Extraordinary nr Federal Republic of N me Official Gazette geria . No. 68 Lagos - 3rd September, 2013 Vol. 100 Government Notice No. 161 “The following is published as Supplement to this Gamerte Sie, Sheri Tile Page 16 Central Bank of Nigeria (Anti-money Laundering and Combating the Financing of Terrorism in Banks and Other Financial Institutions in Nigeria) Regulations, 2013, == B227-B307 ‘and Published by FGP 98/920136.200 (OL. 71) Annual Subser | January, 2013 ie Local : 825,500.09 Overseas : H37,500.00 [Surface Mail]$46,500 00 [Sezend Clas Aix Maill Present issue 42.50.00 per copy. Subserlbers whe wish obtain Giccte after ist wary should apply tothe Federal Government Printsr, afi Lagos for amended SubscriptionsB27 CENTRALBANK OF NIGERIA (ANTI-MONEY LAUNDERINGAND COMBATING THE FINANCING OF TERRORISM IN BANKSAND OTHER FINANCIADINSTITUTIONS IN NIGERIA) REGULATIONS, 2013 Amnancrstasr oF Risctt.amons Regulation Pruy IOnwenes, Score AND ARPLICATONS 1. Objective 2. Seope 3. Application Parr IAntieMeney Launperine ap Compstinc tiie FINANGNG oF Tranouisht Dar crivrs 4, AMLICFT Institutional Policy Framework 5. Risk Assessment 6. Risk Mitigation 7. Designation and Duties of AML/CFT Compliance Officer & Co-operation with Competent Authorities. Paki I1I—Orrenens, Measuis avo Saverions 9. Scope of Offences 10, Tetvorism Financing Offences 11. Targeted Financial Sanctions Related to Terrorism Financing and Proliferation 12. Limitation of Secrecy and Confidentiality Laws Parr IV—Cuistontie Due Distance, Hianet Riss CUSTOMERS ‘ano ACHIVITES OF PoutTicaLty Exvosen Prisoxs 13, Customer Due Diligence (*CDD") Measures 14. Identification and Verification of Customers 15. Verification of Benefictal Ownership 16 Application of Enhanced Due Diligence to Higher Risk Customers sand Activities 17, Attention to High Risk CountriesBIR 18, 19, 20. 2 22, 23. 24 28 26, 20. 28, 29. 30. 31 22 4s 46 Politically Exposed Person (PEP) ro New Technologies and Non face-to-face Transactions: Money or Value Transfer (MVT) Services jordér and Correspondent Banking Foreign Branches and Subsidiories Wire Transfers ‘Simplified Due Diligence Applicable to Lower Risk Customers, Transactions or Products Timing of Verification Existing Customers Failure te Complete COD Reliance on intermediacies and Third Parties on CDD Fut Pare V—Marsrenaner or Reconps Maintenance of Records on Transactions Attention on Complex and Unusual Large Transactions Suspicious Transeetion Monitoring Procedure for the Monitoring anid Reporting of Suspicious Trarsect Part VI Monrroneve, Ivreanas, Cowmnois, Prosiainions, AND SANCTIONS Iniernal Controls, Compliance and Audit Sanctions and Penalties for Non-Compliance Prohibition of Numbered or Anonymous Accounts. Accounts in Fictitious Namesand Shell Banks Other Forms of Reporting AMLICFT Employee-Education and Trai Monitoring of Employee Conduct Protection of Staff wine Report Violations Additional Areas of AML/CET Risks Additional Procedures and Mitigants. Testing for the Adequacy of the AMLICFT Compliance Formal Board Approval of the AMLICET Compliance (Culture of Compliance Parr VII—GLinance ow Know Your Custouer (KC) ‘Three Tiered KYE Requiréments. Duty to Obtain Identification Evidence71 B 229 Nature and Level ofthe Business Application of Commercial Judgment Identification Factors to Consider in Identification Time for Verification of identity Verification of Wdeniity Exceptions ‘Additional Verification Requirements Ieeatification of Dirwotors and other Si Joint Account Holders Verification of Identity for High Risk Business Duty to Keep Watch of Significant Changes in Nature of Business Verification of Identity of Person Providing Punds for Trust ws Schemes and Investments in Third Parties’ Names Personal Pension Seheies Timing of Identification Requirements Consequence of Failure o Provide Satisfactory Identification Evidence Identification Procecures ‘Now Business for Existing Customers Ceatiication of Ldenifcation Documents Recording identification Evidence Concession in Respect of Payment Made hy Post “Tenmn Deposit Account ("TDA’) Investment Funds Paar VII—Groreat hsoetnton Establishing Identity Private individuals — General Information Prive Individuols Resident in Nigeria Documenting Evidence of Identity Physical Checks on Private Individuals Resident in Nigetia Electronic Checks Pager IXFisavcint Excision FoR TH SoeiAH} Of Finanenuin’ Dsabvanracinn APrticants “Finamedal Exclusion” for the Socially or Financially Disadvantaged Applicants Resident in NigeriaB 230 TB. 79. 80. al. 82 Ree 56. 7 88. 89. 90, ou 92, 93, 94, 95, Private Individuals not Resident in Nigeria Non face: to-face Identification Refugees or Avylum Seekers Students and Minors (Quasi Corporate Customers Past X—Thst, Pouiey, Recraey xb PayMenr oF Pins ‘Trust, Nominees and Fidueiaries Offshore Trusts ‘Conventionai Family and Absolute Nigetian Trusts Receipt und Payment of Funds Identification of new Trustees Life Policies Placed in Trust Powers of Attorney and Third Party Mandates Paer 2X1—Exsexrroestur, Clint Accounts, U2 AN} CORPORATE ORGANIZATIONS sneonnonrin Exocutorship Accounts *Clivay Accounts” Opened By Professional Intermediaries, Un-incorporated Business or Partnership Limited Lisbility Partnership Pure Corporate Customers The Identity of a Comporate Company Non fave-to-fuce Business Public Registered Companies Privaie Companies Higher Risk Business Apaticant Higher Risk Business Relating to Private Companies Foreign Financial Institutions Bureau DeChange Desighated Non-Financial Businesses and Professions (DNFBPs) Occupational Pension Schemes Registered Charity Organizations Religious Organizations (ROs) Taree - ‘Tiers of Government and Parsstatals Foreign Corsulateslo9. ho. ut 2 uns. na. us, 16. 17. 18 9. 120. Wake 122, 123, B231 Intermediaries ar other Third Parties to Verify Identity or to Introduce Business Pre X1I—Inmonucrows, ArrLicastons ant Forman Inte eonanics Iniroductions from Authorized Financial Intermediaries Written Applications ‘on- Written Application Foreign Intexmediasies Corporate Group Introduetions Business Conducted by Agents Syndicated Lending Correspondent Relationship Acquisition of One Financial Institution and Business by Another Vulnerability of Receiving Bankers and Agents Categories of Persons to be Identified Applications Received through Brokers Applications Receive from Foteign Brokers Multiple Farsily Applications Pag XUI—LINKED TRANSACTIONS, FORGION ACCOLNES AND Iyvesrent Linked Transactions Foreign Domiciliary Account (FDA) Safe Custody and Safety Deposit Boxes Customer's Identity Not Property Obusined Exemption from Identification Procedures Ouc-eff Cash Transaction, Remittances and Wire Transfers Re-investment of Income Amendment or Revocation of these Regulations. Intexpretatic Ciation SCHEDULESot od. . ee et I A st . wi ‘tot sen et tm Tm eet ented i H | | « 8 ” - | aSe. No, 16 of 2013 CENTRALBANK OF NIGERIA (ANTI MONEY LAUNDERINGAND COMBATING THE FINANCING OF TERRORISM IN BANKS AND OTHER, FINANCIAL INSTITUTIONS INNIGERIA) REGULATIONS, 2013, In exercise wf the powrers conferred upon me hy the provisions of section S1(1) of the Banks and Other Financial Institutions Act, 2004 and all other powers enabling me im that behalf, I, Sanuse Lasnoo Sans, Governor of the Central Baak of Nigeria, make Regulations— [29th Angust, 2013 ] Pans I—Onsicnives, Score AND APHICATONS 1. The objectives of these Regulations are to— (a) provide Anti-Money Laundering and Combating the Financing of ‘Tesrorism (“AMLiCFT") compliance guidelines for financial institutions under the reguletory purview of the Cemiral Bank of Nigeria (*CBN")as required by relevant ptovisions of the Money Laundering (Prohibition) Act, 2011 (as amended), the Terrorism Prevention Act, 2011 (@samended) and other relevant Inws and Regulations ; (0) enable the CBN 10 diligently enforce AMLICFT measures and ensure effective compliance by financial institutions ; and (e) provide guidance on Know Your Customer (°K YC”) measures to assist financial institutions in the implementation of these Regulations. 2.