Aduragbemi Omiyale
By Aduragbemi Omiyale
Financial institutions operating in Nigeria have been warned to be very careful of transactions from the Benin Republic and should put measures in place to scrutinise them.
This warning came from the Central Bank of Nigeria (CBN) via a circular dated April 11, 2022, stressing that the West African neighbour is gradually becoming a conduit for laundering illicit funds from drug trafficking.
In the notice signed by the Director of Banking Supervision Department of the CBN, Ms Asuquo Evelyn, the apex bank said Nigerian lenders must not be used for such high-risk transactions.
The central bank, therefore, advised banks to ensure they fully implement the know-your-customer (KYC) and customer due diligence (CDD) policies on existing accounts and transactions linked to the Republic of Benin.
In the circular, the apex bank noted that it gathered from competent sources and intelligence reports that the Francophone nation was turning into a hub for the illicit drug trade in West Africa.
“We write to bring to your attention an intelligence report availed to the Central Bank of Nigeria (CBN) which indicated that the Benin Republic is increasingly becoming a drug trafficking transit and consumption hub in West Africa.
“In order to ensure that Nigerian banks are not used as conduits for laundering such illicit funds, it has become imperative to intensify the know-your-customer (KYC) and customer due diligence (CDD) measures in your bank as required by regulation.
“Consequently, you are required to implement additional measures on customers and business relationships linked to the Benin Republic. You are also required to re-classify related customers and transactions as high risk and conduct enhanced due diligence (ED) procedures accordingly,” the bank stated.
