Extraordinary nr Federal Republic of N me Official Gazette geria . No. 68 Lagos - 3rd September, 2013 Vol. 100 Government Notice No. 161 “The following is published as Supplement to this Gamerte Sie, Sheri Tile Page 16 Central Bank of Nigeria (Anti-money Laundering and Combating the Financing of Terrorism in Banks and Other Financial Institutions in Nigeria) Regulations, 2013, == B227-B307 ‘and Published by FGP 98/920136.200 (OL. 71) Annual Subser | January, 2013 ie Local : 825,500.09 Overseas : H37,500.00 [Surface Mail]$46,500 00 [Sezend Clas Aix Maill Present issue 42.50.00 per copy. Subserlbers whe wish obtain Giccte after ist wary should apply tothe Federal Government Printsr, afi Lagos for amended SubscriptionsB27 CENTRALBANK OF NIGERIA (ANTI-MONEY LAUNDERINGAND COMBATING THE FINANCING OF TERRORISM IN BANKSAND OTHER FINANCIADINSTITUTIONS IN NIGERIA) REGULATIONS, 2013 Amnancrstasr oF Risctt.amons Regulation Pruy IOnwenes, Score AND ARPLICATONS 1. Objective 2. Seope 3. Application Parr IAntieMeney Launperine ap Compstinc tiie FINANGNG oF Tranouisht Dar crivrs 4, AMLICFT Institutional Policy Framework 5. Risk Assessment 6. Risk Mitigation 7. Designation and Duties of AML/CFT Compliance Officer & Co-operation with Competent Authorities. Paki I1I—Orrenens, Measuis avo Saverions 9. Scope of Offences 10, Tetvorism Financing Offences 11. Targeted Financial Sanctions Related to Terrorism Financing and Proliferation 12. Limitation of Secrecy and Confidentiality Laws Parr IV—Cuistontie Due Distance, Hianet Riss CUSTOMERS ‘ano ACHIVITES OF PoutTicaLty Exvosen Prisoxs 13, Customer Due Diligence (*CDD") Measures 14. Identification and Verification of Customers 15. Verification of Benefictal Ownership 16 Application of Enhanced Due Diligence to Higher Risk Customers sand Activities 17, Attention to High Risk CountriesBIR 18, 19, 20. 2 22, 23. 24 28 26, 20. 28, 29. 30. 31 22 4s 46 Politically Exposed Person (PEP) ro New Technologies and Non face-to-face Transactions: Money or Value Transfer (MVT) Services jordér and Correspondent Banking Foreign Branches and Subsidiories Wire Transfers ‘Simplified Due Diligence Applicable to Lower Risk Customers, Transactions or Products Timing of Verification Existing Customers Failure te Complete COD Reliance on intermediacies and Third Parties on CDD Fut Pare V—Marsrenaner or Reconps Maintenance of Records on Transactions Attention on Complex and Unusual Large Transactions Suspicious Transeetion Monitoring Procedure for the Monitoring anid Reporting of Suspicious Trarsect Part VI Monrroneve, Ivreanas, Cowmnois, Prosiainions, AND SANCTIONS Iniernal Controls, Compliance and Audit Sanctions and Penalties for Non-Compliance Prohibition of Numbered or Anonymous Accounts. Accounts in Fictitious Namesand Shell Banks Other Forms of Reporting AMLICFT Employee-Education and Trai Monitoring of Employee Conduct Protection of Staff wine Report Violations Additional Areas of AML/CET Risks Additional Procedures and Mitigants. Testing for the Adequacy of the AMLICFT Compliance Formal Board Approval of the AMLICET Compliance (Culture of Compliance Parr VII—GLinance ow Know Your Custouer (KC) ‘Three Tiered KYE Requiréments. Duty to Obtain Identification Evidence71 B 229 Nature and Level ofthe Business Application of Commercial Judgment Identification Factors to Consider in Identification Time for Verification of identity Verification of Wdeniity Exceptions ‘Additional Verification Requirements Ieeatification of Dirwotors and other Si Joint Account Holders Verification of Identity for High Risk Business Duty to Keep Watch of Significant Changes in Nature of Business Verification of Identity of Person Providing Punds for Trust ws Schemes and Investments in Third Parties’ Names Personal Pension Seheies Timing of Identification Requirements Consequence of Failure o Provide Satisfactory Identification Evidence Identification Procecures ‘Now Business for Existing Customers Ceatiication of Ldenifcation Documents Recording identification Evidence Concession in Respect of Payment Made hy Post “Tenmn Deposit Account ("TDA’) Investment Funds Paar VII—Groreat hsoetnton Establishing Identity Private individuals — General Information Prive Individuols Resident in Nigeria Documenting Evidence of Identity Physical Checks on Private Individuals Resident in Nigetia Electronic Checks Pager IXFisavcint Excision FoR TH SoeiAH} Of Finanenuin’ Dsabvanracinn APrticants “Finamedal Exclusion” for the Socially or Financially Disadvantaged Applicants Resident in NigeriaB 230 TB. 79. 80. al. 82 Ree 56. 7 88. 89. 90, ou 92, 93, 94, 95, Private Individuals not Resident in Nigeria Non face: to-face Identification Refugees or Avylum Seekers Students and Minors (Quasi Corporate Customers Past X—Thst, Pouiey, Recraey xb PayMenr oF Pins ‘Trust, Nominees and Fidueiaries Offshore Trusts ‘Conventionai Family and Absolute Nigetian Trusts Receipt und Payment of Funds Identification of new Trustees Life Policies Placed in Trust Powers of Attorney and Third Party Mandates Paer 2X1—Exsexrroestur, Clint Accounts, U2 AN} CORPORATE ORGANIZATIONS sneonnonrin Exocutorship Accounts *Clivay Accounts” Opened By Professional Intermediaries, Un-incorporated Business or Partnership Limited Lisbility Partnership Pure Corporate Customers The Identity of a Comporate Company Non fave-to-fuce Business Public Registered Companies Privaie Companies Higher Risk Business Apaticant Higher Risk Business Relating to Private Companies Foreign Financial Institutions Bureau DeChange Desighated Non-Financial Businesses and Professions (DNFBPs) Occupational Pension Schemes Registered Charity Organizations Religious Organizations (ROs) Taree - ‘Tiers of Government and Parsstatals Foreign Corsulateslo9. ho. ut 2 uns. na. us, 16. 17. 18 9. 120. Wake 122, 123, B231 Intermediaries ar other Third Parties to Verify Identity or to Introduce Business Pre X1I—Inmonucrows, ArrLicastons ant Forman Inte eonanics Iniroductions from Authorized Financial Intermediaries Written Applications ‘on- Written Application Foreign Intexmediasies Corporate Group Introduetions Business Conducted by Agents Syndicated Lending Correspondent Relationship Acquisition of One Financial Institution and Business by Another Vulnerability of Receiving Bankers and Agents Categories of Persons to be Identified Applications Received through Brokers Applications Receive from Foteign Brokers Multiple Farsily Applications Pag XUI—LINKED TRANSACTIONS, FORGION ACCOLNES AND Iyvesrent Linked Transactions Foreign Domiciliary Account (FDA) Safe Custody and Safety Deposit Boxes Customer's Identity Not Property Obusined Exemption from Identification Procedures Ouc-eff Cash Transaction, Remittances and Wire Transfers Re-investment of Income Amendment or Revocation of these Regulations. Intexpretatic Ciation SCHEDULESot od. . ee et I A st . wi ‘tot sen et tm Tm eet ented i H | | « 8 ” - | aSe. No, 16 of 2013 CENTRALBANK OF NIGERIA (ANTI MONEY LAUNDERINGAND COMBATING THE FINANCING OF TERRORISM IN BANKS AND OTHER, FINANCIAL INSTITUTIONS INNIGERIA) REGULATIONS, 2013, In exercise wf the powrers conferred upon me hy the provisions of section S1(1) of the Banks and Other Financial Institutions Act, 2004 and all other powers enabling me im that behalf, I, Sanuse Lasnoo Sans, Governor of the Central Baak of Nigeria, make Regulations— [29th Angust, 2013 ] Pans I—Onsicnives, Score AND APHICATONS 1. The objectives of these Regulations are to— (a) provide Anti-Money Laundering and Combating the Financing of ‘Tesrorism (“AMLiCFT") compliance guidelines for financial institutions under the reguletory purview of the Cemiral Bank of Nigeria (*CBN")as required by relevant ptovisions of the Money Laundering (Prohibition) Act, 2011 (as amended), the Terrorism Prevention Act, 2011 (@samended) and other relevant Inws and Regulations ; (0) enable the CBN 10 diligently enforce AMLICFT measures and ensure effective compliance by financial institutions ; and (e) provide guidance on Know Your Customer (°K YC”) measures to assist financial institutions in the implementation of these Regulations. 2.—(1) These Regulations cover the relevant provisions of the Money Laundering (Prohibition) Act, 201 1 (as amended). the Terrorism Prevention Act, 2011 (as amended) and sny other relevant laws or Regulations. (2) These Regulations cover — (0) the key areas of Anti-Money Laundering and Combating the Financing of Terrorism (AMLICET} Policy ; (8) development of Compliance Unit and function ; (c) Compliance Officer designation and daties : (d) the requirement to co-operate with the competent or supervisory authorities : (6) conduct of Customer Due Diligence ; (/)morivoring ane filing of suspicTous iransections o the Nigerian Financial Intelligence Unit (*NFIU) and other reporting requirements; (g) reposting tequitements ; (A) record keeping : and (J AMLICET employes training, 3. These Regulations shall apply’to banks and other financial institutions in Nigeria within the regulatory purview of the Central 3ank of Nigeria, B 233 Cominenie: ment Objective Scope ApplicationB34 Pau LIAN Mowe Laintnine anns Cott NG rn: FINANCING fF THRRORISH Dawucretsy ANLICET 4-{1) A financial institution shall adopt policies stating its commitment io fisitutions! —egmply with Anti-Money Leundering (‘AML") and Combating Financing of Policy Harroriem (CPT? obligations under subsisting laws, ;egulations and regulatory Framemeshs — gipeerives and to-actively prevent any transection that otherw se faelitates eriminal activities, money laundering or terrorism. (2) A Financial institution shall formulate and implement inie-nal controls and other procedures to deter criminals from using its facilities for money laundering and terrorist financing. {G) Financial Institutions shall adopt arish-besed approweh in the idéntifisetion and maragement of theit AMLICF risks in line with the requirements of these Regulations (4) Financial Institusions shall comply’ prompzly with requests made pursuant tocurrent AML/CFT legislations and provide information to the Central Bank of Nigeria (*CBN"), Nigeria Financial Intelligence Unit (°NFIU") and other competent authorities. 45) Financial Institutions shall not in any way inhibit the implementation of the provisions oF these Regelations and shall co-operate with the regulators andl law enforcement agencies in the implementation of a robust AMLICFT regime in Nigeria (6) Financial institutions shall render statutory reports to appropriate avihocities as cequired by law and shall guard against any act that will cause & customer or elient ta avoid compliance with AMLICFT Legisiations. (9) Financial istiuations shall identify, review and reeotd other areas of potential money laundering and tertorist Financing risks not covered by these Regulations and report same lo the appropriate authorities. (8) Financial institutions shall refleet AMLICFT policies and procedures in their strategie policies. (0) Financial insttotions shall conduct on-going Due Diligence and where aprtopriate, enhanced Due Diligence onall busines relationships and shall abtzin jnfommation on the purpose and intended nature of the business relationship of their potential customers (10) Financial institutions shall ensure that their employees, agents and ‘cxhers doing business with them, clearly understand the AMLICFT programme, Risk 5, A financial institution shall— Seen {a} take appropriate steps to identify, assess and undersiand ts Money Laundering (ML!) and the Finaneing of Tersorism ('FT") risks for customess, countries or geographic arees of fis operations, products, services and delivery channels(6) document its risk assessments profile ; [c) considerall relevant risk factors before determining the overall level of risk and the appropriate Level and type of mitigation to be applied; (c) keep the assessments in this regulaticin up to date sand (c) have the appropriate mechanisms to provide cisk asseiaments reports to regulatory, supervisary and competent authorities, and Self-Regulatory Organizations (*SROs') 6, A financial institution shall — (a) have policies, controls and procedures whieh ane approved hy its beard ‘of directors to enable it manaye und mitigate the risks that have been identisied (sither by the eourtry or by the Finaneial institution) (4) monitor the imptemeatation of the controls inthis regulation and enhance thom, whore necessary ; and (0) take enhanced measures co man risks ure identified ane! mitigate the risks where higher 7-11) A financial institution shall designate its A ML/CFT Chief Compliance Officer with the relevant competence, authority and independence to implement the institution's AML/CFT compliance programme. (2) The AMLICET Complistice Officer shall be appointed at management {evel and shall report directly to the Board on all matters under these Regulations. (3) The duties of the AMLICFT Compliance Oiieer referred to. in sub- regulation (1) of this regulation shall inelude— a) developing an AML/CFT Compliance Pr (1) receiving and vetting suspicious transition reports Hom staf; (e) filing Suspicious Transtetion Reports (ST RS") with the NFIU (a) filingother regulacory retumns with the CBN and other relevant regulatory and supervisory authorities ; il” reports tothe CBN ancl NFIU, where ne (rendering * compliance : (f ensuring that the financial institution's compliance programme is implemented; (g) co-ordinating the tsining of stat in AMLICFT awareness, detection methods and ceporting requisements : and (0) serving both as a liaison officer between his institution. the CBN and NFIU and a pointof-contact forall employees cn issues relating to money laundering und terrorist financing. ary toensure B235 Designation and Dutics of aML! cer Conn onzeB 236 co- operation wath Compatent Avice. Scape or Offences 1) financial institution shall give an undertaking thet itshall comply prompily with all the recuests made pursuant to the provisions of relevant AML! CET laws and Regulations and provide al! requested information to the CBN, NFIU and other competert authorities. (2) A finencial institution's procedures for responding to authorized requests for information on ML and FT shall meet the following — (1 searching immediately the financial institution's records to determine whether it maintains or has maintained any account for, or has engaged ix any travsection with any individual, enfty or organization named in the request (b) reporting promptly to the requesting authority the outcome of the seareh ; and c) protecting the security and confidentiality of such requests Paar I]—Oevences, Measuies AND SANCTIONS 9.—(1) A financial instiuuion shall identify and file suspicious transection reports 10 the NFIU, where funds, assets or property are suspected (0 have teen derived from any of the following criminal activities— (o) participation in an organized eximinal group and racketeering (6) terrorism, ineluding tertorist financing + (6) trafficking in persons and migrant smuggtings : (a) sexual exploitation, including soxval exploitation of children: (@ illicic wafficking in narcotic dnigs and paychouopic substances + wil (g) illicit trafficking in stolen and other goods; it arms trafficking + (@) corruption (bribery ; () fied ¢ (&) currency counterfeitin (O counterfeiting and piracy of peoduets ; (m=) environmental erime + (rn) murder § {o) gtievous bodily injury 5 (p) kidnapping, illegal restrsintand hostage-taking + {g) robbery or theft ; () smuggling, including smuggling done in relation to customs and excise fies and taxes) : 3) tax crimes, related to direct taxes and indirect taxes ¢(0 extortion 5 (a) (©) piraeyss ((w) Insider ding and market mianiputation, oF (x) any other predivate offence under the Money Laundering (Prohibition) ‘Act, 2011 (as amended) and the Tertorism Prevention Aci 2011 (asamended), 10.41) Terrorism financing offences extend to any person or entity who solicits, acquires, provides. collects, receives, possesses or makes available funds, property or other services by any means «© (errorisis or verrorist orwanizations, direetly oc indiveetly with the intention orknow ledge orhaving.uasonable grounds to believe that such funds or property shall be used in full ar ie past to carry out a terrorist act by a terrorist or terrorist organization in line with section | af the ‘Tervorisin (Prevention) Act, 2011 (as amended), (2) Under these Regulations, cevorism finansing offences are prodivste offences for money’ laundering and shall apply regardless of whether the person cor entity alleged to have commiuted the offences in the same country aradifierer coumtry from the one in which the terrorist oF terrorist oryanization is located of the terrorist act oecurred or will occur. 1111) A Financial instinution shall report co the NEIL any assets frozen or actions taken in compliance with the prohibition requirements of the relevant United Nations Security Council Resolutions C(UNSCRs’) on tirorism, financing of proliferation of weapons af mass destruction, any Future successor resolutions and the Terrorism Prevention (Freezing of iniemational Terrorist Funds and Other Related Issues) Regulation, 2613, and any amendhnents that may be reflected by the competent authorities, (2) The reports in sub-regulation (|) of this regulation shall inelude all transactions involving attempted and concluded! transactions in camptiance with the Money Leundesing (Prohibition) Act, 201 (asamended), Terrorism (Prohibition) ‘Act, 201 (as amended) and the Terrorism Prevention (Freezing of International Terrorist Funds and Other Related Issues) Regulation, 2013, and any amendments that may be reflected by the competent autiorities (3) The administrative sanctions contained in Schedule Ito these Regulations co in the ‘Tetrorism Prevention (Freezing of International Terrorist Funls and Other Relaied Measures) Regulations, 2013 shall be imposed by the CBN on institutions under its regulatory purview. 121) Financial institutions’ secrecy and confidentiality laws shall not in any way, be used to inhibi the implementation of the requirements of these Regulations hiaving regard to the provisions of section 38 of Economic and Financial Crimes Commission Act, 2004; seetion 13 of Money Laundering (Prohibition) ‘Act, 2011 (as Amended) and section 33 of the CBN Act, 2007, B237 evox Fencing Offences, teeted Financial Sanetions Terrorism Fhnascing and Prolif CenfdeiiyB 238 Customer Due Diligeree (coo) (2) The relevant lavis cited in sub-regulation (1) of this regulation have tiven the relevant authorities the powers required to access information to properly perform their functions in combasing money laundering and financing of terrism, the sharing of information bewveen corapetent authorities ether damestically or intematicnaily, and the sharing of information between financial institutions rresessary or 8s may be required, (2) Banking seerecy or preservation of eustomer confidentiality shall noc be invoked a8 a ground for objecting to the measures set out in these Regulations or for refusing to be 2 witness to facts likely to constitute an offence under these ‘Regulations, the relevant provisions of the Money Laundering (Prohibition) Act 2011 (es amended), the Terrorism Prevention Act, 2011 (zs amended) ancl any ‘other relevant subsisting laws or Regulations, Pagr 1V—Cusiovier Dur DitiaeNce, Hionnie Risk Cusrosuns anb AcTiviris oF Pot!TicaLty Exrostin PPRSoNs 13.—{1) A financial institution shall undertake Customer Due Diligence (CCDD") measures whien— (0) business relationships are established : (@)carrying out eceasional transuctions above the applicable and designated threshold of US81,000 or its equivalent in other currencies or as may be determined by the CBN from time to time, including where the transaction is carried out in single operetion oF several operations thot appear to be linked : (c) earying out occasional transactions that arc wire transfers, including those applicable 19 cross-border and domestic transfers between financial institutions and when credit or debit cards are used 2s a payment system to effect money transfer ; (u) there isa suspicion of money laundering or terrorist financing, reverdless of any exemptions or any other thresholds referred to in these Regulations : or {@) there are doubts on the veracity or adequacy of previously obtained customer identification data, (2) The measures in parageaphs (a), (6) and (¢) of sub-regulation (1) ofthis regulation, shall not apply to payments in respect of — (0 any transfer flowing fiom a transection carried out using a ereeit or debit card so long as the eredit or debit card mmber accompanying such transfers Flow front the transactions such as withdrawals (rom a bank acount through en ATM machine, cash advances from a credit cerd or payment for goods. (i Inter-firancial institution transfers and setiternents where doth the originator-person and the beneficial-person are financial institutions acting en their own beball.(3) Financial institutions, must not after obtaining all the necessary documents and being so satisfied, repeatedly perform identification and verification exercise every time a customer condvets a transaction except there is @ suspicion ‘that the previously obtained information is not complete or hss changed. 