—(1) These Regulations cover the relevant provisions of the Money Laundering (Prohibition) Act, 201 1 (as amended). the Terrorism Prevention Act, 2011 (as amended) and sny other relevant laws or Regulations. (2) These Regulations cover — (0) the key areas of Anti-Money Laundering and Combating the Financing of Terrorism (AMLICET} Policy ; (8) development of Compliance Unit and function ; (c) Compliance Officer designation and daties : (d) the requirement to co-operate with the competent or supervisory authorities : (6) conduct of Customer Due Diligence ; (/)morivoring ane filing of suspicTous iransections o the Nigerian Financial Intelligence Unit (*NFIU) and other reporting requirements; (g) reposting tequitements ; (A) record keeping : and (J AMLICET employes training, 3. These Regulations shall apply’to banks and other financial institutions in Nigeria within the regulatory purview of the Central 3ank of Nigeria, B 233 Cominenie: ment Objective Scope ApplicationB34 Pau LIAN Mowe Laintnine anns Cott NG rn: FINANCING fF THRRORISH Dawucretsy ANLICET 4-{1) A financial institution shall adopt policies stating its commitment io fisitutions! —egmply with Anti-Money Leundering (‘AML") and Combating Financing of Policy Harroriem (CPT? obligations under subsisting laws, ;egulations and regulatory Framemeshs — gipeerives and to-actively prevent any transection that otherw se faelitates eriminal activities, money laundering or terrorism. (2) A Financial institution shall formulate and implement inie-nal controls and other procedures to deter criminals from using its facilities for money laundering and terrorist financing. {G) Financial Institutions shall adopt arish-besed approweh in the idéntifisetion and maragement of theit AMLICF risks in line with the requirements of these Regulations (4) Financial Institusions shall comply’ prompzly with requests made pursuant tocurrent AML/CFT legislations and provide information to the Central Bank of Nigeria (*CBN"), Nigeria Financial Intelligence Unit (°NFIU") and other competent authorities. 45) Financial Institutions shall not in any way inhibit the implementation of the provisions oF these Regelations and shall co-operate with the regulators andl law enforcement agencies in the implementation of a robust AMLICFT regime in Nigeria (6) Financial institutions shall render statutory reports to appropriate avihocities as cequired by law and shall guard against any act that will cause & customer or elient ta avoid compliance with AMLICFT Legisiations. (9) Financial istiuations shall identify, review and reeotd other areas of potential money laundering and tertorist Financing risks not covered by these Regulations and report same lo the appropriate authorities. (8) Financial institutions shall refleet AMLICFT policies and procedures in their strategie policies. (0) Financial insttotions shall conduct on-going Due Diligence and where aprtopriate, enhanced Due Diligence onall busines relationships and shall abtzin jnfommation on the purpose and intended nature of the business relationship of their potential customers (10) Financial institutions shall ensure that their employees, agents and ‘cxhers doing business with them, clearly understand the AMLICFT programme, Risk 5, A financial institution shall— Seen {a} take appropriate steps to identify, assess and undersiand ts Money Laundering (ML!) and the Finaneing of Tersorism ('FT") risks for customess, countries or geographic arees of fis operations, products, services and delivery channels(6) document its risk assessments profile ; [c) considerall relevant risk factors before determining the overall level of risk and the appropriate Level and type of mitigation to be applied; (c) keep the assessments in this regulaticin up to date sand (c) have the appropriate mechanisms to provide cisk asseiaments reports to regulatory, supervisary and competent authorities, and Self-Regulatory Organizations (*SROs') 6, A financial institution shall — (a) have policies, controls and procedures whieh ane approved hy its beard ‘of directors to enable it manaye und mitigate the risks that have been identisied (sither by the eourtry or by the Finaneial institution) (4) monitor the imptemeatation of the controls inthis regulation and enhance thom, whore necessary ; and (0) take enhanced measures co man risks ure identified ane! mitigate the risks where higher 7-11) A financial institution shall designate its A ML/CFT Chief Compliance Officer with the relevant competence, authority and independence to implement the institution's AML/CFT compliance programme. (2) The AMLICET Complistice Officer shall be appointed at management {evel and shall report directly to the Board on all matters under these Regulations. (3) The duties of the AMLICFT Compliance Oiieer referred to. in sub- regulation (1) of this regulation shall inelude— a) developing an AML/CFT Compliance Pr (1) receiving and vetting suspicious transition reports Hom staf; (e) filing Suspicious Transtetion Reports (ST RS") with the NFIU (a) filingother regulacory retumns with the CBN and other relevant regulatory and supervisory authorities ; il” reports tothe CBN ancl NFIU, where ne (rendering * compliance : (f ensuring that the financial institution's compliance programme is implemented; (g) co-ordinating the tsining of stat in AMLICFT awareness, detection methods and ceporting requisements : and (0) serving both as a liaison officer between his institution. the CBN and NFIU and a pointof-contact forall employees cn issues relating to money laundering und terrorist financing. ary toensure B235 Designation and Dutics of aML! cer Conn onzeB 236 co- operation wath Compatent Avice. Scape or Offences 1) financial institution shall give an undertaking thet itshall comply prompily with all the recuests made pursuant to the provisions of relevant AML! CET laws and Regulations and provide al! requested information to the CBN, NFIU and other competert authorities. (2) A finencial institution's procedures for responding to authorized requests for information on ML and FT shall meet the following — (1 searching immediately the financial institution's records to determine whether it maintains or has maintained any account for, or has engaged ix any travsection with any individual, enfty or organization named in the request (b) reporting promptly to the requesting authority the outcome of the seareh ; and c) protecting the security and confidentiality of such requests Paar I]—Oevences, Measuies AND SANCTIONS 9.—(1) A financial instiuuion shall identify and file suspicious transection reports 10 the NFIU, where funds, assets or property are suspected (0 have teen derived from any of the following criminal activities— (o) participation in an organized eximinal group and racketeering (6) terrorism, ineluding tertorist financing + (6) trafficking in persons and migrant smuggtings : (a) sexual exploitation, including soxval exploitation of children: (@ illicic wafficking in narcotic dnigs and paychouopic substances + wil (g) illicit trafficking in stolen and other goods; it arms trafficking + (@) corruption (bribery ; () fied ¢ (&) currency counterfeitin (O counterfeiting and piracy of peoduets ; (m=) environmental erime + (rn) murder § {o) gtievous bodily injury 5 (p) kidnapping, illegal restrsintand hostage-taking + {g) robbery or theft ; () smuggling, including smuggling done in relation to customs and excise fies and taxes) : 3) tax crimes, related to direct taxes and indirect taxes ¢(0 extortion 5 (a) (©) piraeyss ((w) Insider ding and market mianiputation, oF (x) any other predivate offence under the Money Laundering (Prohibition) ‘Act, 2011 (as amended) and the Tertorism Prevention Aci 2011 (asamended), 10.41) Terrorism financing offences extend to any person or entity who solicits, acquires, provides. collects, receives, possesses or makes available funds, property or other services by any means «© (errorisis or verrorist orwanizations, direetly oc indiveetly with the intention orknow ledge orhaving.uasonable grounds to believe that such funds or property shall be used in full ar ie past to carry out a terrorist act by a terrorist or terrorist organization in line with section | af the ‘Tervorisin (Prevention) Act, 2011 (as amended), (2) Under these Regulations, cevorism finansing offences are prodivste offences for money’ laundering and shall apply regardless of whether the person cor entity alleged to have commiuted the offences in the same country aradifierer coumtry from the one in which the terrorist oF terrorist oryanization is located of the terrorist act oecurred or will occur. 