CBN directs banks to comply with Nigeria, UN sanction lists

The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to comply with applicable Nigerian and United Nations sanctions lists.

In a letter addressed to all banks, payment service banks and other financial institutions on Thursday, and signed by Amina Opusunju, director of the compliance department at the CBN, the apex bank said the financial institutions should not allow individuals on the list to use their systems.

“The Central Bank of Nigeria (CBN) reminds all banks, payment service banks and other financial institutions (Financial Institutions) of their ongoing obligations to comply with applicable sanctions regimes,” the letter reads.

“Including but not limited to the United Nations Consolidated Sanctions List, the Nigerian Sanctions List maintained in line with the Terrorism (Prevention and Prohibition) Act, 2022, CBN AML/CFT/CPF Regulations, 2022 and CBN Guidelines on Targeted Financial Sanctions Related to Terrorism and Terrorism Financing, 2022.

“Other relevant regional or international sanctions lists, as applicable.”

Opusunju noted that financial Institutions are required to maintain a robust and dynamic sanctions compliance framework that enables them to identify and respond promptly to updates or changes across all applicable sanctions lists.

“Prevent the use of their systems and platforms for transactions involving designated individuals or entities,” she said.

“Conduct real-time screening of customers, transactions, and beneficial owners; and file appropriate reports with the Nigerian Financial Intelligence Unit (NFIU) and notify the CBN, where necessary.

“The effectiveness of sanctions compliance programmes must be regularly reviewed and aligned with legal and regulatory requirements and expectations.”

Opusunju said financial institutions are also reminded that failure to comply may result in enforcement action or regulatory sanctions.

The director added that the letter serves as a regulatory reminder and all financial Institutions are expected to take note, act accordingly and ensure continued compliance with applicable laws and CBN directives.