IMF warning: eNaira might be used for money laundering and terrorism financing

Monday 21 February 2022 14:27 CET | News

The ‘Nigeria Staff Report for the 2021 Article IV Consultation’ International Monetary Fund (IMF) Report has announced that Nigeria’s digital currency, eNaira, could be used for illicit purposes.

The digital currency issued and regulated by the Central Bank of Nigeria was launched in October 2021 as one of the first of its kind in the world and was designed to promote financial inclusion. However, the IMF expressed concerns regarding the currency’s trajectory in the cross-border economy and highlighted the potential risks of using eNaira, including cyber security and bank funding.

The Central Bank Digital Currency (CBDC) eNaira could be used for funding cross-border money laundering and terrorism, as there are certain cyber risks associated with eNaira transactions.

The IMF encouraged the African country to improve its anti-corruption and governance efforts, as well as strengthen its AML regulation as to not become a safe haven for tax evasion and financial terrorists. 

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Keywords: central bank, AML, financial crime, CBDC, digital currency, cross-border ecommerce, corruption, online security
Categories: Fraud & Financial Crime
Countries: Nigeria
This article is part of category

Fraud & Financial Crime

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