14—{1) A Financial institution shall identify their customers, whether Permanent or occasional, natural er legal persons, or legal arrengements, and. verify the customers’ identities using reliable, independently sourced documents, data or information, (2)A financial institution shall carry out the full ange ofthe CDD measures contained in these Regulations, the relevant provisions of the Money Laundering, (Prohibition) Act, 2011 (as amended), ane any other relevant laws or Regulations, (3) Financial institutions shall apply the COD measures on a risk-sensitive basis, (4) Types of customer information o be obtained and identification data to ‘be used to verify the information are contained in Sehedule Il tathese Regulations, (5) Where the customers a legal person or a legel arrangement, the nancial institution shall — (a) identity any person purporting o have been authorized to act on behalf (of that customer by obtaining evidence of the cuscomer"s identity and verifying the identity ofthe authorized pesson ; and (2) identify ond verify the legal stays of the legal person or legal ment by obtaining proof of ineorporstion from the Corporate AfTairs atra Commission ('CAC’) ot similar evidence of establishment or existence and any other relevant information, 18—{1) A financial institution shall identify and take reasonable steps 1o verify the identity of a beneficial-owner, using relevant information or data obtained from a reliable source to satisfy ise that it knows who the beneficial. owner is through methods including — (2) for legal persons (0) identifying and verifying the natural persons, whete thay exist, that have ultimete controlling ownership imerestia legal person, takinginto cognizance the fact tha: ownership interests can be so diversified that there may be no natural persons (whether acting alone or with others) exercising, control of the legal person or arrangement through ownership ; (to the extent that i is manifestly clear under sub-peragraph (/) ofthis paragraph tht the persons with the controlling ownership interstarethe beneficial owners oF where no natural person exerts control through ownership interests, ‘demtify and verify the naturel persons, wihere they enisi, exercising control of the legal person or arrangement through other means ; and B239 demifica- tion ard verification of identity or Customers. Verification ‘of Benefia! ‘Ownershia,B 240 (where a rata person is ot identified under sub-paragraph (er) of this paragraph, Financial institutions shall identify and take ressonable measures 10 verify the Identity ofthe relevant natural person who holds senior rranagement position in the legal person. (@) for legal arangernenis—such as trust arrangement, financial institutions shalt identify and verify the identity of the settler, the trustee. the protector there they exist, the beneficiaries or class of beneficiaries, and any oxher natural person exercising ultimate or effective control ever the tus! including throngh a chain of control or ownership 5 and (c) for other types of legal arrangements, the finencial institutions shall identity and verily persons Th equivalent or similar positions. (2) Finaneial institutions shall in wspect ofall customers, determine whethes ‘a customer is geting on behalf of another person or not and where the eustemer is noting on behalf of another person, take reasonable steps to obtain sufficient ‘dentification-data and verify the identity of the other person (3) A financial institution shall take reasonable measures in respect of ceustomers that are legal petsons or legal arrengements to— (0) understand the ownership andl control structure of such a customer ; and (b) determine the natural persons that ultimately own or contro! the ceustomer. (4) Inthe exertise of its responsibility under this regulation, 2 financial in&itution shall take into account that aatural persons include those persons who exercise ultimete or effective coniral over the legal person or arrangement ‘and factors to be taken into consideration (a satisfectorily perform this funetion include— (a) for companies - the natural persons shall owa the controlling interests ‘and comprise the tind and management of the company ; end (6) for trusis— the natural persons shall be the setilo, the trustee oF person exercising effective control over the trust and the beneficiaries (5) Where a customer or an owner of the controlling interest isa company sisted on a stock exchange and subject 1 disclosure requiements (sither by stock xchange ules oF by law or other enforceable means) which impose requirements to ensure edequate tranapureney of beneficial ownership, oF s a majority-owned subsidiary of such # company, itis not necessary 1 idenlly ard verify the identity of any shareholder o* beneficial owner of the company (6) The relevant identification data referted to inthe foregoing regulation ray be abtained from a public register, the customer and otter reliable sources, nd for this purpese, ownership of 596 interest or more in « company isapplicable(7) A ‘Thai institution stall obtain infomation on the purpose and intended nature of the business relatioaship of its potential customers, (S14 financial institution shall conduct on-going Que Diligence on a business relationship, (9) The conduct of on-going Due Diligence includes scrutinizing the Wansactions undertaken by the customer throughout the course of the financisl institution und customer selationship to easure thal the Irensactions being Conducted are consistent with the financial institution's knowledge-af the customer hfs business, risk profiles and the source of funds. (10) 4 Firanicia! institucion shall ensure that documents, data o# information collated under the DD process are kept up-uy-date and relevant by underiakin, ‘exular periodie reviews of existing records, particulunly the records in tespect of higher-risk business-retationships or customer celeuories. 16. A financial institution ¢hall perform Enbanced Due Ditigence far high: visk customers. pusiness relationship or transactions includ (a) non-resident custom () privare banking customers (©) legal petsons or legal arrangements such ss trusts that are personal: assets-holding vehicles (companies that ave nominee-shareholeers or shares in bearer form (@) Politically Exposed Persons (*PEPs"), cross-border baciking endl business relationsitips, amongst ethers (6 cross-border banking ond business relationships, and (2) any other businesses, activities or professionals as may be prescribed by regulstory. supervisory or competent authorities, 1741) A financial institution shall give special attention to business’ rehitionships aud transactions with persons, including legal persons ‘und other nancial institutions, from countries which do not of insufficiently apply the FATF recommendations, (2) A financial institution shall report transactions that heve no apparent eoonomic or visible tawfil purpose to competent authorities with the backwround «and purpose of such tansuetions as fer as possible, examined and weiuten findings made available w assist competent authorities. (5) fltanciat institution that does 2 business with foreign institutions whieh do not apply the provisions of FATE recommendations shal take measures, including the following (a) steingent requirements for identifying clients and enhancement of advisories, including jurisdiction-specific financial advisories to financial institutions for identification of the beneficial owners before business relationships are established with individuals or companies trom that jurisdiction : B241 Application fo Enkancod ue Diligencesn, Higher Risk Costomers an Activity Abestion ta Nighi CountiesB 242 Politically Expand Persons (Per (b) enhance relevant reportiig mechanisms or systematic reporting of financial transactions on the basis that financial transactions wilh such counties fare mote likely to be suspicion (©) in considering requests for approving the establishment of subsidiaries ‘or branches or representative offices of Financial institaticns. i countries appiving the counter measure shall take into account the fact that the relevant Financial inscitution is from a country that does not have adequate AMLICFT systeins ; and (i) warn that non-financial seotor businesses that transact with natural or legal persons within that country might run the risk of money launderi limiting business relationships or financiet ansactions with the identifi ‘couniry oF persons i that country. 1841) Politically Exposed Persons (PEPS') are individuals who are or have been entrusted with prominent public functions in Nigeria or in Foreign counties, and people or entities associated with them ane! inelude (a) Heads of State or Government : (b) State Governors (c) Local Goverment Chairmen s {ch senior politicians, (@) senior goverment officials () judicial or military officials (g) senior execu ‘of siate owned corporations 5 (#) important political party officials i) family members or close associates of PERS + and (i) members of royal famil (2) PEPs also include persons who are or have been entrusted with prominent function by an international organization, including members ef senioe management including diteetors, deputy direstors and members of the board or ‘equivalent functions other than middle ranking or more junier individuals, {3) Financial institutions shall in addition to performing CD measures, to putin place appropriate risk management systems to determine whether potential customer of existing customer or the benelicial-owner is a PEP. (4) Financial insciutions shall obiain senior management approval before they establish business relationships with a PEP and shall render man returns om all transaetions with PEPSto the CBN and NFIL. (5) Where a customer hes been accepred or has on engoing relationship with a Grencial institution and che customer or beneficial-owres is subsequectly Found t6 be or becomes @ PEP. the financial institution shull obeatn senior ‘management approval to continue the business relationship,(0) A financial institution shall take reesonable nieasures to establish the Sores of wealth and the source of funds of customers and beneficial-owners identified as PEPs, (7) A financial institution that isin busivess relationship with a PEP shall ‘oncluct enhanced and on-going monitoring of that relationship snd in the event of any transaction that is abnormal, a firaneial insiution Shall flag the acecunt ‘nd report the transaction immediately co the NPTU as.a suspicious transaction 19—1) Por eross-border and correspondent banking and other similar reletiogships, a financial institution shall, in addition io performing thé normal COD measures, lake the following measures («) gather sufficient information about a respondent institution to understand fully the najue ofits business and deteomine from publicly aveitable information, the reputation of the institution and he quality ofsupervision, including whether oF not it has been subject 19 a money Ieundering. or terrorist financing investigation or regulatory action ; (6) assess the respondent institution's AMLICFT eontrels and ascertain that they are in compliance with FATF stanitards : {c) obtain approval from senior management hefore establishing correspondent relotionships ; ancl (ch document the respective AMLICFT fesponsibilities of the respondent institution, (2) Wherea correspondent relationship involves the maintenance of payable vecoumt, the fascial institution shall be satistied that {a) its customer (the respondent bank or financial institution) has performed the Hotel CDD obligations on its customers that have ginect access 0 the Secounts oF the correspondent Financial institution : and (0) the respondent financial institution is able w provide relevant customer ‘dentification dats upon request to the eorresponclent financial instit 20—4}) A financial institution shall identity and assess the money laundering ‘or terrorist linancing risks that may arise in relation to the development of new products and new business practices (including new delivery mechanisms) and the use of new or developing technologies far both new and pre-existing prockicte (2) Financial institutions are to ensure that any risis assessment to be undertaken is carried out prioeto the launch of theriew products, Eusiness practices or the use of new or developing technologies are to be documented and appropriate measures laken to manage and mitigate such risks, (3) financial institution stall have policies ind peosedures in place to wnddress any specific risk associated with non face-to-face business relationships oF B23 Cross Border ane Corrspen New Teeteylegies and Non freetotice TransetoesB 244 Money or Nalie ranseer (ar) Seles, even Amaches and Subsiciovic. (4) The policies and procedures requieed to be taken shall be epplicd szutomatically when establishing customer relationships anil condicting on-going Due Diligence and measures for managing the risks are to fschude spec effective CID procedures that apply 1 non face-to-face astomers. 21.—(1) All natura snd leyal persons performing Money or Value transfer Service (/MVTS operators all be license by the Banking and Payment Deparment of the CBN and stall besubject to ths provisions ofthese Regulations, the relevant provisions of the Money’ Laundering (Prohibition) Act, 2011 (as amended), he Terrorism Prevention Act, 20L| (asamended) and any other rekevant laws or Regulations. (2) MVTS Operators shall maintain » curreat list of theie agents and render quarterly retums w the CBN andl the NEU (3) In addition to the requirement specified in this reyulation, MVTS ‘Operstors shall gother end maintain sufficient information about theirs correspondent operators or any ather operators of instiiulions they are oF likely to do business with ents and (ay Mv (a) assess their agents’ and correspondent operators’ AML/CFT controls and asceriains that such controls are adequate and effective Operators shall — (4) obtain approval fram the CBN before establishing new correspondent relationships ; and (e) document and maintain u checklist of the respective AMLICET. responsibilities of each of their agents and correspondent operators, 22.{|) A financial institution shall ensure that its foreign branches and subsidiaries observe AMLCFT measures consistent with the provisions of these Regulations and apply the measures to the extent that the ioeul or host countrys laws and Regulations pertait (2) Financial institutions shall ensure that the principle seferted t© in sub- regulation (1) of this regulation is observed by their branches and subsidio countries which do not orinsutfiisntly apply’therequirements of these Regulations (3) Where the minimam AML/CFT requitements contained in these Regulations and those of the hesi country differ, branches end subsidiaries of Nigerian financial institutions in the host counry shall apply the h lard provided in these Regulations and such standards shall be applied to the extent that the host country’s laws, regulations or other measures permit. er st (4) A financial institation shall inform the CBN in writing when theie foreign branches of subsidiaries ane tmable to observe the appropriate AML/CFT measures where they ate prohibited to observe such measures by the hast country's laws, regulations or other measur(5) Finaneial institutions shall subject to the AMLICFT principles contained in these Regulations, spply consistently the CDD measures at their group levels, taking into consideration the wetivity of the customer with the various branches and subsidizries 23.1 Forevery wire tansier of USS 1,000.0¢ more, the ordeting financial institution shall obtain and maintain the following information relating to the originator of the wire transier— (a) the ame oF the oviginaior (6) the originator’s account umber (oF & unique reference number where no account number exists) y and (e) the ariginater’s address (which address may be substituted with a national identity number), (2) For every wire transfer of US§ 1,000 or more, the ordering financial institution shall obtain and verily the identity of the originator in accordance with the CDD requirements contained in these Regulations (3) Por cross-border wire transfers of USS 1,000 oF more, the ordering financial institution shall include the full originator information in sub-regulation (1) of this xegulation in the message or the payment form accompanying the wire rane ee 4) Whete however, several individual cross-border wiee tainsfers of U: 1,000 or moze om a single originator are hundled in a bateh-file for transmission to beneficiaries in another country, the ordering financial institution should only include the originator’s account number ee unique idcmiifier on each indivicual cress-border wire transfer, provided that the batch-file (in which the individual fansfers are batched) contains {ill originator information that is filly waeeable within the recipient coun For every domestic wire transfer, ths ordetiag Finaneiai institution shall («) include the full originator information in the message or the peyment form accompanying the wire ansfer ; or (h) include only the originator the messave or payenent Foam. ‘count number ora uni identifies, within (6) The inclusion of the originator’s aecount number or the originator’ Uwigue identifier alone should he permitted by a Ginancial institution only where the originater’y ful information can be made available to the bene ieiary financial institution and to the sppropriate authorities within thice business day's ofeeeiving she request (9) Each intermediary and ber chain shall ensure that all the originator’s inforration that aecomipunie lronsfer is transmitted with the transfer eficiary financial institution in the payment wire B 245 Wire IronstinsB 246 Simplified Dus Difizenew Anplicable 8 Low isk Customers Trensictiens Produets (8) Where technieal limitations prevent the full originator information accompanying a cross-border wire transter from being transmitted with a related sary time 19 adapt payment systenis}. ¢ record shall be Kepi for ive years by the reeciving intermediary Financial institution OF all the information rezeived from the ordering financial institution domestic wire transter (during the neces ficiaty's finaneial Institution shall adopt effective risk-based procedures for identifying are handling wire transfers that are not accompanied by complete originator’s information. (10) The Jack of complete originator’ information is considered as. fretor in assessing whetlier a wire transfer or related transactions ure suspicious, (11) Financial intitations shall file # Suspicious Transaction Report ant wire {transfers with incomplete originator’s information to the NFU. (12)'The beneficiary’s financial institution shail restrict oF even terminate its business relationship with the finaneial institutions that fil to meet the standards spveified in this regulation (13) Cross-border aud domestic transfers between finan, ‘not applicable 10 the following types of payments— ia institutions are (a) any wansfer that flows from a transaction carried out using a credit or debit card so long as the credit or debit card nurmbar aceompanies all iransters owing from the transaction, such as withdrawals trom a bank account through fan ATM machine, eash advances Gom a credit card or payments for goods ancl services, provided that where eredit or debi eards are used as payment gysiom to effect a money transfer the necessary information should be inelusled in the messave t and (5) transfers and settlements between financial instiuation where both the originator persortand the beneficiary person are finaneial institutions acting en their own behalf, 24.—(1) Where there ate low risks, financial institution shall apply reduced, cor simplified measures, (2) There are low risks in circumstances whe (2) the risk of money laundering or terrorist financing is lower (5) information on the itemtity of th a customer is publicly avatlable = or vistomer imu the benesletel owner of (e) adsquate checks and controls exist elsewhere tn the naticnal systems, (3) In circumstances of low-risk, financial institution shall apply the siuuplified or reduced CDD megsures when identifying snd verifying the identity of their castorners and the heneficisowners.(4) The circumstances whieh the simplified or reduced CBD measures refer to in sub-regulation (3) of this regulation are applicable include cases of (0) Pinan! institutions—provided they are subject to the requirements for the combat of money lsundering: and terrorist financing which are consistent with the provisions of these Reaulations nd are supervised for compliance with them () Public companies (listed en a stock exchange or similar situations) that are subject regulatory disclose requirerticals : («) Insurance policies for pension seheies where there #8 m0 surrender- value clause and the potiey cannot be used as collateral : and (#) a pension, superannuation or similar scheme that provides retire benefits to employees, whore contributions are mude by way of deduc from wages and the scheme rules do not pecmi! the assignment ofa member's interest unider the scheme, (5) Financia) institution shall not apply the simplified CDD measures toa {Ustomer where there is suspicion ef money laundering: or terrorist financing oF specific higherrisk scenariosand in such a eireumstanve, enhaneed Due Diligence is mandatory, (6) Financial institutions shall adopt CDD measures on a risk sensitivee basisand have regard torisk involved in the type of eustomer, procuet, remnsaction 9 the location oF the customer and were there is doubt; thay are gireeted 10 clarify with the CBN 25.11) A financial institution shall obtain and verify the identity of dhe ‘customer, bene ieial-owner and occasional customers before or during the course of establishing @ business relationship or conducting transactions tor them. (2) Finaneial institutions are permitted to complete the verification of the identity of the customer and benclieal owner following the establishment of the business relationship, only where— (o) this can take place sean as reasonably practicuble ; (A) it fy essential not to interrupt the normal business conduct of the customer in cases of non fice-to-fice business, securities transactions aid thers 5 oF (e) the money laundering risks can be effectively managed, (3) Where a customer is penmitted to utilize the business relationship prior to verification, financial institutions shall adopt, risk management procedures relevant to the conditions under whieh this may eeu, (4) The procedures contemplated under sub-regulation (3) of this regulation shall include @ st of measices such as— (2) limitation of the number. types or amount of transactions that may be performed ; and B 247 Tiiniowor ification,B28 [d) the monitoring of large ar complex transactions being carried outautside the expected norms for that type of relationship. Exist 26.—{)) A financial institution shall apply CDD requirements to existing Cistoines —gustomers on the basis of matedalicy and risk, and continue 10 conduct Due Diligence on such existing relationships at appropriate times, (2) The appropriate time to eonduet COD by financial itstitutions is where (a)a transaction of significant value takes place : (h) @ customer documentation standards change substantially : {(c) there is a material change in the way that the aecount is operated ; or (a) the institution becomes aware that it lacks suffieient information about (3) A financiol institution shal property identity the eustomer in accorcar he ctiteria contained in these Reguladions and the customer identification ‘records shall be made available to the AML/CFT compliance officer, uther appropriate stat? and competent authorities, Faitureto 27-41) A financial instivutn thet fits wo comply with dhe CDD measures complete pursuantto these Regulations shall coo, (2) not be permitted to open the account, commence business perform the wansaeiion ; and (A) be required fo render a Suspicious Transaction Report to the NFTU (2) The financial institution that has commenced the business relationship shall terminate the business relationship and tender Suspieious Transaction Reports tothe NEI, (3) Where, a financial institution suspects that transactions relate to money Jaunidoting or terrorist finaneing, during the establishment or course ofthe customer, relationship. or when conducting eceasional iransactions, it shall immeditely— (o) obtain and verity the idersity OF the customer and the beneficial owner, whether permanent or occasional, irrespective of any exemption or any designated threshold that mistht atheraise apply : and ition Report STR") to the NEIL without (4) render « Suspicious ‘Tran delay (4) Whevea financial institution suspects that a transaction relates to moriey laundering or terrorise financing and itbelievas that performing the CD process, shall tip-aif the customer. it shall (w) not pursue the CDD process, and ())file-an STR 1p che NFTU without delay.(5) A Tnane‘al institution shall ensure that ils employees are aware of, and sensitive to tne issues mentioned under this regulation, (6) Whien assessing risk, financial institution shall consider all the relevant isk factors before determining the level of overall risk and the appropriate level of mtigatin to be applied (7) Financial institutions are allowed to differentiate the. ‘extent of measures, depending on the type and level of risk for the various tisk factors ed neg Pumticuersitution they may— () apply the normal CDD for eusicmer acceptance measures: (0) enhanced CDD for on-gcing monitoring ; or (¢) apply any of the procedures as may be considered appropriate in the cireamstan 28.