcement on Friday, July 7, 2023, in a letter titled “FATF Public Statement – Outcomes of FATF Plenary, 21-23 June 2023”. The letter was sent to banks and other financial institutions and released on Thursday.
The FATF Plenary, held from June 21-23, 2023, resulted in the addition of Cameroon, Croatia, and Vietnam to the list of monitored jurisdictions.
Efobi’s letter also highlighted that the Democratic People’s Republic of Korea, Iran, and Myanmar remain on the list of high-risk jurisdictions subject to a “Call for Action”.
Financial institutions are thus advised to apply enhanced due diligence and, in severe cases, implement countermeasures to protect the international financial system.
Furthermore, the letter emphasized the continued suspension of the Russian Federation’s membership in the FATF. Financial institutions are advised to remain vigilant to possible emerging risks that may arise from attempts to circumvent measures aimed at safeguarding the international financial system.
“In light of these developments, financial institutions are directed to note all additions to jurisdictions under ‘Increased Monitoring’ as well as high-risk jurisdictions subject to a ‘Call for Action’ and take necessary measures to effectively mitigate these risks,” Efobi concluded in the letter.