1111) A Financial instinution shall report co the NEIL any assets frozen or actions taken in compliance with the prohibition requirements of the relevant United Nations Security Council Resolutions C(UNSCRs’) on tirorism, financing of proliferation of weapons af mass destruction, any Future successor resolutions and the Terrorism Prevention (Freezing of iniemational Terrorist Funds and Other Related Issues) Regulation, 2613, and any amendhnents that may be reflected by the competent authorities, (2) The reports in sub-regulation (|) of this regulation shall inelude all transactions involving attempted and concluded! transactions in camptiance with the Money Leundesing (Prohibition) Act, 201 (asamended), Terrorism (Prohibition) ‘Act, 201 (as amended) and the Terrorism Prevention (Freezing of International Terrorist Funds and Other Related Issues) Regulation, 2013, and any amendments that may be reflected by the competent autiorities (3) The administrative sanctions contained in Schedule Ito these Regulations co in the ‘Tetrorism Prevention (Freezing of International Terrorist Funls and Other Relaied Measures) Regulations, 2013 shall be imposed by the CBN on institutions under its regulatory purview. 121) Financial institutions’ secrecy and confidentiality laws shall not in any way, be used to inhibi the implementation of the requirements of these Regulations hiaving regard to the provisions of section 38 of Economic and Financial Crimes Commission Act, 2004; seetion 13 of Money Laundering (Prohibition) ‘Act, 2011 (as Amended) and section 33 of the CBN Act, 2007, B237 evox Fencing Offences, teeted Financial Sanetions Terrorism Fhnascing and Prolif CenfdeiiyB 238 Customer Due Diligeree (coo) (2) The relevant lavis cited in sub-regulation (1) of this regulation have tiven the relevant authorities the powers required to access information to properly perform their functions in combasing money laundering and financing of terrism, the sharing of information bewveen corapetent authorities ether damestically or intematicnaily, and the sharing of information between financial institutions rresessary or 8s may be required, (2) Banking seerecy or preservation of eustomer confidentiality shall noc be invoked a8 a ground for objecting to the measures set out in these Regulations or for refusing to be 2 witness to facts likely to constitute an offence under these ‘Regulations, the relevant provisions of the Money Laundering (Prohibition) Act 2011 (es amended), the Terrorism Prevention Act, 2011 (zs amended) ancl any ‘other relevant subsisting laws or Regulations, Pagr 1V—Cusiovier Dur DitiaeNce, Hionnie Risk Cusrosuns anb AcTiviris oF Pot!TicaLty Exrostin PPRSoNs 13.—{1) A financial institution shall undertake Customer Due Diligence (CCDD") measures whien— (0) business relationships are established : (@)carrying out eceasional transuctions above the applicable and designated threshold of US81,000 or its equivalent in other currencies or as may be determined by the CBN from time to time, including where the transaction is carried out in single operetion oF several operations thot appear to be linked : (c) earying out occasional transactions that arc wire transfers, including those applicable 19 cross-border and domestic transfers between financial institutions and when credit or debit cards are used 2s a payment system to effect money transfer ; (u) there isa suspicion of money laundering or terrorist financing, reverdless of any exemptions or any other thresholds referred to in these Regulations : or {@) there are doubts on the veracity or adequacy of previously obtained customer identification data, (2) The measures in parageaphs (a), (6) and (¢) of sub-regulation (1) ofthis regulation, shall not apply to payments in respect of — (0 any transfer flowing fiom a transection carried out using a ereeit or debit card so long as the eredit or debit card mmber accompanying such transfers Flow front the transactions such as withdrawals (rom a bank acount through en ATM machine, cash advances from a credit cerd or payment for goods. (i Inter-firancial institution transfers and setiternents where doth the originator-person and the beneficial-person are financial institutions acting en their own beball.(3) Financial institutions, must not after obtaining all the necessary documents and being so satisfied, repeatedly perform identification and verification exercise every time a customer condvets a transaction except there is @ suspicion ‘that the previously obtained information is not complete or hss changed. 14—{1) A Financial institution shall identify their customers, whether Permanent or occasional, natural er legal persons, or legal arrengements, and. verify the customers’ identities using reliable, independently sourced documents, data or information, (2)A financial institution shall carry out the full ange ofthe CDD measures contained in these Regulations, the relevant provisions of the Money Laundering, (Prohibition) Act, 2011 (as amended), ane any other relevant laws or Regulations, (3) Financial institutions shall apply the COD measures on a risk-sensitive basis, (4) Types of customer information o be obtained and identification data to ‘be used to verify the information are contained in Sehedule Il tathese Regulations, (5) Where the customers a legal person or a legel arrangement, the nancial institution shall — (a) identity any person purporting o have been authorized to act on behalf (of that customer by obtaining evidence of the cuscomer"s identity and verifying the identity ofthe authorized pesson ; and (2) identify ond verify the legal stays of the legal person or legal ment by obtaining proof of ineorporstion from the Corporate AfTairs atra Commission ('CAC’) ot similar evidence of establishment or existence and any other relevant information, 18—{1) A financial institution shall identify and take reasonable steps 1o verify the identity of a beneficial-owner, using relevant information or data obtained from a reliable source to satisfy ise that it knows who the beneficial. owner is through methods including — (2) for legal persons (0) identifying and verifying the natural persons, whete thay exist, that have ultimete controlling ownership imerestia legal person, takinginto cognizance the fact tha: ownership interests can be so diversified that there may be no natural persons (whether acting alone or with others) exercising, control of the legal person or arrangement through ownership ; (to the extent that i is manifestly clear under sub-peragraph (/) ofthis paragraph tht the persons with the controlling ownership interstarethe beneficial owners oF where no natural person exerts control through ownership interests, ‘demtify and verify the naturel persons, wihere they enisi, exercising control of the legal person or arrangement through other means ; and B239 demifica- tion ard verification of identity or Customers. Verification ‘of Benefia! ‘Ownershia,B 240 (where a rata person is ot identified under sub-paragraph (er) of this paragraph, Financial institutions shall identify and take ressonable measures 10 verify the Identity ofthe relevant natural person who holds senior rranagement position in the legal person. (@) for legal arangernenis—such as trust arrangement, financial institutions shalt identify and verify the identity of the settler, the trustee. the protector there they exist, the beneficiaries or class of beneficiaries, and any oxher natural person exercising ultimate or effective control ever the tus! including throngh a chain of control or ownership 5 and (c) for other types of legal arrangements, the finencial institutions shall identity and verily persons Th equivalent or similar positions. (2) Finaneial institutions shall in wspect ofall customers, determine whethes ‘a customer is geting on behalf of another person or not and where the eustemer is noting on behalf of another person, take reasonable steps to obtain sufficient ‘dentification-data and verify the identity of the other person (3) A financial institution shall take reasonable measures in respect of ceustomers that are legal petsons or legal arrengements to— (0) understand the ownership andl control structure of such a customer ; and (b) determine the natural persons that ultimately own or contro! the ceustomer. (4) Inthe exertise of its responsibility under this regulation, 2 financial in&itution shall take into account that aatural persons include those persons who exercise ultimete or effective coniral over the legal person or arrangement ‘and factors to be taken into consideration (a satisfectorily