—{1) A financial ins EDD shall— lution that relies upon.a third party to conduct its {c) immediately obtain the necessity information conceining the property ‘hich has been laundered or which constitutes proceeds from instrumentalities {sedin or intended for use in the comission ef money laundering and financing of terorism or other relevant offences ; and () satisfy itself that copies: of identification data and other relevant documentation relating to the CDD requirements shall be made available fom he third party upon request without delay, (2) The Finaneia) institution shal saisfy itself that third party ies regulated and supervised institution and that it has measures in place to comply with ‘equiremenis of COD reliance on intermediaries and other thd parties on CDD a coninined in these Regulations. (G) Financial institutions relying on intermediaries or other thd parties who have no outsoursing, agency, business relationships, accounts or vansaetions with itor thes clients shall perform some of he elements ofthe COD process un the introduced business. (4) The criteria to be met in carzying the elements of the CDD process by ‘he Financial institution referred to in sub-regulation (3) ofthis regulation are to (2) immediately obtain trom the third perty the necessary information cconceming cermin elements of the CDD process ; (A) take adequate steps to satisfy itself that copies of identification data andl ‘other relevant documentation relating to CDD requirements shall be made ‘available from the third party upon request without delay (c) sotisfy themselves that the thitd party is regulated and supervised in ‘tecordance wit Core Principles of AML/CFT and has measurse in place to comply with the CDD requirements set out in these Regulations : and B 249 Rellanczon Interrmediae siesand Third Pardes on cop PunctionB 250 Masewerance of Records “Transactions, Auention ‘on Campion andunaval lage “Transactions, Swxpicions ‘Transaction Monitoring, (40) ensure thatadequate Know Your Cusiomer (*KYC") provisions are apalied othe third party in order to obtain account information for competent authorities (5) Notwithstanding the conditions spesitied in this regulation, the ultimate responsibility for customer identification and verification shall be with the financial institution relying on the third perty Paar V—MAINTINARCE OF RECORDS 29,—(1) A financial institution shall maintain all necessary records of transactions, both domesticand international for at least five years after completion of the eansaction ot such longer period as may be required by the CBN and NIFILI, provided that this requirement shall apply regardless of whether the account or business relationship is on-going or has been terminated, (2) The components of records of transaction to be malntained by fisancial institutions include the— (a) roeords of customer's and beneficiary's names, addresses ot other jdentisying information normally rezorded by the intermediary (0) neture and date of the transaction (c) type and amount of currency involved ; and {i type and identifvring number of any account involved in the transaction. 3) Finoncial institutions shell maintain records of the identification dots, account files and business correspondence for at least five years after the termination of an acount or business relationship or such longer period vs may be rexquired by the CBN and NPTU, (4) A finaneial institution shall ensure that all customer-transaciion records and information are available on a timely basis to the CBN and NFIU. 30.—{1) A financial institution shall pay special attention co all complex. unwately large transactions oF unusval partes of trensecsions that have re visfole economic or lawful purpose, {2)A financial iostication shell investigate suspicious transactions and report iis findings tothe NFIU immediately. in compliance with the provision of section 6(2){¢) of Money Laundering (Prohibition) Act, 2011 (as amended), {3) For the purpose of sub-regulation (1) of this regulation, complex or unusually fare tansaction’ er, ‘unusual pattern of transactions’ incluce significant transactions rélating Lo a relationship, transactions that execed certain. limits, very fagh account tumover inconsistent with the size of the balance or transuetions which fall outside the regular patieen of the account's activity. 31.—{1) Where # transaction— (a) involves a frequency which is unjustifiable or unreasonable + (4) is surrounded by conditions of unusual or unjustified complexity ; (oyappeats to have no economic justification or lew ful objective : or(cf in the opinion of the francial institution involves terrorist financing or is inconsistent with the known transection pattern of the account er business relationship, the transaction shall be deemed to be suspicious and the financial institution shal seek information from the customer as to the origin and destination of the find, the aim of the transaction and the identity of the beneficiary. 2) Where a financial institution suspects that the funds mentioned under sub-regulation (1) of this regulacion— (are decived from legal or illegal sources but are intended to be used for am act of termrism ; (&) are proceeds of a crime related to terrorist financing ; ot (c) belong to a porson, entity or organization considered 4s terrorists, it shall immediately and without delay report the matter to the NFIU and shell ‘not be Tiable for violation of the confidentiality rules and banking secrecy obligations for any lawful action taken in furtherance of this obligation (3) A financial instittion shall immediately and without delay :but not later then within 24 bours— (4) draw up a writen ceport containing ll relevant information on the transaction, together with the identity ofthe peineipal and where applicable, of the beneffciary or beneficiaries : (4) take appropriate action to prevent the hnundering of the proceeds of a crime, an illegal actor financing of terrorism ; and {(c)repott othe NFIU any suspicions transaetion, stating clearly the reasons for the suspicion and actions taken {4) The obligation on finaiicia] instiutions provided for in this regulation shall apply whether the transaction is completed or not. (G) A finencial institution that faitsto comply within the stipulated timeframe with the provisions of — (2) subsregtation (1) of tis euttion is Hable to 2 fre 091,000,000 for eech day the offence subsists ; or (b) subregulation (2) of this regulation is Tile to sanction as stipulated under the Tertosism (Prevention) Act, 201 (as amended), (6) Any person wino being a dirsetor or emmpleyee of a financial institution ‘wars orin any other way intimates the ow.,er ofthe funds involved in a suspicious (ausaction report, or who refrains from making the report as required is liable to 1 fine of not less than N10,000,000 or banned indefinitely or for a period of net less than 5 years from practicing his profession, B 251B 252 Progedune forthe Monitoring, and Repoting or Suspicious Trarwactios, (7) The ditectors, officers and employees of financial institutions who carry cut their duties in good faith shall not be liable to any eivi or criminal liability, or have any eriminal or civil proceedings brought against them by their customers 32.—(1) A financial instinution shell have @ written Policy Framework that guides and enables its staif to monitor, recognize and respond appropriately co suspicious transactions in addition to the list of Money Laundering “&ed Flags” provided for in the Thicd Schedule to these Regulations, (2) Bvery Financial institution shall appropriately designare an officeras the AMLICFT Compliance Offices to supervise the monitoring and reporting of terorist financing and suspicious wansections, aiong other duties, (3) Financial institutions shail be alert to the various pattems of conduct that are known to be suggestive of money laundering. and shall maintain and disseminate a checklist of such transactions to the retevant staff (4) When any staf ofa financial institution detecisany “red flag" or suspicious money laundering or terrorist financing activity, the institution shall promptly ingtituce a “Review Panel” under the supervision of the AML/CFT Compliance Officer and every action taken shall be recorded, (5) A financial institution and its staftshal! maintain confidentiality in respect of any investigation conducted in pursuance ofthese Regulations andany suspicious transtction report that may be filed with the NFIU consistent with the provision of the Money Laundering (Prohibition) Act, 2011 (as amended) and the Terrorism, (Prevention) Act, 2011 (as amended), and shall not sy anything that might “ip ‘off eny person or entity that is under suspicion of money laundering, (6) financial institution that suspects or has reason to suspect that funds are the proceeds of a criminal activity or are related to terrorist financing shall promptly report its suspicions to the NFIU. (2) All suspicious transactions, including attempted transsetions are to be reported regardless of the amount involved. (8) The requirement to report suspicious transactions applies regardless oF whether they are considered to involve tax matters or other matters. (8) Financial institutions, their directors, officers and employees whether permanent or temporary, are prohibited from disclosing the fact that a report of a ‘transaction shall be filed with the competent authorities, (Jo) Incompliance with the Terrorism (Prevention) Aci, 2011 (asamenced), financial institutions are also requiced to, forward to the NFIU without delay but not later than within 24 hours, reports of suspicious transactions relating to— (@) funds derived trom illegal or leyal sources are intended vo be used for any act of terrorism 5 (2) proceeds ofa crime related to terrorism financing ; or (0) proceeds belonging to a terrorist, terrorist entity or organization,Pater VI—Monnioxisa, INnuanal. Conntons, PRONUITIONS AND SANCTIONS 3311) A financial insttution shall establish and maintain internal procedures, policies and controls to prevent money ‘aundeting and financing of terrorism and to communicate these to their eimplayces. (2) The procedures, policies and controls established by financial institution shall cover operational matters including the CDD, record retention, the detection of unusual and suspicious eunsactions and the reporting obligation, (3) The AMLICET Compliance Officer and appropriate staf gre to have timely access io customer identitTeation data, CDD informetion, transaction records and other relevant information. (4) Financial institutionsareaccordinely required 1a develop progiamsegainet money laundering and terrorist financing, such 2-— (a) the development of internal policies, procedures and controls, including appropriate compliance management arrangement and adequate screening procedures to ensure high standards when hiring employees ; (6) on-going employee iraining programs to ensure that employees are Kept informed of new developments, including information on current ML and FT techniques, methods and trends ; (©) providing lear explanation of all aspects of AMLICFT laws and obligations, and in particular, requirements coneersing CDD and suspicious twanseetion reporting ; and (2) adequately resourced and independent audi with the procedures, policies and contrals. (5) A financial institution shall pat in place a structure that ensures the operational independence of the Chief Compliance Officer (*CCO') and Branch Complianes Orticers. function to rest compli 34.1) Failure to comply with the provisions contained in these Regulations: shall attract appropriate sanction in accordance with the provisions of the MLPA. 2011 (as amended), existing laws on AMLICFT and as provided for under the provisions of the Second Schedule to these Regulations, (2) A Financia} institution, its officers or employees shall not benefit From any violation of extant AMLICFT laws and Regulations (3) A financial institution that fails to comply with, or contravenes the provisions in these Regulations, shall be subject to sanctions by the CBN (including the suspension or withdrawal of iis operating licence) (4) Any individual, being an official ofa financial instination, who fails 10 fake reasonable steps to ensure compliance with the provisions of these Regulations stall be sanctioned accordingly based on relevant provisions of the Money Laundering (Prohibition) Act, 2011 (as amended), the Terrorism (Prevention) B 253 Inter Contos, Compliance end Audi. Sanctions and Penstis toe Non Compliance,Bas4 Prohibition oF Nuinboied ‘Anorivmou Acvounts ‘Aecounis in Fieitious namessind Sell pans. ‘Othe forms. of Reverting. ‘Act, 2011 (as amended) end any other relevant law or Regulations, the extant administrative sanction regime issued by the Central Bank ef Nigeria or direction y the Aftomey-General of the Federation; including revocation, suspension or \witherawal of professional licnces by appropriate self-regulatory organizations (8) Criminal cases involving officers and the financial institutions shall be referred totherelevant lew enforcement ayencies forprasecution and the offender shall be liable to forfeit any pecuniary benefit obtained as u result of the violation or breech, (6) Incidence of false declaration, tilse disclosure, non-dectaration oF ion disclosure of retums to be rendered under these Regulations by a financial institution or its officers shall be subject 19 administrative review and sanctions as stipulated in theseor ether Regulations and the appropriate administrativeor civil penaies applic, 35.—(1) A financial institution shall not keep anonymous accounts or accounts in fictitious names. (2) A financial instivution shall not establish correspondent relationships: with high risk foreign banks, including shell banks with no physical presence in ‘any country or with eorressondent banks that permit their accounts to be used by such banks. {3} Shel! benks are prohibited fiom operating ih Nigeria as provided in Money Laundering (Prohibition) Act, 2011 (as amended) (@) A financial institution shall— (a) not enter into or continue fespondent or correspondent banking. relationships with chell hanks; and (b) satisfy ise that a sespondent financial institution ina foreign country does not permit its aecounts to be used by shell banks (3) A financial inscitution, corporate body orany individual that contravenes the provisions of this regulation shall on conviction be liable 10 a fine of not less than 810,000,000 and in addition to the— {ai prosceution of the principal officers of the corporate body + and (6) winding up and prehbition offs re-onstitution o incorporation under any form oF guise. (6) Afinanciel institution shall rake all necessary measures to setisty itself that respondent financial institutions ina foreign country do not permit their ‘aceounts co be used by shell banks. 36.—(1) A Financial institution shall report in writing any single transaction, lodgment or transfer of funds in excess @f"P45,000,000 arid M1 0,000,000 or their ‘equivalent made by an individual and comporate body respectively to the NFLU in aevordance with seetion [0(1) of the Money Laundering (Prohibition) Act. 2011 fas amended). (2) In compliance with seetion 2(1) of the Money Laundering (Prohibition)Act, 2011 (as amended) financial institutions shall render reports in writing on tranefars to or from a foreign country of funds or securities by a person or body corporate including a Money Service Busiiess of sum exceeding S$ 10,000 or its equivelent to CBN, Securities and Exchange Commission SEC") and the NFIU within 7 days from the date of the transaction, (3) Details ofa report sencby a financial institution to the NFIU shall nox be disclosed by the institution or any ofits officers 10 any other person. 37-—(1) A financial institution shall design comprehensive employee. education and training programmes, to make employees fully aware of theit obligations and also (0 equip them with ecleyana skills required for the effective discharge of their AMLICET tases (2) The siming, coverage and coment of the employee trainin programme shall be tailored io mezt the needs ofthe financial institution ensure compliance with the requitements and provisions of these Rezulations. (3) A financial institution shall provide comprettensive training programmes for sal? covering compliance officers and as part of the orientation programmes, for new staff aad those posted to the front office, banking operations and branch affice stall, particularly cashiers, account opening, mandate, and marketing staff, internal contiol and audit steft and managers. (4) A Ginancial institution shall render quarterly returns on their level of compliance on their education and training programines to the CBN and NFIU. (5) Anemployee training programme shall he developed under the guidance of the AMLICFT Compliance Dificer ia collaboration with the top Management. (6) The basic elemenis of the employes training programme of financial institutions shall include— (0) AML Regulations and offences ; (0) the nature of money laundering, (c) money laundering ‘red flags’ and suspicious transactions, including, trade-based money laundering typologies (d) reporting cequirements : (@) Customer Due Diligence (f) isk-based approach to AML and CFT; and (g) tecord keeping and retention policy. (7) financial institution shall sebmitits annual AMLICFT employee taining programme for the following year to the CBN and NFIU at the end of June and December every financial yeat B 255 AMLICET Enaployee cucation ant Trinin Programe,of omptoye cond Protection of Si? wo Report Violations, Addition sreasot AMLICET Risks ‘Adkiional Precelares ne Miligaons Testng Por the adeyuncy oF tke AML cer Conplinee, 38.—(1) A financial institution shall monitor their empleyees’ accounts for potential signs of money laundering, (Q)_A Financial institution shall subject employees aecounts to the same AMLICET procedures as applicable to other customers" accounts (3) The requirement specified in subregulation (2) of this regulation shall be performed under the supervision of the AMLICFT Chiel Compliance Ofer and the account of this officer is in tum to be reviewed by the Chiel Internal Auditor ora person of adequate and similar seniority. (4) Compliance reports including findings shall be rendered to the CBN and NFIU at the end of June and December of every year, (5) The AML/CFT performance review of staf shall be part of employees’ annual performance appraisals 39.—(1) A financial institution shall make it possible for employees to report any violations of the institution’s AMLICFT compliance programme to the A ML! CFT Compliance Officer (2) A financial institution shall direct i¢s employees in writing toakways coe operate fully with the Regulators and lew enforcement agents and to ptomptly Teport suspicious transactions to the NFIU: (3) Where the violations involve the Chief Compliance Officer, employess shall reportthe violations te a designated higher authority such as the Chief imie-nal Auditor, the Managing Direetor or in eanfidence to the CBN oF to the NFIU. (4) A financial institution shall inform itsemployees in writing tomake their reports confidential andl to assure employes of protection. fram victimization as a result of making any report. 40.—(1) A financiel institution shall review, identify and record other areas of potential money laundering risks not covered by these Regulations and report the risk quarterly to the CBN and NFIU. (2) A financial institution shall review its AMIICFT frameworks from time to time with @ view to decermining theit adequacy and idenuifving other areas of potential risks not covered by the AMLCET Regulations 41. After carrying oui the review of the AML/CFT feamework and identified sof potential money laundering vulnerabilities and risks, financial institution shall design additional procedures and mitigants as eontingeney plan in thelt AML/ CFT Operational Manua's with ingication on how such potential risks shall be appropriately managed where they crystallize and details of the contingency plan rendered to the CBN and NETU on the 31st December of every financial year, 4211) A financial institution shall make. policy ccmniiment and subjest its AML/CET Compliance Programme to independent-testing or require its intemal audit function to determine the adequacy, completeness and effectiveness of the programme:shall be rendered to the I year and any: identified ution, (2) Report of compliance by a financial institu CBN and NFIU by 315i December of every finane’ weaknesses or inadequacies promptly addressed by a finaneial in 43.—{1) ‘The ultimate responsibilty for AML/CET complionce is placeil on the Board and top Management of every finaneial institution in Nigeria. (2) ‘The Board ofa financial instiution shall ensure that a comprehensive ‘operational AML/CFT Poliey ang Procedure is formulated annually by Management ‘and presented to the Board for consideration and formal approvel, (3) Copies of the approved AML/CFT Policy and Procecure referred to in subregulation (2) of this regutation shall be forwarded to the CBN’ and NFIU in six months of the release of these Regulations (4) Monthly reports on the AMLICFT compliance status of » finan institution shall be presented to the board by the Chief Compliance Officer for its Information and necessary action 44, Every financial institution shal! have a comprehensive AMLICFT— compliance programme to ude its efforts and te ensure te diligent implementation of ts programme. to entrench inthe institution aculture of compliance, to mininiize the risks of being used 10 launder the proceeds of ctime and slso to provice Proteetion against fraud, reputation and Financial risks Parr ViI—Guibaner: Ou Know Yo Cussosen CRYC™) 46-—{(1) To further deepen finaneial inclusion, a thre tiered KYC standard shall be utilized to ensure application of flexible account opening requirements for low-value and medium value accounts which shall be subject to caps and ‘esuetions as the amounts of iranssctions ine-eaze where the account opening ‘exuirements shall increase progressively with eSs restrictions on operations stated in this regulation (2) Tier one for which— (@) basic customer information sequited :o be provided are (0) passport photograph ; (iA, name, place and date of birth : iti) gender, address, telephone number, ete + (4) information in paragraph (a) of this sub-regulation may be seat electronically or submitted onsite in bank's branches or agent’ office (c) evidence of information provided by a customer or verification of same isnot required (d) the accounts shall be closely monitored by the financial institution (€) the accounts thay be opened at branches of the Financial institutions by the prospective customer er through banking agents ; (Po amount is required for opening of acer unts = B 257 Formal Board anproral of he AML cr Complies. Culture of eomnpliae, ‘Thice Teed YC Reena,B 258 (@ such accounts may cover Mobile Banking products, issue accordance with the CBN Regulatery Framework for Mobile Payments Services in Nigeri (hy deposits may be made by account holder and 31d parties while withdrawal i retricted to account holder only (i) may be linked to robile phone accounts (7) operation s slid only in Nigeria; (4) limited ATM trarsactions are allowed : (2) a maximum single deposit amount is limited to'20.000 and maximum cournutative balance of ¥200,000 at any point in time 5 (m) international fimds transi is prohibited ; and (ny accounts ate strictly 5 (3). Tier two for which— (a) evidence of basic customer information such as passport photograph name, place and date of birth, gender and address is reauired (A) items in paragrap& (2) of this regulation may be forwarded electronically cor submitted on-site in banks’ brenches or agents’ offices ; (c), customer information obtained shall be against similar information contained in the official data-hases such as Naticnal Identity Management Comission (NIMC), Independent National Electoral Commission (INEC) Voters Register, Pedera! Road Safety Commission |FSRC) among others : (d) accounts may be opened face to face at any branch of'a bank by agents for enterprises used for mass payroll or by the aecount holder ; (e) evidence of basic customer information is required at this level and identification, verification and monitoring by financial institutions are also required () accounts may be contracted by phone or st the instiution’s websites (g) accounts may be linked to a mobile phone : (h) may be used for finds transfers within Nigeria only ; (i) the sccounis are sirieily: savingy (/) no ammount is required for opening of the accounts ; (4) such accounts cover Mobile Banking products (issued in accordance Mobile Payments Seevices in (J) maximum single deposit of N50,000and 9 maximum cumulative balance ‘of $400,000 are allowed at any time ; and (un) withdrawal shall be denied where cross-checking of client's identification information is not completed at the point of account opening.(4) Ties three for which— (a) a financial institution shell obtain, verity and maintain copies of all the required documents fer opening of accounts in compliance with the KYC requirements contained in these Regulations ; (0) no amount is required for opening of the accounts 5 (6) there is no limit on cumulative Balance, deposit and gransactions, and (@) KYE requirements shall apply. 