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Monitor Political Appointees’ Accounts Regularly, CBN Tells Banks - Politics - Nairaland

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Monitor Political Appointees’ Accounts Regularly, CBN Tells Banks by dre11(m): 9:57am On Jun 24, 2023

The Central Bank of Nigeria has ordered banks and other financial institutions in the country to regularly screen accounts of Politically Exposed Persons.

It stated this in its circular to banks and other financial institutions on Friday titled, ‘Guidance notes on Politically Exposed Persons’, which was signed by the Director, Financial Policy and Regulation Department, Chibuzor Efobi.

In the circular, it stated that, ““PEP accounts should be subject to periodic reviews as may be determined by the FI in line with risk assessment.

“Frequency of the periodic reviews should be determined by the risk of the customer and documented appropriately. FIs should also review their PEP database frequently.”


It added that, “On a regular basis, transactions and account activities should be monitored and scrutinised for money laundering/terrorist financing/ proliferation financing risks.”

The CBN explained domestic PEPs to be those entrusted with prominent public positions in Nigeria, while those entrusted with prominent public positions in any other foreign jurisdiction were foreign PEPs.

It noted that in view of the corruption level in Nigeria, domestic PEPs were rated highly vulnerable to financial risks, therefore, by default, most domestic PEPs were considered high risk.

Foreign PEPs and PEPs with prominent functions in international organisations should be categorised based on the level of risk as assessed by financial institutions, it stated.

The CBN said customer due diligence should continue after establishing a relationship with the customer.

“The behaviour of the customer, transactions and accounts should be in line with the expected level of activity. Ongoing monitoring is crucial as a customer risk profile may change over time.”

The CBN stated that financial institutions, in the ordinary course of their businesses, established business relationships with PEPs, who may be vulnerable to corruption and portend reputational and financial crime risks to the FI.

PEPs, it stated, posed a high risk of money laundering, financing of terrorism and proliferation financing due to the possibility that individuals holding such positions may misuse their power and influence for personal gain or advantage to themselves, close family members and associates.

The CBN said, “Such individuals may also use their families or close associates to conceal illicit funds and assets.

“In addition, they may also seek to use their power and influence to gain representation and/or access to, or control of, legal entities for similar purposes.”


https://punchng.com/monitor-political-appointees-accounts-regularly-cbn-tells-banks/

Re: Monitor Political Appointees’ Accounts Regularly, CBN Tells Banks by donbachi(m): 10:03am On Jun 24, 2023
Toothless bulldog
Re: Monitor Political Appointees’ Accounts Regularly, CBN Tells Banks by Nobody: 10:10am On Jun 24, 2023
sad That is if the Bank are not the one moving the PEP's fund . I just hope there is a platform that allow us know all account linked to our BVN that way you can steal others people's identity or be laundering money with account in their name without there consent. The numbers of Banks in Nigeria is too much
Re: Monitor Political Appointees’ Accounts Regularly, CBN Tells Banks by taylor89(m): 10:16am On Jun 24, 2023
kiss
Re: Monitor Political Appointees’ Accounts Regularly, CBN Tells Banks by helinues: 11:28am On Jun 24, 2023
The politicians partner in crime should report themselves to who?
Re: Monitor Political Appointees’ Accounts Regularly, CBN Tells Banks by Flets: 11:29am On Jun 24, 2023
Buhari even attempted to claim not to be corrupt

Tinubu has never attempted to say he is not corrupt, everyone knows he is arguably the most corrupt Nigerian alive

Anybody expecting a fight against corruption under Tinubu is a joker
Re: Monitor Political Appointees’ Accounts Regularly, CBN Tells Banks by femisplash: 11:31am On Jun 24, 2023
Amazing news, banks themselves will be under scrutiny being the channel for the loots

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