perform this funetion include— (a) for companies - the natural persons shall owa the controlling interests ‘and comprise the tind and management of the company ; end (6) for trusis— the natural persons shall be the setilo, the trustee oF person exercising effective control over the trust and the beneficiaries (5) Where a customer or an owner of the controlling interest isa company sisted on a stock exchange and subject 1 disclosure requiements (sither by stock xchange ules oF by law or other enforceable means) which impose requirements to ensure edequate tranapureney of beneficial ownership, oF s a majority-owned subsidiary of such # company, itis not necessary 1 idenlly ard verify the identity of any shareholder o* beneficial owner of the company (6) The relevant identification data referted to inthe foregoing regulation ray be abtained from a public register, the customer and otter reliable sources, nd for this purpese, ownership of 596 interest or more in « company isapplicable(7) A ‘Thai institution stall obtain infomation on the purpose and intended nature of the business relatioaship of its potential customers, (S14 financial institution shall conduct on-going Que Diligence on a business relationship, (9) The conduct of on-going Due Diligence includes scrutinizing the Wansactions undertaken by the customer throughout the course of the financisl institution und customer selationship to easure thal the Irensactions being Conducted are consistent with the financial institution's knowledge-af the customer hfs business, risk profiles and the source of funds. (10) 4 Firanicia! institucion shall ensure that documents, data o# information collated under the DD process are kept up-uy-date and relevant by underiakin, ‘exular periodie reviews of existing records, particulunly the records in tespect of higher-risk business-retationships or customer celeuories. 16. A financial institution ¢hall perform Enbanced Due Ditigence far high: visk customers. pusiness relationship or transactions includ (a) non-resident custom () privare banking customers (©) legal petsons or legal arrangements such ss trusts that are personal: assets-holding vehicles (companies that ave nominee-shareholeers or shares in bearer form (@) Politically Exposed Persons (*PEPs"), cross-border baciking endl business relationsitips, amongst ethers (6 cross-border banking ond business relationships, and (2) any other businesses, activities or professionals as may be prescribed by regulstory. supervisory or competent authorities, 1741) A financial institution shall give special attention to business’ rehitionships aud transactions with persons, including legal persons ‘und other nancial institutions, from countries which do not of insufficiently apply the FATF recommendations, (2) A financial institution shall report transactions that heve no apparent eoonomic or visible tawfil purpose to competent authorities with the backwround «and purpose of such tansuetions as fer as possible, examined and weiuten findings made available w assist competent authorities. (5) fltanciat institution that does 2 business with foreign institutions whieh do not apply the provisions of FATE recommendations shal take measures, including the following (a) steingent requirements for identifying clients and enhancement of advisories, including jurisdiction-specific financial advisories to financial institutions for identification of the beneficial owners before business relationships are established with individuals or companies trom that jurisdiction : B241 Application fo Enkancod ue Diligencesn, Higher Risk Costomers an Activity Abestion ta Nighi CountiesB 242 Politically Expand Persons (Per (b) enhance relevant reportiig mechanisms or systematic reporting of financial transactions on the basis that financial transactions wilh such counties fare mote likely to be suspicion (©) in considering requests for approving the establishment of subsidiaries ‘or branches or representative offices of Financial institaticns. i countries appiving the counter measure shall take into account the fact that the relevant Financial inscitution is from a country that does not have adequate AMLICFT systeins ; and (i) warn that non-financial seotor businesses that transact with natural or legal persons within that country might run the risk of money launderi limiting business relationships or financiet ansactions with the identifi ‘couniry oF persons i that country. 1841) Politically Exposed Persons (PEPS') are individuals who are or have been entrusted with prominent public functions in Nigeria or in Foreign counties, and people or entities associated with them ane! inelude (a) Heads of State or Government : (b) State Governors (c) Local Goverment Chairmen s {ch senior politicians, (@) senior goverment officials () judicial or military officials (g) senior execu ‘of siate owned corporations 5 (#) important political party officials i) family members or close associates of PERS + and (i) members of royal famil (2) PEPs also include persons who are or have been entrusted with prominent function by an international organization, including members ef senioe management including diteetors, deputy direstors and members of the board or ‘equivalent functions other than middle ranking or more junier individuals, {3) Financial institutions shall in addition to performing CD measures, to putin place appropriate risk management systems to determine whether potential customer of existing customer or the benelicial-owner is a PEP. (4) Financial insciutions shall obiain senior management approval before they establish business relationships with a PEP and shall render man returns om all transaetions with PEPSto the CBN and NFIL. (5) Where a customer hes been accepred or has on engoing relationship with a Grencial institution and che customer or beneficial-owres is subsequectly Found t6 be or becomes @ PEP. the financial institution shull obeatn senior ‘management approval to continue the business relationship,(0) A financial institution shall take reesonable nieasures to establish the Sores of wealth and the source of funds of customers and beneficial-owners identified as PEPs, (7) A financial institution that isin busivess relationship with a PEP shall ‘oncluct enhanced and on-going monitoring of that relationship snd in the event of any transaction that is abnormal, a firaneial insiution Shall flag the acecunt ‘nd report the transaction immediately co the NPTU as.a suspicious transaction 19—1) Por eross-border and correspondent banking and other similar reletiogships, a financial institution shall, in addition io performing thé normal COD measures, lake the following measures («) gather sufficient information about a respondent institution to understand fully the najue ofits business and deteomine from publicly aveitable information, the reputation of the institution and he quality ofsupervision, including whether oF not it has been subject 19 a money Ieundering. or terrorist financing investigation or regulatory action ; (6) assess the respondent institution's AMLICFT eontrels and ascertain that they are in compliance with FATF stanitards : {c) obtain approval from senior management hefore establishing correspondent relotionships ; ancl (ch document the respective AMLICFT fesponsibilities of the respondent institution, (2) Wherea correspondent relationship involves the maintenance of payable vecoumt, the fascial institution shall be satistied that {a) its customer (the respondent bank or financial institution) has performed the Hotel CDD obligations on its customers that have ginect access 0 the Secounts oF the correspondent Financial institution : and (0) the respondent financial institution is able w provide relevant customer ‘dentification dats upon request to the eorresponclent financial instit 20—4}) A financial institution shall identity and assess the money laundering ‘or terrorist linancing risks that may arise in relation to the development of new products and new business practices (including new delivery mechanisms) and the use of new or developing technologies far both new and pre-existing prockicte (2) Financial institutions are to ensure that any risis assessment to be undertaken is carried out prioeto the launch of theriew products, Eusiness practices or the use of new or developing technologies are to be documented and appropriate measures laken to manage and mitigate such risks, (3) financial institution stall have policies ind peosedures in place to wnddress any specific risk associated with non face-to-face business relationships oF B23 Cross Border ane Corrspen New Teeteylegies and Non freetotice TransetoesB 244 Money or Nalie ranseer (ar) Seles, even Amaches and Subsiciovic. (4) The policies and procedures requieed to be taken shall be epplicd szutomatically when establishing customer relationships anil condicting on-going Due Diligence and measures for managing the risks are to fschude spec effective CID procedures that apply 1 non face-to-face astomers. 