CBN orders PSBs to report suspicious funds with NFIU

The Central Bank of Nigeria (CBN) has directed all payment service banks (PSBs) in the country to file any suspicious transaction and report to the Nigerian Financial Intelligence Unit (NFIU).

The CBN gave the directive in a circular, titled: “Supervisory framework for Payment Service Banks”, on Thursday.

PSBs are banks that accept deposits from individuals and small businesses, carry out payment and remittance services within Nigeria, issues debit & prepaid card, operate electronic purse, and other activities prescribed by the CBN.

The apex said the PSB shall identify and file suspicious transaction reports to the NFIU, where funds, assets or property are suspected to have been derived from criminal activities such as terrorism, including terrorist financing; cybercrime; tax crimes, related to direct taxes and indirect taxes.

“A PSB shall investigate suspicious transactions and report their findings to the NFIU immediately, in compliance with the provision of section 6(2)(c) of Money Laundering (Prohibition) Act, 2011 (as amended),” it said.

“All suspicious transactions, including attempted transactions are to be reported regardless of the amount involved.

It also said a PSB in a business account with a politically exposed person (PEP) shall flag the account red in the event of any transaction that is abnormal and report such activity to the NFIU as a suspicious transaction.

CBN further said any PSB that warns the owner of the funds involved in a suspicious transaction or refrains from making report to the NFIU is liable to a conviction of not less than N10 million or banned indefinitely or for a period of five years from practicing his/her profession.