46.—{1) A Financial institution shall not establish a business relationship until the relevant parties to the relationship have been identified, verified, and the nature of the business they intend to conduct ascertained, (2) Ware an on-going business relationship is established, any activity that ig not consistent to the business relationship shall be examined to determine ‘whether or not there are elements of money laundering, terrorist financing or any (3) The first requirement of knowing your customer for money laundering ‘and terrorist financing purposes, is forthe financial institution to be satisfied that 4 prospective customer is who he claims to be. (4) A Financial institution:shall nat engage in any Financial business or provide advice to a customer or potential customer except where the financial instiuation is sure or cerain as to who that person actualy is. (5) Where 9 customer is acting on behalf of another in a situation where funds are supplied by someone else or the investment is to be held in the name of someone else, financial Institution shall verify the Wentity of the customer, the agent or tistce except where the customer js itself a Nigerian regulate financial sion, (6) A Financial institution shall obtain evidence of identification of its eustomers. (7) -A'financial institution shell identify all relevant pasties to 2 business relationship ftom the beginning in accordance with the general principles of obtaining satisfactory identification evidence set out in these Regulations, 47. (1) A financial institution shalt obiain sufficient information on the nature ofthe business that its customer intends to undertake, including; expected ot predictable pattern of transactions. (2) The information obtained before the commencenieat of the business shall inelude— (a) purpose Yor opening the account or establishing the relationship ; (8) nature of the activity thet is to be undertaken : (6) expected origin of the funds to be usod during the relationship sand B 259 Diny v0 Ghai detiicaton Evidence, ‘Nature set Level of ine Business,B 260 (d) details of occupation, employment or business activities and sources of ‘wealth or income, (2) A financial institution shall take reasonable steps to keep the information up-to-date as the opportunities arise, include where an existing customer opens @ new account. (4) Any information obisined during sny esting, discussion or other communication with a customer shall be recorded and kept in @ customer's file to censue.as far espracticable, that current customer informnation is readily accessible by the Anti-Money Laundering Compliance Officers (AMLCOs?) or relevant regulatory bodies. ‘Applicaton 48.—(1) A financial institution shall take a risk-based approach of KYC or mexay BUREN hedgmen, {@) A financial instituion shall decile on the number of times to verify the customers” records during the relationsitip, the identification evidence required and when additional checks are necessary and its decisions shall be recorded G)_A financial institution shall for personal acount relationships, identity and verify al joint-account holders. (4) A Siacncial insitution shall for private company oe partnership, identify and verify the principal owners or controllers (3) The idemniticarion evidence obtained from the beginning of a business relationship shell be reviewed against the inherent risks in the business orservice, Idetitien 49, The customer identification process shall continue 10 exist throughout tion the duration of the business relationship. (2) The process of confirming and updating identity and address, and the ‘extent of obtaining additional KYC information collected may differ from one type of firancial institution te another G) The general principles for establishing the idertity of lewal and natural persons and the guidance on obtaining satisfactory identisieation evidence set out in these Regulations are not exlieustve. Facts to 50. In determining customer's identity under these Regulations, the cearsderin following shall be considered— eats tio (@) the name used : (0) date of binth 5 (¢) the residential address at which the customer ean be locate: (A) inthe case of a natural person, the date of birth shall be obtained 4s an important identifier in support of the name and there shall be no-obligation. to verify the date of birch provided by the customer ; and(.)awhere a international passport, drivers licence. INEC voter's card or national idemity card is teken as evidence of identity, the number, date and place or country of issue (as well as expiry date in the ease of international passport und driver's licence) shall be teccrdedt 51—{(1) The identity of a eastomer shall be verified whenever a business relationship is to be established, on account opening, during one-off transaction or where a deriv of linkid trarsuetions takes place (2) In these Regulations, “anseetion” include the wiving of advice and “advice” under this rezulation shall not apply where information is provided on the availability of products or services and when a first interview or discussion rior fo establishinz.a relationship takes place. (3) Where the identification procedures have been completed and business relationship established, 2s long as contact or eetivity és maintained and records conceming that complete and kept, no further evidence of identity shall be undertaking when another transaction or activity is subsequently undertaken. (4) Whece an investor finally realizes the investment made (wholly: or partially), where the amount payable is USS 1,000 oF its equivalent or above or such other monetary amounts as-may, from tinte to time be supulated by any applicable money laundering legislation or Regulations, the identity of the invesior shall be verified and reegrded where this hed not been done previously, (3) Where there isa cedemption or surrender of an investment (whally or partially), a financial institution shall take reasonable measures to establish the identity of the investor where payment is made to— (a) the legal avsner of the investment by means ofa cheque crossed “account payee" sor (#) e bank secount held (solely or jointly), inthe name of the legal owner ef the investment by any clestronie nieans, 52.—(\) Financial institutions shall obtain su ficient evidence ofthe client's Idemtity to ascertain that the client is the person he elairas to be, (2) Where w person is acting on behalf of another, the obligetion isto obtain sufficient evidence of identities of the wo persons involved 53.—(1) Nowvithstanding the provisions of regulation 52 of these Regulations, in situation of consortin the lead-imanager or agent shall supply a confiemation latter as evidence that he has obtained the eequired identity. lendi (2) There is no obligation to look beyond the client where— (c) the client is acting on its own account (rather than for a spesific client or group of clients); (6) the elisnt is a bank, broke institutions ; or fund manager or other regulated financial B261 Time for Werification Identity. Verification of Identity. Exceptions,B 262 Adeitiona! Veriiation Regine ents mtifteaion ‘0 Dineetors fad thor Signatories. Joint ‘Account Holders Verification ‘af Idenvity for igh Risk uiows buy uw keep wah of sigpicant shanges in nature of business Yeitienion of identity of Peon providing Funds foe Tes. (0) all the businessesare to beundertaken in the name of'a segulated financial institution. 54. In other circumstances, except where the elicnt is a1 institution acting 28 agen. on behalf of one or more undesiying ch ji, and has given written assurance that it has obtained the recorded evidence ly to the required standards, identifieation evidence shall be verified fox— (4) the named account holder or person in whose name an investment is registered ; (6) any principal beneficial owner of furids bsing invested who is not the account holder oF named investor (© the principal eontroller ofan account or business relationship including «hose who regulanly provide instnuctions ; and A) any intomvediate pariies includ ‘or owned by an intermediary. cases where an account is managed 55. A Ginancial institution shall identify directors and all the signatories to fan avcount. 56. Identification ‘account hoiders, ince shall be obtained {or all joint applicants or 57. For higher risk business undertaken for private companies including these not listed on the siock exchange sufficient evidence of identity and address shall be verified in respeet of — (a) the principal underlying benef interest and above ; and ial owner(s) of the company with 5% (b) those with prineipal control over the company’s assets (e.g. principal controllers or directors), 58, A financial institution shall— {a) be atalertin eizcumstances thet may indicate any significant changes in the nature of a business or its ownership and shall make enquiries accordingly; and {h) observe the additional provisions for High Risk Categories of ‘Customers under AML/CFT directive in these Regulations. $9_—(1) A financial institution shall obiain and verity the identity ef those providing funds for Trusts. (2) The identity of those providing funds for Trust envisaged under these regulations include the seitlor and those whe are authorized to inyest, transfer funds or make decisions on behalf of the Trust such as the principal trustees and controllers who bave power fo remove the Trustees.60. Where an investor sets up a savings account or a regular savings scheme whereby, the funds are supplied by one person for investment in the hame of another (sueh as in the ease of a spouse oF a child), the person who funds the subscription or makes deposits into the savings scheme is for all intent smd purposes, the applicant for the business in question and for such person, identification evidence shall be obtsined in addition to that of the legal ower. 61—{1) Identification evidence shall be ebiained at the outset for all investors, except personal pensions connected to a policy of insurance taken Out by virtue of w contract of employment or pension scheme, (2) Personal pension advisers are charged with the responsibility of ebiaining: the identifleation evidence on behalf of the penston fund praviderand confirmation that identification evidence has been taken shall be provided on the ansfer of a pension to anotler pension find provider. 62.—(|} An acceptable time-span for obtaining satisfactory evidence of identity is determined by the nauure of the business, the geographical location of the parties and the possibility of obtaining the evidenee before commitments are entered into of actual monies given or receive. (2) Any business conducted before satisfactory evidence of identity has been obiained shall only be in exceptional cases and under circumstances that can be justified with regard to the risk and in such a ease, financial institution shall (2) obtain identification evidence es soon as reasonably practicable alter it has contact with « client with a view to agreeing with the client to verry out an initial wansaction or reaching an understanding, whether binding or not, with the elient that it may eaery out future transactions ; and (6) where the client does not supply the required information a stipulated in paragraph (a) of this regulation, the financial instiution shall discontinue any activity itis conducting forthe elentané being ton end any understanding reached withthe client, (3) A financial institution shall also observe the provision in the t verification under the AMLICFT directive contained in these Regulations. ing of 4) A financial institution mey however stat processing the husiness or ‘pplication immediatly, provided thatit— (a) prompity takes appropriate steps to obtain identification evden (8) does not transfer o- pay any money out to a third party dnt the identification requirements are carried out, and 63—(1) The failure or refusal of an applicant (o provide satisfactory identification evidence within reasonable time and without adequate explanction ‘may lead to a suspicion thatthe depositor or investor is engaged in money laundering. B 263 Savings sehemesand in third parties? Pessonal Pension Schemes Viming of Monies lion Reelin mens. Consequence oF ihe t provide Satisfactory denietion| FvideseeB264 Ineieaion Procedures, ww usiness for cessing Costomer (2) A financial institution under the situation stipulated in sub-regulation (|) Of this regulation shall immediately make an STR to he NFIU based on the information in its possession before the funds involved ave retismed to the potential client or original source of the funds. (2) A financial institution shall have in place writen ard consistent policies of closing on account o° unwinding a transaction where satisfactory evidence of identity cannot be obtained. (4) A financial institution i made by competent authorities a customers. algo required to respond promptly to inquiries -d Financial institutions on the identity of their 64.—(1) A Finaneial institution shall ensure thet it is dealing with a real person of organization whether natural, comporate or legal, by obtaining sufficient identification evidence (2) Where reliance is placed on a third party to identify or verify the identity of an applicant, the overall responsibility for obtaining satistactory iddertification evidence resis with the aecount holding financial institution, {3) In all eases, itis mandatory to ebiain satistictory evidence thaca person, lives at the address he provided and that the applicant is that person or that the company has identifizble owners and that its representatives can be located at the address provided. (A) The identification process should be cumulative, as no single form of identification ean be fully guaranteed as genuine or represent correct identity. (3) The procedures adopted to vevify the identity of private individuals, whether ornot identification was done face-lo-fhee o- remotely, shal be staed in the customer's ile and the resonable steps taken toavoidsingle, multiple ficutious applivations, substicution (impersenation) or freud shall be stated also by the financial institution in the client's Ble (6) An intraduction trom a respected eustomer, ¢ person personally known toa Director or Manager or a member of staff often provides comfort but shall net replace the need for identification evidence requirements fo be complied with a5 yet out in this Regulation, (7) Details oF the person who initiated and authorized the introduction should be kept in the customer's mandate file along with other records and the Directors or Senior Managers shall insist on the prescribed identification procedures for every applicant 6541) Where ariexisting customer closes one account and opens ancther or enters into @ new agreement to purchase products or services, it shall net be necessary 10 verily the identity ar address for such a customer unless the name or the address provided does not tally with the intormation in the financial institution's records, provided that procedures are pul in place to guard against impersonation or fraud.(2) The opportunity of opening the new aceountreferred wo in sub-regulaiion (1) of this regulation shall be utilized to ask the customer to confirm the relevant details and to provide any missing KYC information and where— (a) there was an existing business relatiouship with Ure customer and identification evidence had not previously becu obteined ; () there had been no recent contaci or correspondence with the eustomer within the past three months ; or (©) @ previously dormant account is re-activated, (3) In the circumstances in sub-regulation (2) of this regulation, details of the previous account and any identification evidence previously obtained or sny introduction records shall be linked to the new account-records and retained for the prescribed period in accordance with the provisions of these Regulations, 66.—1) In order to guard against the dengers of postalinterception and fraud, prospective customers shell nat be asked to send originals oftheir valuable personal iderity documents including international passpor. identity cad, driver's licenee, by post. 2) Where chere is no face-to-face contact witha customer and documentary evidence is required, certified truc copies by a lawyer, notary public or cour of competent jurisdiction, banker, accountant, senior public servant or their equivalent in the private sector shall be obtained provided thet the person undertaking the certification 's known end capable of being contacted. In the ease of a foreign rational, a copy of intemations! passport, national identity card or documentary evidence of his address shall be certified by— (a) the-embassy, consulate or high commission of the country of issue + (6) a senicr official within the account opening institution ; or (6) a lawyer oF notary publi (3) Certified True Copies of identification evidence are to be stamped, dared und signed “original sighted by me” by 2 senior officer of the financial instiustion, (4) A fisaneial institution shall always cisurethit 8 good production of the Photographie evidence of identity is cbrained provided that where this is not possible, a copy of evidence certified as providing a good likeness ofthe applicant is acceptable in the inter 67.—(1) Records of the supporting evidence and methods used to verify identity shall be retained for a minimum period of five years after the account is closed or the business relationship ended 2) Where the supporting evidence cannot be copied at the sime it was presented, the reference numbers and other relevant details of the identification ‘evidence shall be recorded 10 enable the documenis to be obtained later, B 265 Cartffeation or enifietion Document. Resanding Wenctieton EvidenesB 266 Conscision in respect of Poyment made by Post (3) Confirmation of evidence in sub-regulstion (2) of this regulation shall bo provided that the origins! documents were scen ty certifying either on the photocopies or on the record that the details were taken down as evidence. (4) Wheee checks are made electronically, a record of the actual information obtained or where itean be re-obtained shall he retained as part ofthe identification evidence, (8) _ The record in sub-regulation (4) of this regulation shall make the reproduction of the actual information that would have been obtained before, less cumbersome 68.—(1) Whete the money laundering risk is assessed to be ow, concession may be granted for product or services in respect of long-term life insurance Dusiness or purchase of personal investment products (2) Where payment is to be made from an account held in a customes"s name ar joinely with one ormore ther persons, at a regulated financial institution, no further evidence of identity shall be necessary. (3) Additional verificerion requirements for postal orélectronie transactions shall apply to the fallowing— (2) products or accounts where funds may be transferred to other types of products or accounts which provide cheque or money transfer facilities 5 (0) situations where funds may be repaid or transferred to a person ether than the original eustomer ; and (e) investments where the characteristies of the produet or account may change subsequently t¢ enable payment to be made to thice parties. (4) Postal coneassion shall not be an exemption fom the raquieerent to satisfactory evidence af a customer's identity and payment debited from an account in the customer's name shall be capable of constituting the required identification evidence in its own right. obi (8) To avoid proceeds of erime from being laundered by a customer who cases a third-party cheque, draft or electronic payment drawn on a bank, payment from joint accounts shall be considcted acceptable for this purpose where dhe name of the account holder from where the funds have been provided shall be clearly indicated on the eecord reflecting che payment or reczint. provideekthet 9 financial institution may rely upon the required docamentary evidenve of a third party, without further verifieation of tne identity, where there is ne epparent inconsistency between the name in which an application is made andthe name on the payment instrument. (6) In the case of a mortgage institution's cheque or benker’s dra, it shall only be possible to rely on the concession in sub-regulation (5) of this regulation where the holder of the account from which the money is drawn is confirmed to hawemet the KYC requirements by the morgage institution or bank, and paymentbby direct debit ar debit card shall be relied upon exceptthe authentication procedure identifies the name of the account holder from which the payment is drawn and confirms the customer's addres, (7) Im respect of direct debits, it shall not be assumed that the account- holding baak-or institution may-carry out any form of validation of the secount ‘name and number or that the mandate shall be rejected where they do not match, (8) Where payment for the product is to be made by direct debit oF debit «avd or notes, and the applicant's account details have not previeusly been verified through sighting of'a bank statement or cheque drawn on the account, repayment proceeds shall only be retuned to the account from which the debits were drawn, (9) Records shall be maintained indicating how a transaction arose, including etails of the financial insiiuition’s branch and account number fom which the cheque or payment is draw. (10) The concession in this rezulation may apply both where an applic is made directly to the financial institution and where a payment is passed trough a regulated intermediary, (11) A financial instixtion that has relied on the postal concession to avoid additional verification requirements; which shall be so indicated on the eustomer’s file, cannot introduce that customer toanother Financial institution for the purpose of offering bank accounts or other products that providle cheque or money transmission facilities. (12) Where the customer in sub-regulution (11) of this regulation wishes wo migeate to an gevount that provides cheque or third panty wansfer facilities, additional identification chocks shall be undertalcen at that time, and where these circumstances occur on a regular basis a financial institution shall identify all the parties to the relationship at the outset, 69. ‘Term Deposit Accounts (*TDA’) can be broadly classified as @ one-off ‘ansnetion provided that a Financial institution shall note that concession is not available for TDAs opened with cash where there is no audit tral of tne source of funds or where payments to ar ftom third parties are allowed into the wecount, 70, Where the balance in an investment fund account is transferred from one funds manayer ro another ard the value at that time is above $1,000 or fis equivalent and identification evidence has not been taken or confirmation obtained from the ceriginal fund manager, such evidence shall be obtained al the time of the transfer, Parr VITI—Gunerat, INFORMATION divided into three broad 71, Establishing identity under these Regulations ‘categories, namely — (a) private individual customers : (b) quasi corporate customers: and (©) pure corporate customers. B 267 Yorn Deposit Account cpa), Invastinent Funds. Establishing FernyB28 Private Fedividuels Gover Toformation, Prive Individual Resident in Nigsria, acumen Evidence of Identity, 7L—A1) The following information shall be established and indeperderaly validated for all private individuals whose identities need to be verified— (a) the full name used ; and (®) the permanenchome address, including landmarks anc posteode, where anailable, (2) The information obiained shall provide satisfection that a person ofthat name exists at the address given and thet the applicant is that same person $9 indicated, and where an applicant has recently moved from his residenee, the previous address shall be validated, (3) The date of birth shall be obtained as required by the Inw enforcement ‘agencies, provided that the information need not be verified and the residence or nationality of a customer is ascertained to assist risk assessnent procedures. (4) A risk-based approach shall be adopted when obtaining satisfhnetory evidence of identity, (3) The extent ané number of checks may vary depending on the perceived risk of the service or business sought ané whether the application is made in person cr through a remote medium such as telephone, pos! or the intemet, (6) The source of funds of how the payment was made, from where and by whom shall always be recorded to provide an audit trail, provided that for hizh risk products, aeounts or customers, additonal steps shall be taken to ascertain the soutee of wealth or funds, (7) For low-risk accounts or simple investment products such as deposit of savings accounts without cheque-books or automated money’ transmission facilites, the finencial insstusion shall saiistY iselas to the identity and address of the customer. 