21.—(1) All natura snd leyal persons performing Money or Value transfer Service (/MVTS operators all be license by the Banking and Payment Deparment of the CBN and stall besubject to ths provisions ofthese Regulations, the relevant provisions of the Money’ Laundering (Prohibition) Act, 2011 (as amended), he Terrorism Prevention Act, 20L| (asamended) and any other rekevant laws or Regulations. (2) MVTS Operators shall maintain » curreat list of theie agents and render quarterly retums w the CBN andl the NEU (3) In addition to the requirement specified in this reyulation, MVTS ‘Operstors shall gother end maintain sufficient information about theirs correspondent operators or any ather operators of instiiulions they are oF likely to do business with ents and (ay Mv (a) assess their agents’ and correspondent operators’ AML/CFT controls and asceriains that such controls are adequate and effective Operators shall — (4) obtain approval fram the CBN before establishing new correspondent relationships ; and (e) document and maintain u checklist of the respective AMLICET. responsibilities of each of their agents and correspondent operators, 22.{|) A financial institution shall ensure that its foreign branches and subsidiaries observe AMLCFT measures consistent with the provisions of these Regulations and apply the measures to the extent that the ioeul or host countrys laws and Regulations pertait (2) Financial institutions shall ensure that the principle seferted t© in sub- regulation (1) of this regulation is observed by their branches and subsidio countries which do not orinsutfiisntly apply’therequirements of these Regulations (3) Where the minimam AML/CFT requitements contained in these Regulations and those of the hesi country differ, branches end subsidiaries of Nigerian financial institutions in the host counry shall apply the h lard provided in these Regulations and such standards shall be applied to the extent that the host country’s laws, regulations or other measures permit. er st (4) A financial institation shall inform the CBN in writing when theie foreign branches of subsidiaries ane tmable to observe the appropriate AML/CFT measures where they ate prohibited to observe such measures by the hast country's laws, regulations or other measur(5) Finaneial institutions shall subject to the AMLICFT principles contained in these Regulations, spply consistently the CDD measures at their group levels, taking into consideration the wetivity of the customer with the various branches and subsidizries 23.1 Forevery wire tansier of USS 1,000.0¢ more, the ordeting financial institution shall obtain and maintain the following information relating to the originator of the wire transier— (a) the ame oF the oviginaior (6) the originator’s account umber (oF & unique reference number where no account number exists) y and (e) the ariginater’s address (which address may be substituted with a national identity number), (2) For every wire transfer of US§ 1,000 or more, the ordering financial institution shall obtain and verily the identity of the originator in accordance with the CDD requirements contained in these Regulations (3) Por cross-border wire transfers of USS 1,000 oF more, the ordering financial institution shall include the full originator information in sub-regulation (1) of this xegulation in the message or the payment form accompanying the wire rane ee 4) Whete however, several individual cross-border wiee tainsfers of U: 1,000 or moze om a single originator are hundled in a bateh-file for transmission to beneficiaries in another country, the ordering financial institution should only include the originator’s account number ee unique idcmiifier on each indivicual cress-border wire transfer, provided that the batch-file (in which the individual fansfers are batched) contains {ill originator information that is filly waeeable within the recipient coun For every domestic wire transfer, ths ordetiag Finaneiai institution shall («) include the full originator information in the message or the peyment form accompanying the wire ansfer ; or (h) include only the originator the messave or payenent Foam. ‘count number ora uni identifies, within (6) The inclusion of the originator’s aecount number or the originator’ Uwigue identifier alone should he permitted by a Ginancial institution only where the originater’y ful information can be made available to the bene ieiary financial institution and to the sppropriate authorities within thice business day's ofeeeiving she request (9) Each intermediary and ber chain shall ensure that all the originator’s inforration that aecomipunie lronsfer is transmitted with the transfer eficiary financial institution in the payment wire B 245 Wire IronstinsB 246 Simplified Dus Difizenew Anplicable 8 Low isk Customers Trensictiens Produets (8) Where technieal limitations prevent the full originator information accompanying a cross-border wire transter from being transmitted with a related sary time 19 adapt payment systenis}. ¢ record shall be Kepi for ive years by the reeciving intermediary Financial institution OF all the information rezeived from the ordering financial institution domestic wire transter (during the neces ficiaty's finaneial Institution shall adopt effective risk-based procedures for identifying are handling wire transfers that are not accompanied by complete originator’s information. (10) The Jack of complete originator’ information is considered as. fretor in assessing whetlier a wire transfer or related transactions ure suspicious, (11) Financial intitations shall file # Suspicious Transaction Report ant wire {transfers with incomplete originator’s information to the NFU. (12)'The beneficiary’s financial institution shail restrict oF even terminate its business relationship with the finaneial institutions that fil to meet the standards spveified in this regulation (13) Cross-border aud domestic transfers between finan, ‘not applicable 10 the following types of payments— ia institutions are (a) any wansfer that flows from a transaction carried out using a credit or debit card so long as the credit or debit card nurmbar aceompanies all iransters owing from the transaction, such as withdrawals trom a bank account through fan ATM machine, eash advances Gom a credit card or payments for goods ancl services, provided that where eredit or debi eards are used as payment gysiom to effect a money transfer the necessary information should be inelusled in the messave t and (5) transfers and settlements between financial instiuation where both the originator persortand the beneficiary person are finaneial institutions acting en their own behalf, 24.—(1) Where there ate low risks, financial institution shall apply reduced, cor simplified measures, (2) There are low risks in circumstances whe (2) the risk of money laundering or terrorist financing is lower (5) information on the itemtity of th a customer is publicly avatlable = or vistomer imu the benesletel owner of (e) adsquate checks and controls exist elsewhere tn the naticnal systems, (3) In circumstances of low-risk, financial institution shall apply the siuuplified or reduced CDD megsures when identifying snd verifying the identity of their castorners and the heneficisowners.