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CBN warns banks against illegal money transfer

The Central Bank of Nigeria (CBN) has warned that any bank engaging in receiving illegal money transfer into the country should desist from it.

In a circular signed by the Acting Director, Trade & Exchange Department, CBN, W.D. Gotring, and dated August 25, 2016, CBN said that Deposit Money Banks (DBMs) are operating accounts for the purpose of illegally receiving money transfer flows into those accounting for onward disbarments to recipients.

According to the circular, “Further to the guidelines for the operations of International Money Transfer Service (IMTS) in Nigeria reference TED/FEM/FPC/GEN/01/016 of September 26, 2014, we have observed that some Deposit Money Banks (DBMs) are operating accounts either as companies or companies masking themselves as individuals for the purpose of illegally receiving money transfer flows into those accounting for onward disbarments to recipients in Nigeria.”

Gotring noted that CBN has reiterated that DMBs should have the absolute responsibility to conduct Know Your Customers’ Business (KYCB) checks on all customers to ensure that they do not transfer in illegal/illicit flows.

The circular further said that DMBs are thereby directed to identify and freeze accounts receiving illicit flows and submit the mandate and account details of these accounts held in Naira or foreign currency to the CBN for onward reporting to the security agencies.

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