CBN Releases Requirements for Nigerians, Investors Interested in Getting a Banking Licence

• CBN has provided paperwork for Nigerians, investors interested in owning a bank or establishing any sort of financial organization
• The action is intended to assist prevent people of dubious character or background from gaining control of a financial organization
• The CBN recommendations also included laws that might disqualify people seeking to own a bank

The Central bank of Nigeria has released guidelines and expectations for Nigerians or interested persons looking to own a financial institution.

The guideline published on Friday, November 25, 22, was signed by Chibuzo a. Efobi, Director of the financial policy and regulation department.

CBN listed various requirements before licence applicants can get approval stressing that the document will help continue its fight against anti-money laundering(AML), Combating the Financing of Terrorism(CFT) and countering proliferation financing of weapons of mass destruction(CPF).

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Part of the guideline reads:

"In furtherance of efforts towards promoting compliance with Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing (AML/CFT/CPF) laws and regulations, the Central Bank of Nigeria (CBN) hereby issues this Guidelines for use by individuals and entities applying for licence to operate as banks or other financial institutions.

"This Guideline represents the minimum AML/CFT/CPF requirements for licensing of new financial institutions and should be read in conjunction with applicable AML/CFT/CPF laws, regulations and other CBN licensing requirements applicable to the institution type for which the licence is sought.

"The scope of this guideline covers both new and pending applications (including those awaiting final approval).

List of requirements to own a bank

Some of the requirements expected from CBN to own a financial institution include:

• Curriculum vitae of the beneficial owners.
• The shareholding structure of the institution for which the licence is sought.
• Where a shareholder or prospective shareholder is a legal person or legal arrangement, relevant incorporation documents detailing the current shareholding structure and directorship/trustee/fiduciary information.
• Completed beneficial ownership declaration form
• Demonstrate capability for screening customers and transactions for ML/TF/PF risks
• Demonstrate capability for monitoring, collating, and filing of suspicious transactions reports (STRs) and other regulatory returns

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Why application to own a bank can be rejected

• Inability to address the AML/CFT/CPF licensing requirements satisfactorily, especially during the capital verification exercise
• Misrepresentation of facts and false declaration
• Criminal record of a party to the application indicating conviction or any other offence that constitutes a financial crime;
• Opaque ownership structure
• Discovery that a party to the application is on the sanctions lists of the federal government of Nigeria, the world bank and others

CBN removes bank charges, sets new rules for cash withdrawals

In another development, the Central Bank of Nigeria has adjusted bank charges to accommodate deposits made by Nigerians

The action is intended to persuade Nigerians to return their old naira notes to banks within the next 60 days

The CBN has also announced the documents that will be required for Nigerians to withdraw large sums of money from the bank

Source: Legit.ng