(4) The circumstances whieh the simplified or reduced CBD measures refer to in sub-regulation (3) of this regulation are applicable include cases of (0) Pinan! institutions—provided they are subject to the requirements for the combat of money lsundering: and terrorist financing which are consistent with the provisions of these Reaulations nd are supervised for compliance with them () Public companies (listed en a stock exchange or similar situations) that are subject regulatory disclose requirerticals : («) Insurance policies for pension seheies where there #8 m0 surrender- value clause and the potiey cannot be used as collateral : and (#) a pension, superannuation or similar scheme that provides retire benefits to employees, whore contributions are mude by way of deduc from wages and the scheme rules do not pecmi! the assignment ofa member's interest unider the scheme, (5) Financia) institution shall not apply the simplified CDD measures toa {Ustomer where there is suspicion ef money laundering: or terrorist financing oF specific higherrisk scenariosand in such a eireumstanve, enhaneed Due Diligence is mandatory, (6) Financial institutions shall adopt CDD measures on a risk sensitivee basisand have regard torisk involved in the type of eustomer, procuet, remnsaction 9 the location oF the customer and were there is doubt; thay are gireeted 10 clarify with the CBN 25.11) A financial institution shall obtain and verify the identity of dhe ‘customer, bene ieial-owner and occasional customers before or during the course of establishing @ business relationship or conducting transactions tor them. (2) Finaneial institutions are permitted to complete the verification of the identity of the customer and benclieal owner following the establishment of the business relationship, only where— (o) this can take place sean as reasonably practicuble ; (A) it fy essential not to interrupt the normal business conduct of the customer in cases of non fice-to-fice business, securities transactions aid thers 5 oF (e) the money laundering risks can be effectively managed, (3) Where a customer is penmitted to utilize the business relationship prior to verification, financial institutions shall adopt, risk management procedures relevant to the conditions under whieh this may eeu, (4) The procedures contemplated under sub-regulation (3) of this regulation shall include @ st of measices such as— (2) limitation of the number. types or amount of transactions that may be performed ; and B 247 Tiiniowor ification,B28 [d) the monitoring of large ar complex transactions being carried outautside the expected norms for that type of relationship. Exist 26.—{)) A financial institution shall apply CDD requirements to existing Cistoines —gustomers on the basis of matedalicy and risk, and continue 10 conduct Due Diligence on such existing relationships at appropriate times, (2) The appropriate time to eonduet COD by financial itstitutions is where (a)a transaction of significant value takes place : (h) @ customer documentation standards change substantially : {(c) there is a material change in the way that the aecount is operated ; or (a) the institution becomes aware that it lacks suffieient information about (3) A financiol institution shal property identity the eustomer in accorcar he ctiteria contained in these Reguladions and the customer identification ‘records shall be made available to the AML/CFT compliance officer, uther appropriate stat? and competent authorities, Faitureto 27-41) A financial instivutn thet fits wo comply with dhe CDD measures complete pursuantto these Regulations shall coo, (2) not be permitted to open the account, commence business perform the wansaeiion ; and (A) be required fo render a Suspicious Transaction Report to the NFTU (2) The financial institution that has commenced the business relationship shall terminate the business relationship and tender Suspieious Transaction Reports tothe NEI, (3) Where, a financial institution suspects that transactions relate to money Jaunidoting or terrorist finaneing, during the establishment or course ofthe customer, relationship. or when conducting eceasional iransactions, it shall immeditely— (o) obtain and verity the idersity OF the customer and the beneficial owner, whether permanent or occasional, irrespective of any exemption or any designated threshold that mistht atheraise apply : and ition Report STR") to the NEIL without (4) render « Suspicious ‘Tran delay (4) Whevea financial institution suspects that a transaction relates to moriey laundering or terrorise financing and itbelievas that performing the CD process, shall tip-aif the customer. it shall (w) not pursue the CDD process, and ())file-an STR 1p che NFTU without delay.(5) A Tnane‘al institution shall ensure that ils employees are aware of, and sensitive to tne issues mentioned under this regulation, (6) Whien assessing risk, financial institution shall consider all the relevant isk factors before determining the level of overall risk and the appropriate level of mtigatin to be applied (7) Financial institutions are allowed to differentiate the. ‘extent of measures, depending on the type and level of risk for the various tisk factors ed neg Pumticuersitution they may— () apply the normal CDD for eusicmer acceptance measures: (0) enhanced CDD for on-gcing monitoring ; or (¢) apply any of the procedures as may be considered appropriate in the cireamstan 28.—{1) A financial ins EDD shall— lution that relies upon.a third party to conduct its {c) immediately obtain the necessity information conceining the property ‘hich has been laundered or which constitutes proceeds from instrumentalities {sedin or intended for use in the comission ef money laundering and financing of terorism or other relevant offences ; and () satisfy itself that copies: of identification data and other relevant documentation relating to the CDD requirements shall be made available fom he third party upon request without delay, (2) The Finaneia) institution shal saisfy itself that third party ies regulated and supervised institution and that it has measures in place to comply with ‘equiremenis of COD reliance on intermediaries and other thd parties on CDD a coninined in these Regulations. (G) Financial institutions relying on intermediaries or other thd parties who have no outsoursing, agency, business relationships, accounts or vansaetions with itor thes clients shall perform some of he elements ofthe COD process un the introduced business. (4) The criteria to be met in carzying the elements of the CDD process by ‘he Financial institution referred to in sub-regulation (3) ofthis regulation are to (2) immediately obtain trom the third perty the necessary information cconceming cermin elements of the CDD process ; (A) take adequate steps to satisfy itself that copies of identification data andl ‘other relevant documentation relating to CDD requirements shall be made ‘available from the third party upon request without delay (c) sotisfy themselves that the thitd party is regulated and supervised in ‘tecordance wit Core Principles of AML/CFT and has measurse in place to comply with the CDD requirements set out in these Regulations : and B 249 Rellanczon Interrmediae siesand Third Pardes on cop PunctionB 250 Masewerance of Records “Transactions, Auention ‘on Campion andunaval lage “Transactions, Swxpicions ‘Transaction Monitoring, (40) ensure thatadequate Know Your Cusiomer (*KYC") provisions are apalied othe third party in order to obtain account information for competent authorities (5) Notwithstanding the conditions spesitied in this regulation, the ultimate responsibility for customer identification and verification shall be with the financial institution relying on the third perty Paar V—MAINTINARCE OF RECORDS 29,—(1) A financial institution shall maintain all necessary records of transactions, both domesticand international for at least five years after completion of the eansaction ot such longer period as may be required by the CBN and NIFILI, provided that this requirement shall apply regardless of whether the account or business relationship is on-going or has been terminated, (2) The components of records of transaction to be malntained by fisancial institutions include the— (a) roeords of customer's and beneficiary's names, addresses ot other jdentisying information normally rezorded by the intermediary (0) neture and date of the transaction (c) type and amount of currency involved ; and {i type and identifvring number of any account involved in the transaction. 3) Finoncial institutions shell maintain records of the identification dots, account files and business correspondence for at least five years after the termination of an acount or business relationship or such longer period vs may be rexquired by the CBN and NPTU, (4) A finaneial institution shall ensure that all customer-transaciion records and information are available on a timely basis to the CBN and NFIU. 30.