The Central Bank of Nigeria (CBN) has ordered all Deposit Money Banks (DBMs) to identify and freeze accounts receiving “illicit flows” in the country.
The CBN gave the directive to authorised dealers, mainly banks, in a circular signed by Mr W.D Gotring, the Acting Director of Trade And Exchange Department, and titled, “Illicit international money remittances through the banking system.’’
The apex bank had observed that some Deposit Money Banks (DMBs) were operating accounts either as companies or masking themselves as individuals for the purpose of illegally receiving money transfer flow.
CBN says the DBMs have the absolute responsibility to conduct ‘Know Your Customers’ Business’ checks on all their customers to ensure that they do not transact illegal/illicit flows.
The banking industry regulator further directed DBMs to ensure that they “submit the mandate and account details of these accounts held in Naira or foreign currency to the CBN for onward reporting to the security agencies.”