CBN warns banks against illegal money transfer

The Central Bank of Nigeria has directed the Deposit Money Banks to conduct Know Your Customers’ Business to ensure customers do not make illicit remittances through the banking industry.


The CBN gave the directive to banks and other authorised dealers in a circular signed by its acting Director, Trade and Exchange Department, Mr. W.D Gotring, which was titled, ‘Illicit international money remittances through the banking system.’


The CBN said it had observed that some DMBs were operating accounts either as companies or masking themselves as individuals for the purpose of illegally receiving money transfer flow.


The central bank therefore directed all commercial banks to identify and freeze the accounts receiving such illicit flows.


It also directed them to submit mandate and details of such accounts held in foreign and local currencies to the CBN.


According to the CBN, the development will allow for easy onward reporting to the security agencies.


The CBN has directed the DMBs to sell proceeds of the International Money Transfers to Bureaux de Change operators.