The Central Bank of Nigeria (CBN) has issued new guidelines for the Licensing of Banks and Other Financial Institutions on Anti- Money Laundering, Combating the Financing of Terrorism and Countering Proliferation of Weapons of Mass Destruction Financing (AML/CFT/ CPF).
The guidelines prescribe the minimum AML/CFT/CPF requirements for licensing of new financial institutions and should be read in conjunction with applicable AML/CFT/CPF laws and regulations to tackle money laundering and other listed illegal activities.
Documents to be submitted along with the application for Approval-in-Principle now includes completed and personally signed Beneficial Owners Declaration Form; notarized statement of net-worth for all Beneficial Owners, completed and personally signed Politically Exposed Persons (PEP) declaration form amongst other requirements.
The guidelines apply to all banks and financial institutions under the regulatory purview of the CBN and seeks amongst other objectives to ensure that proceeds of crime are not used to establish, own or control financial institutions and that promoters of financial institutions put in place appropriate and effective measures to mitigate money laundering, terrorism financing and proliferation financing risks.
The scope of the guidelines covers both new and pending license applications.
Click here to see the new guideline document.
Credit: Miriam Anozie
Senior Associate