The Central Bank of Nigeria (CBN) has introduced a new set of penalties for organisations that flout its Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) rules.
The central bank stated this in a circular titled: “CBN Anti-Money Laundering and Combating the Financing of Terrorism (administrative sanctions) regulations, 2018.”
The new regime stipulates fines on banks, their directors and other key officials for money laundering infractions.
The circular was developed by the CBN in collaboration with the Office of the Attorney-General of the Federation (OAGF).
According to the CBN, banks and board members or chief compliance officers will all be sanctioned for 31 out of the 48 money laundering infractions listed in the new regime.
For each of the 31 infractions, the new regime stipulates minimum fines ranging from N500,000 to N1.2 million on board members or chief compliance officers or the internal auditor, and fines ranging from N1 million to N20 million on the offending bank.
It added: “Banks and other financial institutions are by this circular, informed of the attached ‘CBN AML/CFT Administrative Sanctions Regime’ the application of which comes into effect as at the date of the Gazette. Kindly ensure compliance.”
According to the CBN, failure to approve the AML/CFT policies and procedures by a bank attracts a minimum penalty as follows: N1 million on each member of the board and N20 million on the Deposit Money Banks (DMB).
Also, failure to review/ update the AML/CFT policies and procedures at least every three years would attract a minimum penalty of N750,000 on the Executive compliance officer in the first instance and N750,000 for each year that the contravention continues and N500,000 on the Chief compliance officer in the first instance and N500,000 for each year that the contravention continues. Similarly, N5 million fine would be levied on the bank in the first instance and N1 million for each year that the contravention continues; “Failure to communicate the AML/CFT program of the organisation to the employees.
