
CBN Introduces New Anti-Money Laundering Rules for Microfinance Banks

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The Central Bank of Nigeria has issued a guidance note that is aimed to prevent money laundering through Other Financial Institutions (OFIs) such as Microfinance Banks (MfBs), and Finance Companies.
According to the CBN Financial Policy and Regulation Director Chibuzo Efobi, the Guidance Note named Anti-money Laundering/Combating the Financing of Terrorism (AML/CFT) for OFIs will enable the sub-sector to identify, assess, and minimise the risks of money laundering and terrorist financing (ML/TF).
He stressed that the sophistication level of internal controls should be commensurate with the size, structure, risks, and complexity of the financial institution.
“The internal controls address risks and compliance requirements unique to a particular line of business or department and are part of a comprehensive AML/CFT compliance programme,” Efobi explained.
He said:
Suggested read: Nigeria’s Senate Passes Bill to Tighten Money Laundering Rules