73-—(1) The confirmation of name and address shall be established by reference to 2 number of sources. (2) The checks shall be undertaken by cross-validation thet the applicant exists at the stated address either through the sighting of actual documentary evidence or by undertaking elecrronie checks of suitable databases or by a combination of the two. (3) The overriding requirement to easure thet the identification evidence is setisfactory shall rest withthe financial institution opening the account er providing the product or service. 741) To guard against forged or counterfeit documents, care shall be taken to ensure that documents offered are originals. (2) Copies that are dated and signed ‘original seen’ by senior publi servant or equivalent in a reputable private organization may Se secepted in the imerim, pending presentation of the original documents,(3) Suitable documentary evidence for private individuals resident in Nigerian as contained in the Second Schedule to these Regulations. (4). Checking of a lecal oF national telephone ditectory may be used as Adaitional corroborative eviderce but shall not be used as a primary check. 78—(1) A financial institution shall establish the true identity and address of its customer and carryout effective checks to protect the institution against substitution of identities by applicants. 2) Additional verification of @ customer's identity and ihe fact that the application was made by che person identified shall be obtained through one ot more ofthe following procecures— (a) direct maiting of azcount opening documentation to a named individual aan independently verified address; (#) en initial deposit cheque drawn on a personal account name in another financial institution in Nigeria ; nthe applicant's (€) telephone contact with the applicant prior to opening of dhe account on an independently verified home or business number or a “welcome call” to the customer before transactions are permitted, utilizing a minimum af two pieces ‘of personal identity information that had previously been provided during the setting up of the account ; (2) internet sisson following verification procedures where the cusiomer uses security codes. tokens, or other passwords which had been set up during, account opening and provided by mail orsecure delivery, to the named individual alan independently verified address or (2) card oF account activation procedures. (3) A Financial institution shall ensure that additional information on the nature and level of the business to be conducted and the origin of tie funds to be used within the celationship are obtained from the customer, 76.—{}) An applicant's identity, address and other available information may be checked electronically by accessing other data-bases or sources, as an altemative or supplementary to documentary evidence of identity or address. (2) A finareial institution ste use @ combination of electronic, documentary ind physical checks to confirm different sources ofthe same information provided by a customer (3)_ In respect of electronic checks, confidence as to the reliability of infonnation supplied shall be established by the cumulative nature of checking actossa range of sources, preferably covering a period of time orthrough qualitative cheeks that assess the validity of the information supplied. (4) The number or quatity of checks to be undertaken shall vary depending con the diversity as well as the breath and depth of information available from each B269 Pysieal Cheeks on Private Inutviduale Resident in Nigeria, Elecronie Cheeks,B 270 ici slit Tore steer Eoancaly sesso Apnea kstuentin Nee (5) Verification that the applicant is the datessubject shall be conducted within the checking process. (6) Suitable electronic sources of informetion include — (@) un cleosroni¢ search of the electoral register not be used as a sole identity and addroas check ; (by aecess to invernal or extemal account database ; and (c) ‘an electronic search of pubsie records where available (7) Application ofthe proves und provedurss in chis reputation shal asist Francia institutions to guerd against impersonation, invented-identitias and the use of false addresses proviced that where an applicant is a non face-to-face person, one or more additional measures shall be undertaken for reeassurance Pay IXGPNANCAL BxeLisen’ poe yn SOCIALLY Inn FHSANCeNLLY DSADVANtAcin APrLICAN Is THAN), Notwithstanding that access to basic baiking feclities and other financial services is a necessary requirement for most adults, the socially or Financially disadvantages shall not be preciused from openingaccountsor obtaining cuter financial services merely because they do not possess evidence (@ iden themselves. (2) ‘The socially or financially disadvantaged shall not be presided fiom opening aecounts oF obtsining other Shancial services merely because Vey co not possess evidence to identify themselves since access to basie barking fheilities and other financial services is a necessary requirement for most adults, (3) Where the socially or financially disadvantaged cannot reasonebly ceimply with sub-reguletion (1) ofthis regulation, the internal procedures of the financial institution shall make allowance for such persors by way of provicing appropriate advice to staf on how the identities of such group of persons may be confirmed and what checks shall be made under these excep.ional circumstances. (4) Wherea financial institution has reasonable grounds to eoneluide that an individual client is not able to produce the detailed evidence of his identity and caro: reasonably be expected to dos. the jastiwuticn may acceptas identification ‘evidence, » letter of statement fren 1 person in a position of responsibility such fs solicitors, doctors, ministers ol veligicn and teachers who know the eliant, confirming that the client is who he says he is and his permanent address. (5) Whena financial institution has decided to treat a client as “financially excluded”, it shall record the reasons for doing so along with the zecount operi documents, and returns of same shall be rendered to the CBN and NFIU quarterly. [6) Where w letter ot statement is accepted from & person in pasition of responsibility, it shall includes telephone number whats the person can be contseledl {or verification and the financial institution shall verify from an independent soureethe information provided by that person $0 as to satisly itself thal stich customer is the person he claims to be, (7) A finanea| institution shall include in its iruernal procedures the “alternative documentary evidence of personal identity and suldress” that may be accepted to guard against “Haancial exclusion” and lo minimize the use of the exception procedure. (8) A firvancial institution shall putin place additional monitoring for accounts pened under the financial! inclusicn procedures to easure that such accounts are ot misused, 78.—{1) Intemational passports or national identity cards shall generally be vatlable as evidence of the name of a customer and reference numbers, date ang country of issue shall be obtained and recorded in the customer's Ne as part of the identificotion evidence in reepee! of prospective eustomers whe are riot resident in Nigeria but who make face-to-face contact (2) A financial instiution shall obtain separate evidence of an applicant's Permanent residential address ftom the best available evidence, prelerably from an official souree. 3) A PostOlice Box number (°®O.Box Number”) alone shall not beaeeepted as evidence of address and the applicant’ residential adress shall be suc that it may be physically located by way of a recorded description or other means. (4) Relevanc evidence shall be obtained by the financial institution directly from the customer oF through @ reputable credit oF financial institution in. the applicant's home country or country of residence, provided that particular eave shall be taken when relying on identification evidenee obtained from other countries, (5) A financial instiution shall ensure that a customer's true identity and. current permanent address arg actually confirmed, Inguch eases, sopies of relevant identity documents shall be sought and retained national has recently arrived in Nigeria, reverence may ele. 10 (6) Wherea forei bbe made to his employer, university, evidence of traveling documents verify the applicart’s identity and residential address, (7) For ¢ private individual not resident in Nigeria, who wishes to supply ocumentary information by post, telephone or electronic means, « risk-based approach shall be taken where the financial institution shell cbrain ane separate item of evidence of identity in respect of the name of the customer and one separate item tor the address. (8) Documentary evidence of name und adress may be obtained from (W) an original documentary evidence supplied by the customer; (0) a certified copy of the customer's passport or national identity eard sad a separate certified document including uiliy bill and driving licence, verifying the customer's address ; or B271 Private Irxtiveduals pot resident inNiwera,B272 Nov Fast took: ents bon, etagecsor Asilum Seekers. (c} a branch, subsidiary, head office of a correspondent benk. (©) Where an applicant does not already have a business relationship with the financi jon that is supplying the information o- the financial institution is outside Nigeria, certified copies of relevant underlying documentary evidence stall be sought, obtained and retained by the institution. (10) An additions! comfort shall be ofvained by eon firming the customer's true name, address and date of birth from a reputable credit instiuuion in the customer's home country, where nevessary. G11) A financial institution shall use requirements in this regulacion in ‘conjunction with the First Schedule to these Reguiaiions. 79.—{1) In respect of a non face-to-face customer, an additional measure ‘orcheck shall be undertaken to supplement the documentary or electronic evidence {0 ensure that an applicant is who he claims to be and these additional measures shall apply whether the applicant is resident in Nigeria or elsewhere anc! shall be particularly robust where the applicant is requesting a bank account o- other Product or service that offers money transmission or third party payments. (2) Procedures to identify and outhenticate a customer shell ensure that there is sufficient evidence either documentary or electronic toconfirm his address and personal identity and to undertake at least one additional check to guard ‘against impersonation or fraud. (3) The extent of the identification evicence required in ths regulation stall ‘depend on the nature and characteristics ofthe product or service and the assessed ‘sk, provided that care shall be taken to ensure that the sarne lave! of fnformation is obtained for intemet customers and other postal or telephone customers (4), Where reliance is placed on intermediaries to undertake the processing cof applications on the customer's behalf. checks shall be undertaken to ensure ‘thatthe intermediaries are regulated for money laundering prevention and that the relevant identification procedures are applied. (5) A financial instiution shall conduct regular monftoring of internet-based business or elients and where a significant proportion of the business is operated clecironically, computerized monitoring systems or solutions that are designed to recognize unusual transactions and related patterns of transactions shall ne put in place to recognize suspicious transactions. (6) In all cases, evidence as to how identity has been verified shall be ‘obtained and retained with the account opening records. (7) AMLICFT compliance officers shall review these systems of solutions, record exemptions and report same quarterly to the NFTU. 80.—(1) Where a refugee orasylum seeker requires a basic bank account without being able 10 provide evidence of identity, authentic references fiom the Nigerian Immigration Services endorsec: by the State Sceurity Serviees shall be used in conjunetion with other readily available evidence(2) Additional monitoring procedures shall be undertaken in respect of sub- regulation (1) of this regulation to ensure that the use of the account is consistent with the customer's circumstances. 81.—(1) When opening accounts for students or other young people, the normal identification procedures set out in these Regulations shall be followed and where such procedures may not be relevant or do not provide satisfactory identification evidence, verification may be obtained through — (@) the bome address of the parent ; (®) confirming the applicant's address from his institution of learning ; or (6) seoking evidence of a tenancy agreement or student accommodation contract 2) An account fore minor may be opened by a family member or guardian and where the adult opening the account does not slready have an account with the financial institution, the identification evidence for that adult or of any other Person who will opetate the account shall be obtained in addition to obtaining the birth certificate and passport of the child, provided that strict monitoring shall be undertaken, (3) For accounts opened through a school-related scheme, the school shall provide the date of birth and permancnt address of the pupil and complete the standard account opening documentaticn on behalf of the pupil (4) Account ofa minor shal] be constantly monitored to ensure that itis not used for the purposes of money laundering or terrorist financing and that the transaction does not exceed an amount that should be determined by the financial institution. 82. Trusts, nominee companies and fiduciaries are popular vehicles for criminels wishing to avoid the identification procedures and mask the origin of the dirty money they wish to launder. The particular characteristies of Trust that atiract the genuine customer, the anonymity and complexity of structures that they can provide are also highly attractive to money launderers. Pat X—Taust, Pouicy, Ructier ao PavMenr oF Fusos 83.(1) Truste, nominees and fidu laundering risk than others. (2) Idemtiication and “Know Your Customor’s Business” procedures shal be set and managed in accordance with the perceived rick {G) The principal objective of money leundoring prevention susts, nominees and fiduciaries shall be to verify the identity ofthe provider of funds such as the seitlor, and those who have contol ever funds like the tusteesand any controllers ‘who have the power to remove the trustees. (4) For discretionary or offshore trust, the nature and purpose of the tust ‘and the original source of funding shall be asce-tain d accounts present @ higher money B27 Students and Minors, Quasi Corporate Customers, Trust, Nominees ard FiductasesB24 itshore Trusts (3) Whilst reliance may be placed on other financial institutions that are regulated for money laundering prevention to undertake the checks or confirm identity, the responsibility to easure that this is undertaken shall vest with the financial institution and the underlying evidence of identity shall be made available to law enforcement agencies in the event of an investigation. (6) Identification shall be obtained and not waived for any Lustee who does not heve autherity te operatean account and cannot give relevant instructions concerning the use oF transfer of funds 84.—(1) Since offshore trusts peesent a higher money laundering risk, additional measures shall be needed for Special Purpose Vehicles (S?Vs) or International Business Companies connected to trusts, 2) Where trusts are set up in offshore locations with strict bank secree: oor confidentiality rule, those created in jurisdictions without equivalent money laundering procedures in place shall warrant additional enquiries. @) Except an applicant for business is a regulated financial institusion, measures shall be taken to identify the toust company cr the corporate service provider inline wit the requirements for professional intermediaries of companies generally. (4) Certified copies of the documentary evidence of identity forthe principals, including settlers and controllers-on whese behalf the applicant for business is acting shall be obtained. (5) For overseas trusts, nominee and fiduciary accounts, where the applicant isa financial institution chat is cegulated for money laundering purposes— (a) reliance may be placed on an introduction or intermediary certificate leter stating that evidence of identity exists for all underlying principals and confirming that there are no anonymous principals (o) the trustees or nominees shell be asked to state ftom the outset the capacity in which they are operating or making the applicaifon ; and (c) documentary evidence of the appointment of the current trustees shall beobsained. (5) Where the evidence is not retained in Nigerig, enquiries shall be made to determine, that there is no overriding bank secrecy or confidentiality constraint that shall restrict access tothe documentary evidence of identity, shall itbe needed in Nigeria. (7) An application to open an account or undertake 2 transaction on behalf of another without the applicant identifying his trust or nominee capacity shall be regarded as suspicious and shall lead to further enquiries and rendition of reports, to the NFIU. (@) Wherea bank in Nigeriais the applicant for an offshore trust on bebalf of a customer, where the corporate trustees are not regulated, the Nigerian benk shall undertake due diligence on the trust itself.(@) Where finds have been drawn upon an account that is not under the control ofthe trustees. the identity of two of the authorized signatories and their authority so operate the account shall be verified except where the identity of beneficiaries have not previously been verified and veeification shall be carried ut where payments are mace to them. 85,—{1) Por Conventional Nigerian Trusts, identification evidence shall be obtained for— (a) those who have contral over the funds, the pri include the seitlor ; ipal trustees, who can (H) the providers of the funds, the setlors, except where they are decease and (2) where the seitior is deceased, written confirmation shall be obtained for the source of funds, grant of probate ot copy of the Will or ether document creating the ‘Trust (2) Where a corporate trustee such as a bank acts jointly with 2 co-trustee, any non-reguiated co-irustee shall be verified even where the corporate trustee is covered by an exemption and the relevant guidance contained in these Regulations for verifying the identity of persons. institutions or companies shall be followed. (3) A financial institution may not review an existing trust but the bank confirmation of the seitlor and the appointment af any additional ustees shall be obtained, (4) Copies of any underlying documentary evidence shall be certified as ‘tue copies and a check shall be carried Out wo ensure that any bank account on which the trustees have drawn funds is in their names. (5) Where a risk based approach is adopted, consideration shall be given as to whether the identity of eny additional authorized signatories to the bark account may be verified, (6) A payment for any trust property shall be made to a ustee and as a malter of practice, some life assurance companies make payments dircetly to, boncliciaries on reociving « request ftom the trustees, payment shall be made to the named beneficiary by way of a crossed cheque marked “account peyee only” or a bank transfer direct to an account in the name of the beneficiary in such circumstances 86.—(1) Where money is received on behalf of « trusi, reasonable steps shall be taken to ensure that the source of funds is properly ideniified and the nature of the transaction or instruction is understood, (2) A Payment shall be propesly authorized in writing by the trustees. 87, Where a trustee who has been verified is replaced, the identity of the row trustee shall be verified before he is allowed to exercise control over funds of the Trust B 275 Consertonal Family and Absolute Nigerian Trusts. Receipt ard payment of Funes. Ienifionion ofnew TrssteosB 276 Life policies placed in “Trust Powers of Autorney ‘and Thied Party Mandates Executorsp ‘Accounts, “Client Accounts” Opened By Professional Iver med aries 88, Where a life polisy is placed in trust, an applicant for the policy is also a trustee and where the trustees have no beneficial interest in the funds, ic shall verify the identity of the person applying for the policy except that che remainder of the trustees shall be identified in situation where policy proceeds were being paid to a third party not identified in the trust deed. 89. (1) The authority to deal with assets under a Power of Attomey and Third Party Mandates constitute a business relationship, (2) At the start of a relationship, identification evidence shall he obtained from a holder of Power of Auomey and third party mandates in addition to the customer or subsequently on a later appointment of a new attorney, where advised, ‘within one year of the start of the business relationship. (3) An atiomney for corporate of trust business shall be verified and a financial institution shall always escectain the reason for the granting of a power of attorney, (4) A records of a transaction undertaken in accordance with a Power of Attomey shall be maintained as part of the client's recor Part XI—ExectTorsine, Curent ACcOUN'S, UNincemror inn Avo CORPORATED ORGANIZATIONS 0.11) Where 4 bank accourt is opaned for the purpose of winding up the estate of a deceased person, the identity of the executor or administrator af the estate shall be verified. (2) Identification evidence shall no: be required for the executors or administrators where payment is made ftom an established bank or mortgage institution's account in a deczased’s name, solely for the purpose of winding up the estate in accordance with the grant of probate or letisr of admin‘stration, (3) Where a life policy pays out on death, identification evidence shal not be obtained forthe legal representatives (4) A Payment to beneficiaries in sub-regulations (1) (2) and (3) of this ‘regulation on the instructions of the executor or administrator may be made without additional verification requirements, except that where a beneficiary wishes to ‘transact business in his own name, then identification evidence shall be required. (5) Where suspicion is aroused in respect of the nature or origin of assets comprising an estate that is being wourd up, such suspicion shall be reported the NFIU. 91.