In order to prevent being used as a conduit for money laundering and illegal drug sales, the Central Bank of Nigeria (CBN) has issued warnings to banks regarding transactions with clients and companies associated with the Benin Republic.
In a circular to all banks, CBN’s Director of Banking and Supervision Department, Mrs. Asuquo Evelyn, issued this warning. She also mentioned that the apex bank has received intelligence inputs from reliable sources indicating that the Benin Republic is becoming into a hub for the illegal drug trade in West Africa.
The circular read: “We are writing to alert you to an intelligence report that was provided to the Central Bank of Nigeria (CBN) that showed the Benin Republic is increasingly turning into a hub for the transit and consumption of drugs in West Africa.”
As mandated by law, it is therefore essential to strengthen your bank’s customer due diligence (CDD) and now-your-customer (KYC) procedures to make sure that Nigerian banks are not used as conduits for the laundering of such illegal funds.
As a result, you must take further action against clients and commercial partnerships associated with the Benin Republic. You must additionally reclassify connected transactions and clients as high risk and carry out enhanced due diligence (ED) procedures in accordance with that classification.