—{1) A financial institution shall pay special attention co all complex. unwately large transactions oF unusval partes of trensecsions that have re visfole economic or lawful purpose, {2)A financial iostication shell investigate suspicious transactions and report iis findings tothe NFIU immediately. in compliance with the provision of section 6(2){¢) of Money Laundering (Prohibition) Act, 2011 (as amended), {3) For the purpose of sub-regulation (1) of this regulation, complex or unusually fare tansaction’ er, ‘unusual pattern of transactions’ incluce significant transactions rélating Lo a relationship, transactions that execed certain. limits, very fagh account tumover inconsistent with the size of the balance or transuetions which fall outside the regular patieen of the account's activity. 31.—{1) Where # transaction— (a) involves a frequency which is unjustifiable or unreasonable + (4) is surrounded by conditions of unusual or unjustified complexity ; (oyappeats to have no economic justification or lew ful objective : or(cf in the opinion of the francial institution involves terrorist financing or is inconsistent with the known transection pattern of the account er business relationship, the transaction shall be deemed to be suspicious and the financial institution shal seek information from the customer as to the origin and destination of the find, the aim of the transaction and the identity of the beneficiary. 2) Where a financial institution suspects that the funds mentioned under sub-regulation (1) of this regulacion— (are decived from legal or illegal sources but are intended to be used for am act of termrism ; (&) are proceeds of a crime related to terrorist financing ; ot (c) belong to a porson, entity or organization considered 4s terrorists, it shall immediately and without delay report the matter to the NFIU and shell ‘not be Tiable for violation of the confidentiality rules and banking secrecy obligations for any lawful action taken in furtherance of this obligation (3) A financial instittion shall immediately and without delay :but not later then within 24 bours— (4) draw up a writen ceport containing ll relevant information on the transaction, together with the identity ofthe peineipal and where applicable, of the beneffciary or beneficiaries : (4) take appropriate action to prevent the hnundering of the proceeds of a crime, an illegal actor financing of terrorism ; and {(c)repott othe NFIU any suspicions transaetion, stating clearly the reasons for the suspicion and actions taken {4) The obligation on finaiicia] instiutions provided for in this regulation shall apply whether the transaction is completed or not. (G) A finencial institution that faitsto comply within the stipulated timeframe with the provisions of — (2) subsregtation (1) of tis euttion is Hable to 2 fre 091,000,000 for eech day the offence subsists ; or (b) subregulation (2) of this regulation is Tile to sanction as stipulated under the Tertosism (Prevention) Act, 201 (as amended), (6) Any person wino being a dirsetor or emmpleyee of a financial institution ‘wars orin any other way intimates the ow.,er ofthe funds involved in a suspicious (ausaction report, or who refrains from making the report as required is liable to 1 fine of not less than N10,000,000 or banned indefinitely or for a period of net less than 5 years from practicing his profession, B 251B 252 Progedune forthe Monitoring, and Repoting or Suspicious Trarwactios, (7) The ditectors, officers and employees of financial institutions who carry cut their duties in good faith shall not be liable to any eivi or criminal liability, or have any eriminal or civil proceedings brought against them by their customers 32.—(1) A financial instinution shell have @ written Policy Framework that guides and enables its staif to monitor, recognize and respond appropriately co suspicious transactions in addition to the list of Money Laundering “&ed Flags” provided for in the Thicd Schedule to these Regulations, (2) Bvery Financial institution shall appropriately designare an officeras the AMLICFT Compliance Offices to supervise the monitoring and reporting of terorist financing and suspicious wansections, aiong other duties, (3) Financial institutions shail be alert to the various pattems of conduct that are known to be suggestive of money laundering. and shall maintain and disseminate a checklist of such transactions to the retevant staff (4) When any staf ofa financial institution detecisany “red flag" or suspicious money laundering or terrorist financing activity, the institution shall promptly ingtituce a “Review Panel” under the supervision of the AML/CFT Compliance Officer and every action taken shall be recorded, (5) A financial institution and its staftshal! maintain confidentiality in respect of any investigation conducted in pursuance ofthese Regulations andany suspicious transtction report that may be filed with the NFIU consistent with the provision of the Money Laundering (Prohibition) Act, 2011 (as amended) and the Terrorism, (Prevention) Act, 2011 (as amended), and shall not sy anything that might “ip ‘off eny person or entity that is under suspicion of money laundering, (6) financial institution that suspects or has reason to suspect that funds are the proceeds of a criminal activity or are related to terrorist financing shall promptly report its suspicions to the NFIU. (2) All suspicious transactions, including attempted transsetions are to be reported regardless of the amount involved. (8) The requirement to report suspicious transactions applies regardless oF whether they are considered to involve tax matters or other matters. (8) Financial institutions, their directors, officers and employees whether permanent or temporary, are prohibited from disclosing the fact that a report of a ‘transaction shall be filed with the competent authorities, (Jo) Incompliance with the Terrorism (Prevention) Aci, 2011 (asamenced), financial institutions are also requiced to, forward to the NFIU without delay but not later than within 24 hours, reports of suspicious transactions relating to— (@) funds derived trom illegal or leyal sources are intended vo be used for any act of terrorism 5 (2) proceeds ofa crime related to terrorism financing ; or (0) proceeds belonging to a terrorist, terrorist entity or organization,Pater VI—Monnioxisa, INnuanal. Conntons, PRONUITIONS AND SANCTIONS 3311) A financial insttution shall establish and maintain internal procedures, policies and controls to prevent money ‘aundeting and financing of terrorism and to communicate these to their eimplayces. (2) The procedures, policies and controls established by financial institution shall cover operational matters including the CDD, record retention, the detection of unusual and suspicious eunsactions and the reporting obligation, (3) The AMLICET Compliance Officer and appropriate staf gre to have timely access io customer identitTeation data, CDD informetion, transaction records and other relevant information. (4) Financial institutionsareaccordinely required 1a develop progiamsegainet money laundering and terrorist financing, such 2-— (a) the development of internal policies, procedures and controls, including appropriate compliance management arrangement and adequate screening procedures to ensure high standards when hiring employees ; (6) on-going employee iraining programs to ensure that employees are Kept informed of new developments, including information on current ML and FT techniques, methods and trends ; (©) providing lear explanation of all aspects of AMLICFT laws and obligations, and in particular, requirements coneersing CDD and suspicious twanseetion reporting ; and (2) adequately resourced and independent audi with the procedures, policies and contrals. (5) A financial institution shall pat in place a structure that ensures the operational independence of the Chief Compliance Officer (*CCO') and Branch Complianes Orticers. function to rest compli 34.1) Failure to comply with the provisions contained in these Regulations: shall attract appropriate sanction in accordance with the provisions of the MLPA. 2011 (as amended), existing laws on AMLICFT and as provided for under the provisions of the Second Schedule to these Regulations, (2) A Financia} institution, its officers or employees shall not benefit From any violation of extant AMLICFT laws and Regulations (3) A financial institution that fails to comply with, or