—(1) Stockbrokers, fund managers, solicitors, accountants, estate agents ‘and other intermediaries frequently hold funds on behalf of their clients in “client accounts” opened with o financial institution, @) Accounts in sub-regulation (1) of this regulation may be general omnibus accounts holding the funds of many clients or tney may be opened specifically fora single client.G)_In cach case, it is the professional intermediary who is the financial institution's customer. These situations shall be distinguished from those where an intermediary introduces. client who himself becomes customer ofthe financial Instinution. (4) Whete a professional intermediary is cqvered and is indeed monitored under the motiey laundering Regulations or AMLICFT supervisors or their equivalent, ident fication may he waived on production of evidence. (8) Notwithstanding sub-regulation (4) of this regulation, where the professional incermediary is not regulated by money laundering Regulations or {heirequivalent, the ficancial institution shall verify the identity ofthe professional intermediary and also verify the identity of the person on whose behal! the professional intermediary is acting (6) Where it is impossible for a financial insiitution to establish the identity of he person for whom a solicitoror accountant isacting, it shall takea commercial decision based on its knowledge of the intermediary, as to the nalure and exter ‘of business that they are prepared to conduct. where the professional firm is nat itself covered by these Regulations. (7) Finencial institutions sball make reasonable enquities about ransactions passing through client-accounts that give cause far concern and shell report any suspicion to the NFIU, 92—(1) Where an applicant isan un-incorporated business of a partnership ‘whose principal partners or controllers do not already have « business relationship with the financial institution, identification evidence shall he obtained in respectof te prtcipal beneficial owners or controliersand any signatory in whom significant control has been vesied by the principal beneficial ewners or controllers. (2) Evidence of the address of s husiness or partnership shall be ebainad and where a current account is being opened, a visit to the place of business may bbe made to confirm the true nature of the business activities and a copy of the latest report and audited accounts shall be obsained. (3) The nature of the business or partnership stall be verified to ensure that ithas a legitimate purpose. (4) Where a formal partnership arrangement exists, 2 mandate from the partnership authorizing the opening of an account or undertaking of he transaction shall be cblained. 93. A limited liability partnership shall be trested as a corporate customer for verification of identity and know your customer purposes. %4—{(1) The lezal existence of an applicant-compary shall be verified from official documents or sources to ensure that persons purporting 10 act on its behalf.are fully authorized. B27 Un incorporated Business of| Partnership, Limited Liability Partnership, Pore ‘Corporate CustomersB278 Tae identity oft corporate company, Non Face rosFace Busines. Pub Reyistered Companies. {2) Where the contvolling principals cannot be identified, enquiries shall be sade to confirm that the legal person is not merely a “brast-plate company”. 95—(1) The identity of a corporate company shall comprise of— (@) registration number : (B) registered corporate name and any trading names used ; (©) registered address and eny separate principal trading addressed : id) dircotors ; (e) owners and shareholders : and (A the nature of the company’s business, (2) The extentof identification measures required to validate the informacion or the documentary evidence to be obtained in this regulation depends on the nature of the business or service that the company requires from the financial institution and a risk-based approach shall be taker (2) Information as to the nature of the normal business activities that the company expects to underiake with the financial institution shall be obtained. (4) Before a business relationship is established, measures shall be taken by ‘way ef company search at the Corporaus Affairs Commission (CAC) and other commercial enguities undertaken to check that the applicant-company’s leual existence has nol teen or is notin the process of being dissolves, struck off, wound up or terminated, 96.—(1) Additional procedures shall be undertaken to ensure that the applicant's business, company or soeiely exists at the address provided and it is {or a legitimate purpose because of the risks with non face-to-face business, as with the requirements for private individuals. (2) Where the characteristics of the product or service permit, sieps shall be taken to ensure that relevant evidence isobtained to confizm that any individual representing the company has the necessary authority to do so. (3) Where the principal owners, controllers or signatories need to be identified within the relationship, the relevant tequirements for the idercificetion of personal customers shall be fallowed. 97. (1) Corporate customers that are listed on the stock exchange are considered to be publicly- owned and generally accountable and there is no nezd (o verily the identity of the individual shareholders. (2) The Identity of the directors of a quoted company may not be verified. (3) A financial institution shall make appropriate arrangements fo ensure that an officer or employee, past or present, is not using the name of the company 0 its relationship with the financial institution fora criminal purpose. (4) ‘The Board resolution or other authority for 2 sepresentative to act on behalf ofthe company ints dealings with the Financial institution shal! be obtained.(5) Phone calls may be made to the Chief Executive Officer of a company {in sub-regulation (4) of this regulation to intimete him of the application to open the account in the Financial institution. (6) Further steps shall not be taken to verity identity more than the usual commercial cheeks where the applicant company is listed on the stock exchange ‘or there is independent evidence to show that itis a wholly owned subsidiary oF a subsidiary under the control ef such a company. (7) Due Diligence shall be conducted where the account or service required falls within the category of higher risk business 98. Where the applicant is an unquoted company and none of the principal directors or shareholders already have an account with the finaneial institution, 10 verily the business, the following documents shall be obtained fiom an official or 8 recognized independent souree— (2) a copy of the certificate of incorporation oF registration, evidence of the compsny's eogistered aderess and the list of shareholders and directors; (6) search at the CAC or an enquiry through a business information service to obtain the information on the company ; (@) an undertaking ftom ¢ firm of lawyers or accountants confirming the documents submitted to the CAC ; (@ a financial institution shall pay attention to the place or origin of the documents and background against which they were produced : and (e) where comparable décunients cannot be obtained, verification of principal benefietal owners or controllers shall be undertaken, 99, Where a higher-risk business applicant is seeking to enter into @ full banking relationship oF any other business relationship where third party funding and transactions are permited, the following evidence shall be obtained either in documentary or electronic form— (0) for established companies that are incorporated for 18 months or more, a set ofthe lavest report and audited accounts shall be produced ; (b) aseatch report at the CAC or an enquiry through a business information service or an underteking ffom fem of lawyers or accountants confirm the documents submitted to the CAC ; (©) a certified copy of the resolution of the Board of Directors 19 open an acount and confer authority on those who will operate it; and (A) the Memorandum and Articles of Association of the company. 100.—{1), Where a private company is undertaking a higher risk business, in addition o verifyingthe legal existence ofthe business, te principal requirement is to look behind the corporate ently to identify those who have ultimate control ‘over the business and the company B29 Private Companies Higher Risk Business Applicant. HigherRisk Usinese ‘Relating 0 Private CompaniesB 280 Foreign Financia Institutions. (2) What constitutes significant sharcholding or control for the purpose of this regulation depends on the nature of the company and identification evidence shall be obtained for shareholders with interests of 5% or more. (3). Identification evidence shall be obtained for the principal-beneficial ‘owner of the company and any other person with principal control over the company's assets. (4) Where the principal ewner is another corporate entity or trust, it shall take measures that look behind that company or vehicle and verify the identity of the beneficial-owner or settlers and where a financial institution is aware that the principal-beneficial owners or controliershave changed, tey are required o verily the identities of the new owners, (5) Financial institutions shall identify directors who dre not principal controllers and signatories to-an account for risk based approach purpose. (6) Financial institutions shall visit the place of business to confirm the «existence of such business premises and the nature of the business conducted. (1) Where suspicions are aroused by @ change in the nature oF the business transacted or the profile of payments through @ benk or investment account, further checks shall be made to ascertain the reason for the changes. (8) In fall banking relationships, periodic enquiries shall be made toestablish changes to controllers, shareholders or the original nature of the business ot aectivity (9) Particular care shall be taken to ensure that full identification and KYC requitements are met if the company isan International Business Company (I3C) registered in an offshore jurisdiction and operating out ofa different jurisdiction, 101.—(1) For a foreign financial institution, the confirmation of existence and regulated statos shall be checked by— (a) checking with the home country’s Central Bank or relevant supervisory tbody ; {b)_ checking with another office, ‘bank in the same country 5 subsidiary, branch, or correspondent (o) checking with Nigerian re institu Jated comespondent bank of the overseas (d) obtaining evidence of its license or authorization to conduct financial ‘and banking business from the institution itself. (2). Additional information on banks all over the world may be obtained from various intemational publications and directories or any of the international business information services (3)‘The publications referred to in sub-regulation (2) of this regulation shall not replace the confirmation evidence requirements under these Regulaciors.102.—{1) A Bureau De Change (“BDC”) is subject to the provisions of these Regulations and shall be verified in accordance with the procedures for other financial institutions, and satisfactory evidence of identity, ownership st-ucuure, source of funds and a certified copy of the applicant's operating license shall be obtained. (2) A financial institution shall consider the risks associated with doing business with BDCs before entering into a business relationship with them, 10341) As part of KYC documentation for designated non-financiat businesses and professions, the certificate of registration with Special Control Unit against Money Laundering in the Federa] Ministry of Trade and Investment or a certificate ftom 8 self-regulatory organization 2s defined under the relevant Designated Non-Financial Business and Professions {“DNFBP") Regulations shall be obtained including identities of atleast two of the directors, (2) Where an application is made on behalf of a elub or soviety, a financial institution shall take reasonable steps to satisiy itself 2s to the legitimate purpose of the argonization by sighting its constitution and the identity cf at least two of the principal contact persons or signatories shall be verified in line with the requirements for private individuals and waere signatories are changed, a financiel institution shall verify the identity of at least cwo of the new signatories. (3) Where the purpose of a club or a society is to purchase the shares of « regulated investment company er where all the members are regarded! as individual clients, al the members in such cases shall be identified in line with the requirements for personal customers on a case-by-case basis, 104.1) Where transactions carried aut on behalf of en Occupational Pension Scheme, where the cransaction is not in relation to a long term policy of insurance, the identities of both the principel employer and the Trust shall be verified, (2)_ In addition tw the identity of the principal employer, the source of funding shall be verified and recorded to ensure that a complete audit trail exists if the employer is dissolved oc wound up. (3) For the Trusices of Occupations! Pension Schemes, satisfactory identification evidence shall be based on the inspection of formal documents concerning the Trust which confirm the names of the current Trustees and their addresses for correspondence and in addition to the docurnents, confirming the Trust identification shall be based on extracts [rom Public Registers or references from Professional Advisers or investment Managers. (4) Any payment of beneflis by or on behalf of the Trustees of an Occupational Pension Scheme ~will not requite verification of identity of the recipient. (5) Where individual metnbers of an Occupation Pension Scheie are to be sven personal inyestment adviee, their iertites sha'l be verified but where the B81 BureauDe henge Designated Nor Financial Businesses and Professions (DNERPS), eeupaions Pension SchemesB 282 Rested Chacity Organiza Rofigous Organizations ROs. Government and Partai, ‘Trustees and principal employer have been satisfuctorily identified (and the information is still current) it ean be appropriate for the employer lo provide confinnation of the idemity of individual employees. 105—i1) A financial institution shall adhere to the identification procedures requirements for opening of accounts on behalf of charity organizations ; and the confirmation of the authority to actin the name of the organization, (2) ‘The opening of accounts on behalf of charity organizations in Nigeria shall be carried out by a minimum of two signatories, duly verified and. documentation evidence shall be obtained. (3) When dealing with an application trom a registered charity organization, financial institution shall obtain and con‘itm the name and address of the organization concemed. (4) Where @ person making an application or underteking a transaction is hot the official correspondent oF the recorded altemate, a financial inslitulion shall send a letter to the official corresponelent, invorming him of the chatity ‘crganizations" application before it and the official correspondent shall respond a3 ‘a matter of urgency where there is any reason to suggest that the application has been made without authority (5) An application on behalf of un-rogistered chavity organization shall be made in accordance with the procedures for clubs and societies 2s get out in these Regulations. (6) Where a charity organization is opening a current account, the identity of all signatories shall be verified and where the signatories change, identities of the new signatories shail be verified, 106. A Religious Oreanization (*RO") shall have a CAC, and SCUML, registered numbers and its identity may be verified by refevence to the CAC, appropriate headquarters of regional area of the denomination, snd the identity of at Teast 10 signatories to its account shall be verified, 107.1), Where te applicant for business is.» legal person, a financial institucion shall verify the legal standing of the applicant, including its principal ownership and address, 2) A certified copy ofthe resolution or ther documents which authorise «an officia| representing the body to open an gezount or undertake any transaction shall be obtained, G) A financial institution shall telephone the Chief Executive Officer of the organization or parasiatal concerned, 10 verify and confirm the epplication 10 ‘open an aecount with the financial instizution, (4) Anauthorization from the Federal or State Accountant-General shall be ‘obtained before any of the three tiers of government or parastatals can open accounts with s financial institution in Nigeria,108, ‘The euthenticity of an applicant who requested to open accounts or undertake transactions in the ame of Nigerian-resident foreign consulates and any documents of authorization presented in support of the application shall be checked with dhe Ministry of Foreign Alfsirs and the relevant authorities in the Consulace’s home country or as confirmed by the Head of the igh Commission of that country in Nigeria, 109. Whilst the responsibility to obtain satisfactory identification evidence: rests with the Financial institution thatis entering into a relationship with a client, itis reasonable, in a number of circumstances, for reliance to he placed on another financial institution to— (a) undertake the identification procedure when introducing a customer and to obtain any additional KYC information from the client: (©), confirm the identification details where the customer is nor resident in Nigeria ; of (©) confirm that the verification of idemity has been carried out where an agent is acting for a principal. Parr XiI—Iwmonierions, AmticaTions Axb Roniiay INTERMEDIARIES 110.—(1) Where an intermediary introduces acustomer and then withdraws fiom the ensuing relationshipaltogether, then the underlying eustomerhas become the applicant for the business and shall be identified in line with the requirements for personal, corporate or businass customers as appropriate 2) An introductory Jeter shall be issued by the introducing financial institution or person in eapect of each applicant for business. (3) To ensure that product-providers meet their obligations, satisfactory idemtification evidence shall be obtained and retained for the necessary statutory poticd. (4) Bach introductory latter shall either be accompanied by certified copies of'the identification evidence obtained inline withthe usual practice cf certification of identification documents or by sufficient desaits end reference numbers that sill permit he actual evidence obtained to be se-oblained ata later stage. M11—(1) Where other arrangements have been made, the service provider shall verily the identity itself and financial intermediary shall provide slong with, each application, the customer's introductory letter together with certified copies of the evidence af identity wihich shall be placed in the customer's file, (2) Where these procedures are followed, # prochuct provider, stockbroker cor invesiment banker shall be considered to have fulfilled its own identification obligations. (3) Whete the letter is nat forthcoming from the intermediary, or the letter indicates that the intermediary has not verified the dentity of the applicant, the B 283 Fonign Consulates Inemediies or other third panies ip venity demi oF to inroduce business, Invrodutions from Aviborized Financial Innrmectaes Wives Applications.B 284 Yor weiter Application. Foreign Inucredinies Comporate Group Traodcons, service provider shall sassy its obligation ky applying is own direct identifica procedures 112.—{(1) A Unit Trust Manager and other product providers receiving nion-written applications from a finaneial intermediary, where a deal is made over telephone or by other elentronic means, shall verity the identity of such customer and ensure that the intermediary provides specific confirmation that identity has. been verified (2) The answers given by the intermediary shall be recorded and retained fora minimum period of 5 years, G) The answers constitute sufficient evidence of identity in the hands of the service provider. 113, Where business is introduced or received from a regulated financial intermediary who is outside Nigeria, the reliance that stall be plaeed on that intermediary to undersake the verification of identity-check shell be assessed by the AMLCO or some otter competent persons within the financial institution. on a case-by-case basis based on the knowledge of the intccmediary. 114.—{1) Where a customer is introduced by one part of fineneial sector group to another, idemiity shall not be re-veritled and neither shall the records be duplicated except— (@) the identity of the customes hes been verified by the introducing erent company, branch, subsidiary or associate jn tine with the money laundering requirements of equivalent standards and taking account of any specific requirements such as separate address verificetion ; (8) no exemptions or concessions have been applied in the original verification procedures that would not be available to the new reletionships (¢) 8 group introduction letter is obtained and placed with the customer's account opening records ; and (2) im respect of group introducers from outside Nigeria, in which case arrangements shall be: put in place zo ensure that identity is verified in accordance with requirements and that the underlying records of identity in respect of introduced customets are retained for the necessary period. Q) Where a finarcial institution has day-to-day access to all the group's KYC information and revotds, there is no need io identify an introduced customer or cb:ain a group introduction letuer where the identity of that customer has been verified previously. (3) Where an identity of a customer has not previously been verified, then any missing identificevion evidence will nzed 19 be obtained end a risk-based approach taken on the extent of KYC information that is available on whether or Not additional information shall be obtained.(4) A finaneial institution shall ensure that there is no seerecy or data protection legislation that would restriet free access to the records an request or by low enforcement agencies under court order of relevant mutual assistance procedures. (5) Where such restrictions apply, copies of the underlying records of identity shail, wherever possible, be sought and retained, (6) Where identification records are held outside Nigeria, it shall be the responsibility of the financial institution to ensure that the records available meet the requirements in these Regulations, 115.—(1) Where an applicant is dealing in ite own name as azent for its own client, 2 financial institution shal, in addition to verifying the agent, establish the identity of such a client, 2) A financial institution shall accept or admit evidence as sufficient where ithas established that the client is— (a) bound by and has observed these Regulations or the provisions of the Money Laundering (Prohibition) Act, 201 (as amended) ; and (®) acting on behalf of another person and has given a written assurance that he has obiained and recorded evidence of the identity of the person on whose behalf he is acting (3) Where anoiher financial institution deals with its own efient regardless of whether or not such a client has disclosed to the financial institution, then where— (@) the agent isa financial institution, there is no requirement to establish thc identity of such a elient of to obtain any form of written confirmation trom the agent concerning the due diligence undertaken on its undeylying clients; (6) evegulated agent from outside Nigeria deals through a customer omnibus account or for a named customer through a designated account, the agent shall provide a written assurance that the identity of all the underlying elients has been verified in accordance with their local requirements ; and (0) such an assurance cannot he obtained, then the business shall not be undertaken, (4), Where an agent is either unregulated or is not covered by the money laundering legistation, then each ease shall be treated on iis own merits, {3) The knowledge of the agent shall determine the type of the Due Diligence standards to apply aad risk-based approach shell be observed by a financial institution, 16, Where there is a syndicated ending arrangement, the verifieation of identity and any additional KC requirements rest with the lead-manager or agent to supply the normal confirmation letters B2g5 Dasiness Conductes by Agent, Syhdicawee Lending.B 286 Corrsipon- dont Relationship. Aeiuisition stone Final and hisiness by saute 117.