Having been instrumental to past efforts aimed at sanitising the financial services industry, Central Bank of Nigeria says it is presently facilitating a drive for the country joining the global Financial Action Task Force (FATF).
Governor of the bank, Mr Godwin Emefiele said this on Monday in Abuja at the opening of the Regional Course on “Combatting Money Laundering and other Financial Crimes.
He explained that CBN had taken steps to ensure that the banking sector is not used to launder money in or out of the country or for any other form of illegal activities.
“One of the core functions of the CBN is to promote a sound and stable financial system in Nigeria and combating money laundering to ensure that the financial system is safe and steady.
“Because of that, we have embarked on a number of initiatives.
“We have issued circulars to Security Compliance Officers at banks; we have also issued circulars on the importance of KYC (Know Your Customer) before any account is opened.
“Also, the recent BVN is all geared towards ensuring that the financial system is stable, to make sure that depositors in the banks are known depositors and not those that will use the banking system as a platform to carryout illegal activities,’’ he said.
Noting that the apex bank supported the establishment of the Economic and Financial Crimes Commission (EFCC) and the Financial Intelligent Unit, which he believed was strategic to fighting this menace, Emefiele said FATF has already scheduled a visit to Nigeria later in the year as part of its procedure prior to admitting the country.
FATF is an intergovernmental organisation founded in 1989 by the G7 to develop policies to combat money laundering.
The event was organised by the West African Institution for Financial and Economic Management (WAIFEM) and had participants from the central bank, ministry of finance and law enforcement agencies of Nigeria, Gambia, Ghana and Liberia.
Emefiele, who was represented by the Director, Financial Policy and Regulation Department, CBN, Mr Kelvin Amugo, declared the institution was working closely with banks to ensure that ill gotten-gains-of crime were not legitimised using the financial sector.
Also speaking, Director General, WAIFEM, Prof Akpan Ekpo, said financial system stability was a major prerequisite for economic growth and development while money laundering is a key threat to financial stability in any economy, especially small and fragile economies in our sub-region.
He observed that a number of predicate offences for money laundering are common in West Africa including drug trafficking, human trafficking, arms trafficking and counterfeit to name a few.
Meanwhile, the Executive Secretary, ACBF, Prof Emmanuel Nnadozie said that for the past 15 years, the foundation had supported WAIFEM with about 8 million dollars.
“The Purpose of the 1.3 million dollars grant, being offered to the institute is to enable WAIFEM consolidate and expand the scope of its activities within the next 18 months.
“The support to WAIFEM is coming at a time when economies of countries in the sub-region continue to face shocks and dislocations in policy.
“Countries in the region continue to face the perennial problem of inadequate infrastructure, debt overhang and declining commodity prices.
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