Banwo & Ighodalo Logo

Banking Updates: Recent Landmark Regulations, Legislation & Case Law Affecting The Banking & Finance Sectors May 2017 Edition

This month’s newsletter contains a review of:

  • The Central Bank Of Nigeria’s (CBN’s) letter to Other Financial Institutions (OFIs) regarding the rendition of returns in connection with anti-money laundering and combatting the financing of terrorism (AML/CFT); and

  • the CBN circular clarifying items valid for foreign exchange (FX) in the Nigerian FX market; and

Importantly, this edition also highlights key provisions of the Secured Transactions in Movable Assets Act, 2017 (otherwise known as the Collateral Registry Act[1]); and the Credit Reporting Act, 2017.

LETTER TO ALL OTHER FINANCIAL INSTITUTIONS (OFIs) ON RENDITION OF RETURNS ON ANTI-MONEY LAUNDERING AND COMBATTING FINANCING OF TERRORISM (AML/CFT)

Following the CBN’s observation of the general low level of rendition of AML/CFT returns by OFIs, which has hampered efforts to effectively assess and mitigate money laundering risks in the industry, the CBN pursuant to a letter dated May 2, 2017 (the “Letter”) and referenced (REF: OFISD/DIR/CIR/GEN/17/128) reiterated the relevant regulatory requirements in this regard.

The Letter refers to a previous CBN circular dated August 12, 2012 and referenced (REF: FPR/DIR/CON/BOF/01/036) which required banks and OFIs to render AML/CFT returns in prescribed formats and at appropriate periods in line with extant AML/CFT laws and regulations. In particular, relevant provisions of the Money Laundering Prohibition Act 2011 (as amended) and the CBN AML/CFT Regulations 2013, require banks and OFIs to render various returns to the CBN and Nigeria Financial Intelligence Unit (NFIU).

[1] While this is not the short title of the Act, the Secured Transactions in Movable Assets Act, 2017 is popularly also known as the Collateral Registry Act.

Download to read full article