—(1) Transactions conducted through corsesporident relationships shall be managed, in accordance with 2 risk-based approach; and “Kno Your Correspondent” procedures shall be established to ascertain whether or not the correspondent bank or the eounter-party is itself regulated for money laundering prevention; and where reguluted, the cocrespondent shall verify the identity o customers in accordinee with FATF standards; and where this is not the cose, aulditional due diligence shall be required to ascertain and assess the correspondent’s intemal policy on money laundering prevention and KC procedures. (2) ‘The volume and nature of transactions flowing through comespandent accounts with a finencial institution, from high risk jurisdictions ot those with inadequacies oF material deficiencies shall be monitored against expected levels ‘and destinations and eny material variances shall be checked. (G) A financial institution shall maintain records and ensure that su‘ficient ‘due diligence has been undertaken by the remitting bank on the underlying client and the origin of the fumes in respect of tre funds passed through their accounts (4) A Financial institution shall guard against establishing correspondent ‘relationships with high risk foreign banks such as shell benks or with correspancent ‘banks that permit their accounts to be used by such banks. (5) Staff dealing with correspondent banking aecounis shill he trained to recognize higher risk circumstances and be prepared to challenge the comresponddents over irregular astiviy whether isolated transactions or trend and to submit a suspicious activity report to the NFU. (6) A financial institution shall terminate an account with a correspondent bank that fails to provide satisfactory answers to questions including confirming the identity of custemers involved in unusual or suspicious circumstances, 118.—(1) Where a financial institution acquizes 2 business and accounts of another finencial institution, it isnot be necessary for the identity ofall the existing ‘customers to be re-ideniified, provided that all the underlying customers’ records are sequited with the business, but it shall carry out due diligence enquiries 10 ‘confirm that the acquired institution had conformed with the requirements of the provisions of these Regulations. (2) Verification of identity shall be undertaken forall the ransferred.customers who were not verified by the transferor, in line with the requirements for existing, ceustomers that open new accounts, where the (a) money laundering procedures previously undertaken have not been in. ‘accordance with the requirements of these Regulations, (®). procedures shalt be cheeled ; oF {e) cuatamer-revords are not available to the sequising financial institution.119.—(1) A receiving financial institution can be used by money Jaunderers in vespect of offers for sale where new issues are over-subscribed and their alloument is sealed down; the money launderer is not concemed if hare is @ eost involved in laundering dirty money. (2) New issues that trade at a discount will, therefore, still prove acceptable to the money launderer 3) Criminal funds can be laundered by way of the true benefivia)-owner of the funds providing the payment for en application in another person's name, specifically to avoid the verification process and to break the audit trail with the underlying crime from which the funds are derived. 120.—(1) A receivi financial institution shall obtain satisfactory identification evidence of a new applicant, inelucing such spaticants in a righis issue, where the value of single transaction ora series oF knged transactions is, $1,000 or its equivalent or as per the ered KY directive issued by the CBN, 2) Whete funds to be invested are being supplied by or on behalf ofa third party, the identifieation evidence for both the applicant and the provider of the ‘funds shall be obtained to ensure that, the audic trail for the funds is preserved, 121.—{1) Where an application is submitted, payment made by a broker or an intermediary getingas agent, no sieps shall be taken to verify the entity of the underlying applicants, the following standard procedures shall apply — (a) the locging agent's stermp shall be effixed on the application form or allotment Ieter und (P) application and accepeance forms and cover leters submitted by todging agents shail be identified ard recorded in the bark’s records, (2) The tarms and conditions of the issue shall state that any requirements {0 obiain identification evidence are the responsibility of the broker lodging the application and not the receiving finencial institution. (3) Where the original application has been submitted by a regulated broker, zo additional identification evidence shall be conducted for subsequent calls in cespect of shares issued and partly paid. 122. —Wherea broker or other introducer sa regulated person or institution (including an overseas branch or a subsidiary) stom a country with equivalent legislation and financial sector procedures, and the broker or introducer is subject to antismoney laundering lows o- regulations, then a weitten assurance shall be taken from the broker that he has obfained and recocted evidence of identity of any principal and underlying beneficial owner that is introduce 123.1) Where multiple family applications are escaived supported by ‘one chegte and the aggregate subscription price is US $1,000 ormoce: and $1,000, ‘or more for an individual pesson, the kdentificatlon evidence will not be required for— B 287 Yullorbiliy of Recsiving Bankers and ‘Agent Cawgeries of persone be erie, “Applications ecawved tivough Applications Received from Foreign Brokers, Mattiple FamilyB 288 Linke! Trams tons (e) a spouse or any other person whose sumame and address ate the same as those of the applicant who has signed the cheque: (6) a joint account holder; oF (c) an application ia the name of a child where the relevant company's Articles of Assciation prohibit the registration in the names of minorsind the member of full age on whose account the checue is drawn and who has signed the application form. (2) Identification evidence of the signatory of the financial instrument shall be required for any multiple family applications for more than $1,000 or its equivalent; or as per the tiered KYC diruetive issued by the CBN, where such application is supported by a cheque signed by someone whose nsme differs from that of the applicant, (2) Other monetary amounts or noreshall, from lire to time, be stipulated ‘by eny applicable money laundering legislation and guidlines. (4) Where an application is supported by a finaneialinstitutton’s branch cheque or brokers’ drafl, the applicant shall state dhe name and account number from which the funds were drawn — fa) on the front of the cheque : (4) on the back of the cheque together with a branch stamp ; or (e) atta 1g other supporting documents PART XIII—LINKED TRANSACTIONS, FoRRiGN ACCOUNTS aND INVESTMENT 124.—(1) Where a person hanging applications thet a number of single applications under $1,000 or its equivalent in different names are linked, such as payments from the same financial institution account apart from the multiple family applications above, identification evidence stall be obtained in respect of porties involved in cach single transaction, (2) Installment payment issues shall be treated as linked transactions where it fs known that total payments will amount to $1,000 or its equivalent or such other monetary amounts as may, from time to time, be stipulated by any applicable money laundering legisetion or guidelines: and either from the beginning orwhen 4 particular point has been reached, identification evidence shall be obtained (3) An application that is believed to be linked with money laundering shall be processed ona separate batch for investigation after alloument and registeation have been completed. (4) The retums with the documentary evidence shall be rendered to the NFIU eccordingly. (5) Copies of the supporting cheques, application formsund any repayment ‘cheques shall be retained to provide an audit trail until the receiving financial institution is informed by CBN, NFIU or the investigating officer thar che records are of no further interest.125.—(1) Where a customer wishes to open a Domiciliary Account (DA) ‘or make a wholesale deposit by means of cash or inter-bank transfer, a financial Institution shall obtain identification evidence in sevordance with the requirements, {or private ndividvals, companies or professional intermediaries opecating on behalt’ of third parties as appropriate. (2) Affiancial insticution shall satisfy itself thar the trensferring institution is regulated for money laundering prevention in its country af origin, 126.—(1) Precautions shall be taken in relation to requests to hold boxes, parcels and sealed envelopes in a safe custody, (2) Where such facilities are made available, the identification procedures ‘set out in these Reyulations shall be followed, deperiding on the type of individual involved or risks associated with the business relationship. 127, Where a customer's identity was not properly obtained as contained in) these Regulations and the requirements for Accoum! Opening Procedure, a financial institution shall re-establish the. customer's identity in line with the provisions of these Regulations 128. Identification evidence shall not be required where che applicant for bisiness is» Nigerian financial institution or person covered and pocsons regulated by the requirements of these relations, 129,—(1) Cash remittances and wire transfers either inward or outward or other monetary instruments that are undertaken against payment in eash for customers who do nol have an account or other established relationship with the financial institution such as walk in customers, present a high risk for money laundering purposes. (2) Adequate procedures shall be established to record the trensection end relevant identification evidence taken; and where such transactions form s regular part of the financiol institution's business, the limits for requiring identification evidence of LIS $ 1,000 or its equivalent for foreign transfers shall he observee. 130. ‘The proceeds of 4 one-off ransaction due can be paid to a customer or be further re-invested winere records of his identification requirements were obrained and kepr. In the absence of this, his identification requitemente shall b= obtained before the proceeds are paid to him or be re-invested oa his behalf in accordance with the relevant provision of these Regulations, 1BL—{1) The Cencral Bank of Nigeria may, as it considers appropriate, amend or revoke the provisfons of these Regulations which amendment or revocation shall be published in the Gazcte, (2) The Central Bank of Nigeria (Arti— Money Launidering/Combating the Financing of Terrorism (AMLICFT) Regulations, 2009 (as amended) is hereby revoked. B 289 Foreign Domiciliary A Customer's Identity Not Properly Obtained, Exemption fom derefienion Procedures ore-oit Cash Transaction, Remittances and Wire Teamsters. Re of income, Amendment revocation of these RegulationsB 290 Ineepreta G3) The revocation ofthe Regulations specified in subregulation (2) of this regulation shall nota‘ fect anything done or purported to be done ender or pursuant to these Regulations, 132.—In these Regulations- ‘AMCLO’ means Anti-Money Laundering Complaince Officer “Applicant for Business means a person or company seeking to establish a business relationship’ or an occasional customer undertaking a ‘one-off transaction whose identity must be verified a number of individual wi re Financial institution, but may or may’ "Batch wansjer ‘means a transter comprisin wansfers that are being sent to the sa not be ultimately intended for different persons "RDC” means Bureau De Change ‘Beneyfetal owner includes & natural person who ultimately owns er controls 4 customer or a person on whose behalf transaction is being conducted and the persons who exercise ultimate contro! over legal person ar arrangement Benejtciary ‘includesa natural person who receives charitable, humanitarian ‘or other types of assistance through the services of a Nen-Profit Organization (NPO), all trusts other than charitable or statutory permitted non-chavitable trusts which may include the setter, and a maximum time, known as the perpetuity period, normally of 100 years ; ‘Business Relationship’ means any arrangement between the financial institution and the applicant for business the purpose of which is to facilitate the carry ing out of transactions between the parties ona “frequent, babi.ual or regular’ basis and where the monetary value of dealings in the course of the arrangement is not known or capable of bei ined at the outset 5 (Cross-border transfer” means any: wire transfer where the originator and ‘beneficiary institutions ars located in different jurisdictions. This term also refers to any chain of wire transfers that has atleast one eross-border element: ‘Designated cetegortes of offences includes — (2) participation in an orgonized erininal group and rxeketeerings (b) terrorism, including terrorist financing (©) waffteking in human beings ané migrant smuggling : (@) secual exploitation, including sexist exploitation of children (&) illicit tatfieking in narcotie érigs and psychotropic substenses : (D illicit arms uatticking ; (g) illicit watficking in stolen and other goods : (®) comuption and bribery ; ( froud ;B291 () counterfeiting currency (© counterfeiting and piracy of product (0) environmental erime 5 (in) murdes, grievous bodily iajun i) (0) robbery or thett ; apping, illegal cesqalntand hostage-taking : (p) smuggling (including in relation *2 customs and exeise duties and taxes : (q) tax crimes (related to direct taxes and indices taxes); (9) extortion ; (s) forgery : (1) piracy 5 (1) insider trading and market snanipulation j and () all other predicate offences as contained in section 1S of Money Laundering (Prohibition) Act, 201 | (as amended) “Designated non-financial businesses: and professions” includes any institution as designated by the Minister of Trade and Investment, MLPA, 2011 (as amended) and CBN AMLICFT Reyulations, 2013 "Domestic transfer” means any wite transfer where the originator and beneficiary institutions are both located in Nigeria. This term therefore, refers tpaany chain of wire transfers that lakes place enlively within Nigeria's borders, even though the sysiem used to affect the wire transfer may be located in another jurisdiction “Falve declaration or disclosure” means failingto dcclare or, comaiseepresent the value of eurzency or bearer aegotigble instruments being transported, or a risrepresentation of other retevant data requested for by the authorities + 'FATF’ means Financial Action Task Force ; FATE Recommendations’ means the revised FATF Recommendations issued by the Financial Action Task Force ; ‘Financia! instinutions” include any person or entity who conducts as a business one or more of the following activities on behalf of a custorner— (a) acceptance of deposits and other repayable funds from the publi 5 (9) tenging + (©) Ginancial leasing : (a) the transfer of money or value 5 (2) issuing and managing means of payment such as credit and debit ards, cheques, travelers’ cheques, money orders and bankers" drafts, electronic moneyB 392 (/) financial guarantees and commitments + (g) wading in— (money market instruments (cheques, bills, CDs, cerivatives ei.) : (iA) foreign exeranae (Gi) exchange, interest rate and index instruments s (is) transferable securities ; and (9) commodity fitures trading + (A) participation in sezurities issues and the provision of financial seevices related to such issues (i) individual and collective portfolio management ; () safekeeping and administration of eash or liguid securities on behalf of other persons 5 (i) otherwise fnvesting, administering or managing finds or morey oa bbahalf of other persons ; () underwriting and placement of life insurance and other investment relaied ineurance ; and (mi) money ined Gurensy changing The list isnot exhau: 2004 ve bat subject fo the definition contained in BOFLA “Financing of terrorism? extends tall acts s0 defined under the Terrorism (Prevention) Act, 2011 (2s amended) and the Terrorism Prevention ((Freeving of International Terrorists Funds and other Related Measures) Rezulations, 2013; “Fundi® include assets of every kind, tangible or intangible, movable or immovable however acquired, legal documents or instrurtents in any: form, electronic or digital evidencing title or interest in such assets, bank eredits, trevelers cheques, bank cheques, money orders, shares, securities, bends, drafts and letters of credit; ‘Funds iransjer’ weansany vansaetion cerried out on behalf of an originator person, bot natural and fegal through. finsncial institution by electronic means with a view tomaking snamount of money available to z beneficiary person at another financial institution and the originator and the beneficiary may be the same person ; ‘Legal arrangement’ means express trusts or other similar legal arrangement ‘Legal persons’ meen hodier corporate, foundations, partnerships, or associations, or any similar bodies that can establish permanent customer relationship with a nancial instiution or otherwise own property :“Money oF value trangfon services (M/TS)" include Tinancial serviees that involve the acceptance of cash, cheques. other ntonetary insirumenis or other stores of value and the payment ofa corresponding sum in cash or other form to 2 bonoficiry by means ofa communication, message, transferor through a clearing network to which the MVTS provider belongs and trensections performed by such services can involve one ormore intermediaries anda final payment to a thied party, and may include any new gaymont methods. Sometimes thece services have tes to particular geographie regions and are described using @ variety of specific tems, including harwala, func and fei Nonprofivnoa-governmemal Orgonizaiion” means 3 legal en ‘organization that primarily engages in raising or disbursing funds for purposes such as charitable, celigious, cultural, educational, social or fiatemal purposes, 6 Tor the varying out of othe types of good works Originator’ means an account holder oF where there is no account, the person natural or legal tbat places the order with the financial institution t@ perform the wire transfer ; ‘one-off trunsaetion” means any Wansaction carried out other than in the course of an established business relationship. It is important to determine whether an gpalicant for business is undertakinga one-off ransaetion or whether the transaction is or will be a part of business relationship-as this can affect the identification requirements : Papuble yyeongh account” means correspondent accounts that are used directly by third parties to transact business on their own behalt Proceeds ‘meait any property or valve detived from or oblained, directly or indireetly, through the commission of an offence ‘Property’ means assets of every kind, whether corporeal or incorporeal, moveable or immoveable, tangible or intangible, and legal documents or instruments evidencing title to, or interest in such assets : ‘Risk means the risk of money laundering andior terrorist Financing ; 'SCUML means Special Contes Unit agains: Money’ Laundecing in the Federal Ministry of Teade and Investment Seilors Seitlors include pervons or companies who transfer ownersh their assats to trustees by means ofa trust deed and where the trustees have same discretion 28 to the investment and distribution of the trust's assets, the deed may be accompanied by a non-legally binding letter seuing out what the settlor wishes t9 be done with the assets: Shell hank’ means a bank thet has no physical presence in the country in which itis incorporated end licensed,and which is unaifiliated witha regulated finencial sarvies group that is subject to effective consolidated super B 293B 294 Citation. ‘Physical presence? means meaningtul mind and management Iecated within ‘country and the existence simply of a local agent or low level siaft does not constitute physical presence j “Terrorist” has the same meaning a8 in Terrorism (Prevention) Act, 2011 (as amended) : “Terrorist et ‘has the same meuning as in Tero (as-emended) ism (Prevention) Aet, 2011 Termarist argantzosion ‘has the sare meaning as in Tesrorisin (Prevention) ‘Act, 2011 (as amended); ‘Terravist property” includes a property which— (a), has been, 1 being oF is Tikely to be used for any act of terrorism ; (6) has been, is being (0) is the proceeds of an see of te1rorism ; and (oF i Tikely to be used by’ proscribed erganization ; (c), is provided or collected for the pursuit of or in connection with an act of terrorism ; “Those who fixsnee rervorign “include amy person, group, undertaking oF other entity that provides of collects, by any means, directly or inditeztly, funds or other assets that may te used, in full or in part, to facilitate the commission of tererist acts, er to ery persons or entities acting on behall of, ‘or a the direction of sueh persons, groups, undertakings or other entities and those who provile or collec: fnés or other assets with the intention thet they should be used or in the knowledge thet they are co-be ase, in full or in park, in order to eamy ovt terrorist nets ; ‘Trustees’ include paid professions or companies oF unpaid persons wna tole the assets fn rust fund separate from their own assets, They invest and dispose of them in accordance with the settior’s trust deed, taking account of any letter of wishes. There may also be a protector who may have power to velo the trustees’ proposals or remove them, cra custodian trustee, who holds the assets 10 the order of the managing irustecs “Unique identifier’ means any unique combination of letters, numbers or symbols that refers to a specific onginator ; andl Wire trunsfer' means eny transaction carried out on behal! of an originator bot naiural and legal person, through a financial instiuition by electronic means, witha view to making an amountof money available to a beneficiary person at another finaneval instivation; where the originator and the beneficiary may be the same person. 133, ‘These Revulations may be cited as Central Bank of Nigeria (Anti- Money Laundering and Combating Financing of Terrorism for Banks and Other Financial Instiuations in Nigeria), Regulations, 2013,SCHEDULES Senepous b NCTIONS AND Peal Sanerions Sections 15 ond 16 of the Money Laundering (Prohibition) Act, 201 (as amended) provide for fines or term of imprisonment or both uson ecmmidting money laundering or aiding aad abetting money laundering activities, The administrative sanctions outlined in this docunent will be imposed consequent upon the examination oF a financial institution and observance af eoniraventions by CBN Examiners and other agencies, In determining the sanctions to apply, all the eireumstances of the ease will be taken into account. including = —() Whether the contravention was deliberate. dishonest or reckless ; (6) ‘The duration and frequency of the contravention = ic) The amount of any benef eontravention gained or loss avoided due to the id). Whether the contravention reveals serious or sysiemic weaknesses of (he management systems or internal nus relating co all or part of the business. + and (e) The nature and extent of any AMLICFT erime facilitated, oceasionod or otherwise attributable (o the eontavention— (9) whether there are number of smaller issues, whieh individually may ‘rot justify oulminisiative sanetion, but which clo so when taken collectively’: and (2 Any potential oF pending criminal proceedings in respect of the contravention which will be prejudiced or barred il’ monetary penalty is imposed purstiant to the Administrative Sanctions Procedure, 2.