This initiative aims to assist the sub-sector in the identification, assessment, as well as mitigation of money laundering and terrorist financing (ML/TF) risks in their operations. These risks may arise from customers, product and services, business practices or delivery methods, jurisdictions or geographical presence.
The CBN said when carrying out its supervisory activities that it observed OFIs have uneven challenges in the implementation of effective risk-based approach to AML/CFT programme that meets the standard of regulatory requirements.
The application of the Guidance Note is expected to assist the institutions take appropriate measures to review, monitor, and mitigate the identified risk. FIs could use more stringent tools to identify and assess ML/TF risks in their companies. However, irrespective of the method adopted, the risk assessment should be updated regularly, the CBN said.
The central bank explained that the Guidance Note does not constitute secondary regulation or new regulatory requirements. It is intended to assist OFIs to comply with measures contained in the CBN AML/CFT Regulations, 2013 (as amended) and other relevant AML/CFT laws.
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