CBN Warns Access Bank, Zenith, and Others Against Transactions With Cameroon, Croatia, and Vietnam
- The Central Bank of Nigeria (CBN) has warned commercial banks in Nigeria against transactions with three countries
- CBN raised the alarm in a letter to the commercial banks and other institutions on Thursday, July 6, 2023
- The bank named the countries as Cameroon, Croatia, and Vietnam and warned the banks to be cautious about the countries
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Nigeria’s apex bank, the Central Bank of Nigeria (CBN), has warned commercial banks and other financial institutions against the risk of transacting businesses with Cameroon, Croatia, and Vietnam.
CBN’s Director of Financial Policy and Regulation, Chibuzo Efobi, disclosed this in an administrative letter to the commercial banks and financial institutions released on Thursday, July 6, 2023.
Source: Facebook
CBN raises alarm over money laundering activities
The letter stated that the letter is based on the outcome of the Financial Action Task Force (FATF) Plenary held on June 21, 2023.
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The letter said CBN added Cameroon, Croatia, and Vietnam to the list of Jurisdictions under “Increased Monitoring.”
The letter also stated that the Democratic Republic of Korea, Iran, and Myanmar remain on the list of jurisdictions pending on Call to Action.
CBN said that as a result, enhanced due diligence should be involved, and in severe cases, countermeasures might need to be used to safeguard the international financial systems.
The letter reads:
“We would like to emphasize that the suspension of the Russian Federation’s membership in the FATF remains in effect. Fls are to remain vigilant and alert to possible emerging risks resulting from the circumvention of measures taken to protect the international financial system.
Analyst speaks on suspected reasons for CBN's actions
Financial analyst and banker Ukachukwu Ibe told Legit.ng that the apex bank is extra cautious because many ‘bad funds’ were suspected of having entered the economic system in Nigeria and some African countries, especially during the last elections in Nigeria.
Ibe said:
“These funds came mainly from these countries highlighted by CBN, and the funds are largely perceived to be proceeds of money laundering.”
“Central banks worldwide are very cautious about the inflow of dirty money into their financial systems.”
“Nigeria received much global attention because of the hotly contested elections, and CBN thinks some dirty funds may have been introduced into the system via these countries.”
Zenith Bank raises daily withdrawal limit to N200,000 daily on ATM as banks ration cash
Legit.ng reported that one of Nigeria's tier-1 banks, Zenith Bank, adjusted its cash withdrawal limit to N200,000 daily at its ATMs nationwide.
Nigeria's apex bank, the Central Bank of Nigeria (CBN), had pegged the maximum cash withdrawal per week per person through ATMs at N20,000 daily cash withdrawal.
In a message on Wednesday, July 5, 2023, Zenith Bank said customers can perform cash withdrawals of up to N200,000 daily at Zenith Bank ATMS nationwide.
Source: Legit.ng
