Banks cautioned over North Korea, Iran, Myanmar transactions

The Central Bank of Nigeria (CBN) has asked banks to be careful in handling transactions from Democratic People’s Republic of Korea (North Korea), Iran and Myanmar because of the high risks associated with them.
In a circular yesterday, entitled: Administrative Letter to Banks and Other Financial Institutions, CBN Director, Financial Policy and Regulation Department, Chibuzo Efobi, drew the attention of banks and other financial institutions to the outcomes of the Financial Action Task Force (FATF) Plenary conducted from June 21-23, this year.

The circular also discussed the subsequent addition of Cameroon, Croatia and Vietnam to the list of jurisdictions under “Increased Monitoring.”

“Furthermore, Democratic People’s Republic of Korea, Iran and Myanmar remain on the list of high-risk jurisdictions subject to “Call for Action”.

“Consequently, enhanced due diligence should be applied, and in severe cases, counter-measures may need to be implemented to safeguard the international financial system,” it said.

“Additionally, we would like to emphasise that the suspension of the Russian Federation’s membership in the FATF remains in effect. Fls are to remain vigilant and be alert to possible emerging risks resulting from the circumvention of measures taken to protect the international financial system.

“In light of these developments, Fls are directed to note all addition to jurisdictions under “Increased Monitoring” as well as high-risk jurisdictions subject to a “Call for Action” and take necessary measures to mitigate these risks effectively.”