contravenes the provisions in these Regulations, shall be subject to sanctions by the CBN (including the suspension or withdrawal of iis operating licence) (4) Any individual, being an official ofa financial instination, who fails 10 fake reasonable steps to ensure compliance with the provisions of these Regulations stall be sanctioned accordingly based on relevant provisions of the Money Laundering (Prohibition) Act, 2011 (as amended), the Terrorism (Prevention) B 253 Inter Contos, Compliance end Audi. Sanctions and Penstis toe Non Compliance,Bas4 Prohibition oF Nuinboied ‘Anorivmou Acvounts ‘Aecounis in Fieitious namessind Sell pans. ‘Othe forms. of Reverting. ‘Act, 2011 (as amended) end any other relevant law or Regulations, the extant administrative sanction regime issued by the Central Bank ef Nigeria or direction y the Aftomey-General of the Federation; including revocation, suspension or \witherawal of professional licnces by appropriate self-regulatory organizations (8) Criminal cases involving officers and the financial institutions shall be referred totherelevant lew enforcement ayencies forprasecution and the offender shall be liable to forfeit any pecuniary benefit obtained as u result of the violation or breech, (6) Incidence of false declaration, tilse disclosure, non-dectaration oF ion disclosure of retums to be rendered under these Regulations by a financial institution or its officers shall be subject 19 administrative review and sanctions as stipulated in theseor ether Regulations and the appropriate administrativeor civil penaies applic, 35.—(1) A financial institution shall not keep anonymous accounts or accounts in fictitious names. (2) A financial instivution shall not establish correspondent relationships: with high risk foreign banks, including shell banks with no physical presence in ‘any country or with eorressondent banks that permit their accounts to be used by such banks. {3} Shel! benks are prohibited fiom operating ih Nigeria as provided in Money Laundering (Prohibition) Act, 2011 (as amended) (@) A financial institution shall— (a) not enter into or continue fespondent or correspondent banking. relationships with chell hanks; and (b) satisfy ise that a sespondent financial institution ina foreign country does not permit its aecounts to be used by shell banks (3) A financial inscitution, corporate body orany individual that contravenes the provisions of this regulation shall on conviction be liable 10 a fine of not less than 810,000,000 and in addition to the— {ai prosceution of the principal officers of the corporate body + and (6) winding up and prehbition offs re-onstitution o incorporation under any form oF guise. (6) Afinanciel institution shall rake all necessary measures to setisty itself that respondent financial institutions ina foreign country do not permit their ‘aceounts co be used by shell banks. 36.—(1) A Financial institution shall report in writing any single transaction, lodgment or transfer of funds in excess @f"P45,000,000 arid M1 0,000,000 or their ‘equivalent made by an individual and comporate body respectively to the NFLU in aevordance with seetion [0(1) of the Money Laundering (Prohibition) Act. 2011 fas amended). (2) In compliance with seetion 2(1) of the Money Laundering (Prohibition)Act, 2011 (as amended) financial institutions shall render reports in writing on tranefars to or from a foreign country of funds or securities by a person or body corporate including a Money Service Busiiess of sum exceeding S$ 10,000 or its equivelent to CBN, Securities and Exchange Commission SEC") and the NFIU within 7 days from the date of the transaction, (3) Details ofa report sencby a financial institution to the NFIU shall nox be disclosed by the institution or any ofits officers 10 any other person. 37-—(1) A financial institution shall design comprehensive employee. education and training programmes, to make employees fully aware of theit obligations and also (0 equip them with ecleyana skills required for the effective discharge of their AMLICET tases (2) The siming, coverage and coment of the employee trainin programme shall be tailored io mezt the needs ofthe financial institution ensure compliance with the requitements and provisions of these Rezulations. (3) A financial institution shall provide comprettensive training programmes for sal? covering compliance officers and as part of the orientation programmes, for new staff aad those posted to the front office, banking operations and branch affice stall, particularly cashiers, account opening, mandate, and marketing staff, internal contiol and audit steft and managers. (4) A Ginancial institution shall render quarterly returns on their level of compliance on their education and training programines to the CBN and NFIU. (5) Anemployee training programme shall he developed under the guidance of the AMLICFT Compliance Dificer ia collaboration with the top Management. (6) The basic elemenis of the employes training programme of financial institutions shall include— (0) AML Regulations and offences ; (0) the nature of money laundering, (c) money laundering ‘red flags’ and suspicious transactions, including, trade-based money laundering typologies (d) reporting cequirements : (@) Customer Due Diligence (f) isk-based approach to AML and CFT; and (g) tecord keeping and retention policy. (7) financial institution shall sebmitits annual AMLICFT employee taining programme for the following year to the CBN and NFIU at the end of June and December every financial yeat B 255 AMLICET Enaployee cucation ant Trinin Programe,of omptoye cond Protection of Si? wo Report Violations, Addition sreasot AMLICET Risks ‘Adkiional Precelares ne Miligaons Testng Por the adeyuncy oF tke AML cer Conplinee, 38.—(1) A financial institution shall monitor their empleyees’ accounts for potential signs of money laundering, (Q)_A Financial institution shall subject employees aecounts to the same AMLICET procedures as applicable to other customers" accounts (3) The requirement specified in subregulation (2) of this regulation shall be performed under the supervision of the AMLICFT Chiel Compliance Ofer and the account of this officer is in tum to be reviewed by the Chiel Internal Auditor ora person of adequate and similar seniority. (4) Compliance reports including findings shall be rendered to the CBN and NFIU at the end of June and December of every year, (5) The AML/CFT performance review of staf shall be part of employees’ annual performance appraisals 39.—(1) A financial institution shall make it possible for employees to report any violations of the institution’s AMLICFT compliance programme to the A ML! CFT Compliance Officer (2) A financial institution shall direct i¢s employees in writing toakways coe operate fully with the Regulators and lew enforcement agents and to ptomptly Teport suspicious transactions to the NFIU: (3) Where the violations involve the Chief Compliance Officer, employess shall reportthe violations te a designated higher authority such as the Chief imie-nal Auditor, the Managing Direetor or in eanfidence to the CBN oF to the NFIU. (4) A financial institution shall inform itsemployees in writing tomake their reports confidential andl to assure employes of protection. fram victimization as a result of making any report. 40.—(1) A financiel institution shall review, identify and record other areas of potential money laundering risks not covered by these Regulations and report the risk quarterly to the CBN and NFIU. (2) A financial institution shall review its AMIICFT frameworks from time to time with @ view to decermining theit adequacy and idenuifving other areas of potential risks not covered by the AMLCET Regulations 41. After carrying oui the review of the AML/CFT feamework and identified sof potential money laundering vulnerabilities and risks, financial institution shall design additional procedures and mitigants as eontingeney plan in thelt AML/ CFT Operational Manua's with ingication on how such potential risks shall be appropriately managed where they crystallize and details of the contingency plan rendered to the CBN and NETU on the 31st December of every financial year, 4211) A financial institution shall make. policy ccmniiment and subjest its AML/CET Compliance Programme to independent-testing or require its intemal audit function to determine the adequacy, completeness and effectiveness of the programme: