Banking Updates: Recent Landmark Regulations, Legislation & Case Law Affecting The Banking & Finance Sectors May 2017 Edition

This month’s newsletter contains a review of:

  • The Central Bank Of Nigeria’s (CBN’s) letter to Other Financial Institutions (OFIs) regarding the rendition of returns in connection with anti-money laundering and combatting the financing of terrorism (AML/CFT); and

  • the CBN circular clarifying items valid for foreign exchange (FX) in the Nigerian FX market; and

Importantly, this edition also highlights key provisions of the Secured Transactions in Movable Assets Act, 2017 (otherwise known as the Collateral Registry Act[1]); and the Credit Reporting Act, 2017.

LETTER TO ALL OTHER FINANCIAL INSTITUTIONS (OFIs) ON RENDITION OF RETURNS ON ANTI-MONEY LAUNDERING AND COMBATTING FINANCING OF TERRORISM (AML/CFT)

Following the CBN’s observation of the general low level of rendition of AML/CFT returns by OFIs, which has hampered efforts to effectively assess and mitigate money laundering risks in the industry, the CBN pursuant to a letter dated May 2, 2017 (the “Letter”) and referenced (REF: OFISD/DIR/CIR/GEN/17/128) reiterated the relevant regulatory requirements in this regard.

The Letter refers to a previous CBN circular dated August 12, 2012 and referenced (REF: FPR/DIR/CON/BOF/01/036) which required banks and OFIs to render AML/CFT returns in prescribed formats and at appropriate periods in line with extant AML/CFT laws and regulations. In particular, relevant provisions of the Money Laundering Prohibition Act 2011 (as amended) and the CBN AML/CFT Regulations 2013, require banks and OFIs to render various returns to the CBN and Nigeria Financial Intelligence Unit (NFIU).

[1] While this is not the short title of the Act, the Secured Transactions in Movable Assets Act, 2017 is popularly also known as the Collateral Registry Act.

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