CBN To Banks: Beware Of Transactions Related To Benin Republic

The Central Bank of Nigeria has urged Nigerian banks to monitor transactions involving the Benin Republic after intelligence revealed the country is more often used for drug distribution and consumption in West Africa.

This was disclose in a circular sent to Nigerian banks titled “NEED TO IMPLEMENT ENHANCED MEASURES FOR CUSTOMER ON-BOARDING AND DUE DILIGENCE ON EXISTING ACCOUNTS AND TRANSACTIONS RELATED TO BENIN REPUBLIC”, signed by Asuquo Evelyn E. for the Director Of Banking Supervision.

CBN also asked Nigerian banks to strengthen its Know Your Customer (KYC) and Customer Due Diligence (CDD) policies, as mandated by regulation.

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The apex bank called for additional measures such as re-classify related customers and conducting Enhanced Due Diligence.

The circular read, “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.”

The apex bank suggested a shield for Nigeria banks to avoid involvement in illicit transactions.

“In order to ensure that Nigerian banks are not used as conduit 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.”

Furthermore, it added “Consequently, you are required to implement additional measures on customers and business relationships linked to Benin Republic.

” You are also required to re-classify related customers and transactions as high risk and conduct Enhanced Due Diligence (ED) procedures accordingly.”