—{a) How quickly, eifectively and completely the financial institution or person concerned in ts manoyernent brought the coatravention tothe attention of the CBN or any other relevant regulatory authority (h) ‘The degree of co-operation with CBN Examiners or other agency provided during the examination : (c) Any remedial steps taken since the contravention was identified, including: taking disciplinary action against stalYinwalved (where approptiate). ‘addressing any systemic failures; and taking action designed to ensure hat Similar problems do not arise in the future : (a) The likelihood thet the same type of contravention will recesut if no administrative sanction is imposed ; and (@) Whether the contravention was admitted o# denies, B 295 Nature nd of rote “excuplionts) by Tre eanduet of the snl Fancial institution be per eoncernedin is manag after the coausertion,B 206 3. The previous cecard of the finaneial institution or person eoneerned in its management > () Whether CBN has taken any previous action resulting in a settlement, sametions or whether there are relevant previous criminal convictions ; (A) Whether the financial institution or person concerned in its management has previously been requested to take remedial action : and (c) General compliance history General 4-—(a)_ Prevalence of the contravention ; considera sks (A) Action taken by CBN in previous similar cases : and (©) Any other relevant consideration Banaue, ‘The penaties thatthe CBN shall apply for contraventions of the MLPA 201 | (as amended), Terarism Prevention Act (TPA), 2011 (as amended). Terrorism Prevention (Freezing of Intemetional Tersorists Funds and Other Related Measures} Regulations, 2013 and CBN AMLICRT Regulation 2013 (comprise revocation o° suspension of the operating license, non-monetary and Financial peneliies) shall be 2s permitted by BOFIA or any osher relevant las or any regulations issued by ths Attomey General of the FederationSCHEDULET Ixrowanarios 10 Estagtisit IDENtiry 1—(1) For naturel percons, the following informetion shall be obtained, whete pplicable (0) legal nume and any other names used (such as maiden name) ; (A) pesmanent address (full address shall be obtained and the use of post ‘office box: number only, is not suificiene) : (c) ‘telephone number, fins number, and e-mail address ; (a) dacesand place of birth ; (e) nationality (/) occupation, publi¢ position held snd numa of emplayer + (g)_ an official personal identfiestion nomber or other unique ideatt contained in an unexpired ofFeial documen such as passport, identification card, residence permit, social security ecards or drivers’ livence that bears a photograpis of dhe customer; () ype of account and mute of the banking relations (A sigsiatur 2) The Financial Inatution shall veviy the information referred to in sph | of this Appendix, by’ at least one of the following methods— pare (a) confining the date oF bieth from an official document (suchas bist cotifieate, passport, identity eard, social security records); (2) confirming the permanent address (such qs uiility bill, ax assessment, bank statement, « letter from u public authority) [c) contacting the customer by telephone, by letier oF by e-mail te conti the information supplied sfler an account has been opened (such us a discomneeted phone, returned mail, or ineorreet e-mail addtess shall warrunt Further tavestigation): [c) confirming the valteity of the official documentation provided through ertifieation by on authorized person such as embassy official, notary public: (3) The examples quoted above are not the only possibilities. There may be ther documents of an equivaleat rare which mey be produced as satisfactory evidence of customats’ identity. lion (4) A Financial Instiution shall apply equally effective custormer dex procedures for non-face-to-faoe customers as for those aveilable for interview. (3) A Financial Institution shall make an initial assessment ofa customer's riak profile from the information provided and particular attention shall be focused! on those customers identified as having a higher risk profile and any additional inquiries made or information obtained in respect of those customers shall include B 297 Natural Persons.B 298 (e) evidence of an individual's permanent address soughs through reference agency search, oF through lndependent verification by home ¥ (8) personal reference by an esisting customer of the same institution (c) prior bank reference and vontact with the bank regarding the customer 5 id) source of wealth ; and (e) verification ofemployment and public position fneld where appropriate, (6) The customer seceptence poliey shall not be so restrictive te amount to denial of aceess by the general public to banking serviees, especially for people who are aaneially or socially disadvantaged, Insitations 2, The team “Institution ineludes any entity that is nota natural person ancl jn considering the customer idenvifieution guidance for the different types ef institutions, particular attention shall be ven to the different levels of risk involwed. Corporate —{1) For corporat entities such as corporations end partnerships. the Entities: following information shall be obtained— (a) name ofthe institution ; (p) principal place of the institution's busin operations: (©) mailing address of dhe institution, (a) sontaet telephone and fay numbers fe} some form Of official ierication number, if available such os tox Identification number : (/) the original or certified copy of the certificate of ineorporath memorandum and articles of association § and (g) the resolution of the board oF directors to open an account an identification of those who have aulliority ¢o operate the aceount ; and (h) nature and purpose of business ard its legitinnaey, 2) The Findneial Institution shall verify the information referred fo in paragraph 7(1) of this Scheclile by al-leasi one oF the following, methods (a) for established eoiporate entities, reviewing a copy of the lates! zeport and audited accounts, itavatiable (2) conducting an enquiry by 4 business informacion service or an undertaking froma reputable and known fem of lawyers or aseountants confirming the documents submive ; (c)- undertaking a company search and/or ther eommeretal enguities to see thatthe institution has not been, or isnot in the process of being divsolved, siruck off, wound up or terminated ; (q) utilising an independent infarreation veriffention prowess, such as accessing public and private databases +(e) obtaining prior bank references : () Visiting te woopomate entity § end () comaeting the eoxporite entity by telephone, mail or e-mail (3) ‘The Financial Inscitution shall wlso take reasonable steps to verily the domtity and reputation oF any ayent that opens an account on behalf ua corporate customer, if that agent is not an office of the eomporate eustornes 4—(1) For Corporations or Parnerships the princinal gudanes isto look bochind the iusttation to identify those whe have eortrol over the business and the company’s or partnership's assets, including those who lave ultimate control 2) For corporations, particular atention shall be peid wo sharehelders, signatories or others who inject significant proportion of the capital or Finaneial support of exercise control and whete the owner is enother comonate entity oF tous. the objective is to undenake wasonable measines to look behind that company ify the identity of the principals. (5) What constitutes control for this purpose shall depend on ite nature of a cémpany and may rest in these who are mandated to manage the funds, accounts or investments without requiring further autherization, and who would be in a position 10 override intemal procedures and control mectanisins (4) For partnerships, each partner shall be identified and it shall identity immediate family members that liave ewnership contro, (5) Where a company is listed on a recognized stock exchange or is a subsidiary of listed company, the company ftsell' may he considered to be the principal to be identified and where a listed company is effectively controlled by si individuel, group of individuals, another corporate entity oF trust, those in contro! of the company are considered to be principals and shall be iden sccoringly 3.—(1) ‘The following information shall_be obtained in addition to tat roquited to verily the identity of the peineipals in respect of Retirement Benefit Programmes, {utial or Friendly Societies, Cooperetives and Provident Societies, Charities, Clubs aud Associations, Trusis and Foundations and Professional Intermediaries (a) name of eecount : (2) iling address: (e) contact telephone and fax numbers : (a) some Form of official identification nimber, such as tix identification, snimber : ()_ description of the purpose or activities @F the account holder ay stated in.9 formal constitution ; and (/) copy af documentation contirm: older such as repisier of charities, the legal existence af the account B 299 Corporation Parinershin. onner Types of Inston,B 300 Mutt oe rien. Cooperative and Provitet Sout Charis, Chubsind ‘Trusts and Fourltions, Professional ees (2) The Financial Institution shall verify the infaimnation referred te in paragraph 6 (|) of this Schedule by at least one of the following (a) obtaining an independent undertaking from a reputable and known fitm of lawyers or accountenis confirming the Gocumients submitted ; (b) obtaining prior bank reférences ; and (c) accessing public and private dotabases or officio! sources 6. Where an cecupational pension programme, employee bene ust or share option plan is an applicant for an accourt, the trustee and any other person who has control over the relationship such as the admin‘strator. programme manager, an account signatories shall be consideredas principals and the institution shall ake steps to verily their identities. 7. Where Mutual or Friendly: Cooperative und Provident Societies is at applicant for an account, the principals to be idensilied shal! be considered to be these persons ‘assets, This offen ineludes board! members, executives and account signatories. nancial {sing control of significant influence over the organisition 8.—(1) In the ease of accounts to be opened for charities, clubs, and societies, he financial institution shal! like reasonable stops co identify ané verify at least two signatories along with the institution itself, The prineipals who shell ‘be identified shall beconsidered to be these persons exercising control orsignificant influence over the organization's assets These include mempers of the governing, boty oreommittee, the President, board members, the treesurer, and all signatories, (2) Inall eases, independent verification shall be- obtained that the persons involved are trae representatives of the institution and independent eontTmnation shall also be obtained of tre purpose oF the institution, 9.—(1) When opening an aceount for a Trust, the Mnancial insciution shalt ake reasonable steps to verify the trustee, the settjor of the srust (ncludi persons settling assets into the trust) any protector, beneficiary and signatories saseofa [2) Benetictaries shall be identified when they are defined. In the Foundation, steps shall be taken t9 ver! and the beneficiaries 10.—{1) Where 0 professional iniermediary opens. client aceoisnton behal of a single client. that client shall be identified and Professional intermediaries shall open “pooled” zecounts on behalf of a number of entities: anel where funds held by the intermediary are not co-minssled but there ure “sub-xecounts” whieh shall he attcibutable to eech beneficial owner. all heneficial owners of he account held by the intermettiary shall be identified. the Founder, the managers or directors (2) Where the funds are 2c-mingled, the financial institution shall Look “vould tothe bene cia -owners but there maty be circumsiantees that the Financial Institition may not Jock beyond the intermediary such as when the intermediary jg subject to the same due diligence sundards in respect of ity elient base as the Financial institution.(3) Where suci circumstances apply and an account is opened foran open brelosed ended investment company (nil trast oF limited partnership) also subject to the same due diligence standards in respect of its client base 2s the financii institution, the Following sball be considered as prineipals and the Financial Institution shall take steps to identify: (a) the fund tself 5 (5) its direstors or any esntrlling board, where it is @ company : (e) its teustee, where i is a unit trust: (1) its managing (goneral) parte, where it is limited perinership (e) aceaunt signaion (0) any other person who has conirol aver the relationship suchas fund sand administrator or manager. (4) Wh cles ure involved, the same steps shall be taken os in above where it is appeopriate £0 do so and in addition, all reasonable steps shall be caken to verify the identity of the beneficial owners of the funds and ‘of thase who have control over the funds © other investment vel (5) Intermediaries shall be treated as individual customers of the Financia institution and the slanding of the iniermediary shall be separately verified by obtaining the appropriate inarmetion itemized above. B301SCHEDULENL Mossy: LAU praise ann Teasonst Feeancing “Rip Flas” Sapiens 1, Potential Transactions which may be referred to a “Red Flags" shall be Tovssions” gategorized as follows Hg (o) potential transactions porcsived or identified as being suspicious which simong others shall inokide (i) tonsaciions involving high-risk countries vulnerable to money Jauindering, subject to this being contirmed ; (2) transactions involving shell companies ; (ii) transactions with correspondents that have bees identitied a3 risk: (iv) large transaction uctivities involving monetary instruments such a traveler's ehecues, bank deufis: money order particularly those that sre serially numbered : and (0), transection activitios involving amounts that are just below the stipulated reporting threshold or enquiries that appear to testan institution's vn intemal nlonitering threshold or controls. (b) money jaundering osing cesh trsnsactions which among others shall inckde (i) Sigritteant increases in cish deposits of an individual oF eapossie entity without apparent cause, particularly where such deposits ere subsequenily srausierted within a short perivd out of the wecount 10 estination not normally assosiated with the eustomer (4H) onus a enlity whose normal husiness is wunsacted by cheques and other no instruments it) t (iv) customers who deposit cash through nary deposit slips sue chat the amount of each deposit is relatively small but the overall jval is quite siguiticant sash deposits made by an individual or # corporate ‘cash ‘of eash into othar currencies ; (v) customers whose deposit instruments contain forged currency (i) customers who regularly deposit cash (6 cover applientions Tor Dank deatts (ui?) customers making large and frequant cash deposits with cheques always drown in-favour of persons not ustally associated with their type of business: (vidi) customess who request {0 exchange large quantities of tow denomination banknotes for those of higher denominations :(ie) branches of banks Usual, even alter allowing for seasonal Factors ; al tend to have far more eush transceiions than ind (i) customers transferring, la locations with instructions for payment in cash, € sums of money to oF fom overseits (c)_ money thundering using deposit accounts, especially weve they ave inconsistent with a customer's legate business, which among others shall include eustomer that ified (0) minincal. vague or fielitious information provided by the money depesited in che bark is wot in w pastifon to be (i) lack of reference or identification in support ofan account opening application by & person who 's unable or unwilling Lo provide the required documentation ; ii)» prospective customer who does not have @ local residential or business address and there is np apparent legitimate reason Jor epening, 3 bank account : (ie) customers maintaining muliiple accounts in w bank of ih different banks for no. apparent legitimate reason or business rationale whether the stccounrs are in the same names or have different signatories : (0) customers depositing or withdrawing lange amounts of eash with no apparent business source or ii manner inconsistent with the nature and volume of the business ; (r accounts with large volumes of activity but low bala Trequently overdrawn positions : (oii) customers making large deposits and maintaining lange balances with no apparent rationale ; (lit) customers who make numerous deposits into wecounts und soon thereafter request for electronic transfers or cash wanseetions fom those accounts to other accounts, loeally of intemationally, leaving only small balances which eypically are transactions that are not consistent with the customers’ legitimate business needs, (72) Sudden and unexpected increase in uccount activity orbalinee arising fiem deposit of cash and no-cas terns whilisypiealy re ascounts opened ‘with small amounts but subsequently increase rapidly and significantly ; (4) accounts: used as temporary repositories Por funds that are subsequently transferred outside the bank to foreiga accounts which accounts offen have low aetivity (ai) customer requests for early redemption of een leposit or bolber invesiment soon afier the purchase, with the customer being willing to suffer loss of intezest or incur penalties for premature realization af investment : B 303B 304 (cif) customer requests for disbursement of the proceeds of certificates of deposit or other investments by multiale cheques. each below the stipulated reporting threshold ; (sili) retail businesses which deposit many cheques into their accounts but with little or no withdrawals 19 meet datiy business needs : (xiv) frequent deposits of large amounts of eurreney; wrapped in currency steaps that have been stamped by other banks (vv) subsiantial cash inust of escrow aecounts eposks by professional customers into client, (vi) customers who appear to bave ageounts with several institutions within the seme locality, especially when the mstitution js aware of2 regular eonsolidatian process fram such accounts prior to a request [er onward transmission of the funds ; vii) large cash withdrawals from a previously dormant o¢ inactive account, or from an account which Ines just received an unexpected large credit from alproad (awit greater use of safe deposit facilities by individuals, parieularly the use of scaled packeis which are deposited and soon withdrawn ; (xix) substumiel increase in: deposits of eash or negotiable instruments by a professional firm or company, using client accounts or in-house company or trust accounts, especially wher® the deposits are promptly transferred between other client company and trust accounts ; (os) large numbers of individua without adequete explanation : making payments into the same account Gx!) high yelosity of funds that reflects the large volume of money flowing through an account! (exif) an adeount opened in the name ofa money changer that reeeives deposits and (Gail) on account operated in the mame of an olf strictired movement of funds hore company’ with (dh wade-based moiey laundering which among others shall inelude— () over and under-invoicing of goods : (id) multiple invotcing of yoods and services | ii) over and under-invaicing of goods and services ; () falsely daseribed goods and services and “phantom shipments whereby the exporter does not ship any goods al all afler payments had heen made, particularly ander coufumed letters of eredit ; (0) transfer pricing : (vi) trenseetion structure which appear unnecessarily complex and designed to obscure the true: nature of Une trensuetion(of) items shipped which are inconsistent with the nature of the customer's notmal business and transaction which lack an obvious evonomic rationale; (ov) customer requests payment of proceeds to an unrelated thicd pa Gis) signiticanely amended leters of ered without rexsonable justification or changes to the beneficiary or location of payment. {e) lending activities which among ethers inciude : (© exstomers who repay problem loans unexpectedly: + Gi) 4 customer who is reluctant o¢ refuses to state the purpose of 3 lou ‘or the Source of repayment or provides a questionable purpose or source of lepay ment 5 (ii). loans secured by pledued assets held by third parties unrelated 10 the borrawer (iv) loans secured by deposits or other readily: marketable asset suc as seeuricies particularly when owned by apparently unteiated th partic : (2) loans made for or pais on behall'of a eid party with no reasonable explanation sand {of} loans lacking a legitimate business purpose, provide the bark with znificant les for assuring minimal risk, o° tend to obscure the movement fof funds ie. loans made to @ harrewer and immediately sold to am entity related to the borrower) + (A) terrorist Financing “rad Mags” which among others include (() persons involved in ewrreney transyetions who shore an addeess or phone number, particularly when the address is also a business loeation oF oes nol seem 10 correspond to the stated occupation such as. student, unemployed, or selFemployed ; (ii) Finencial transaction by a nonprofit or charitable organisation, for which there appears to be ne logical economic purpose oF for which there uppears to be no link between the stated activity of the organisation and other parties in the transaction (ii) asafe deposit box opened on behalf of a commercial entity when the business aetivty of the: customer is unknown or such activity does not appear 10 justify the use of & safe deposit box ; {iv}, where large numbers of incoming. or outgoing funds transfers take plage through a business account, and there appears to be no logical business cer other economie purpose Tar the transfers, particularly when this setivity involves designated high-risk locations consistent with the (0) where the stated oeeupation of the eustamer is type and level of ecount ac B305(w) sshote funds transfer does not include information on the originator, or the person om whose behalf the transaction is conducted, the inclusion of whieh should ordinarily be expected : (oi!) multiple personal andl business accounts or the aecounts of nenprof organisations or charities are used ¥o collect and funnet funds to-a smal hhurnber of foreign beneficiaries ; (oti) foreign exchange transactions which are performed on behalt'ol'« Gusiomer by & thied party, followed by funds transfers to locations having ‘no apparent business connection with the eustomer or t high-risk enuntries| and Gs) funds yensrated by «business owned by persons ofthe sume origin ‘of hy # business that involves persons of the same origin from desienated hah-tisk countries, (e) other unusual or suspicious activities which among others include (i) where employee exhibits a Lavish Tifestyle that cannor fischer salary (ii) where employee falls particularly in private banking ssttied by rnply with aporoved operating waidelines, ii) where employee is reluctant to alee a vacation + (i¥)_ sale deposit boxes or safe custody accounts opened by individuals who do not reside or work in the institution’s service area despite the availability of such services at an institution closer (0 them (0) customer rents multiple safe deposit boxes to store lau amounts oF tcurveney, monetary instruments, or high value assets avaiting conversion to currency, for placement in the banking system ; (v) customer uses'2 personal aecount for business purposes : (vii) where official embassy businass is conducted through personal aveounls (sii) whore embassy accounss are Funded through substantial currency transzetions ; and (is) where enibassy accounts directly fund personal expenses of foreig rationals, Mapb: ot Abuja this 29th Day of August, 2013. Sawosi Lantoo Sanusi Governor of the Ci af NigorieB 307 ‘so1.awarony’ Nore (This note baes rot form par of hese Reculations dul is tended to explain its parparts) These Regul fons seek 10 ensure that the Banking Indusiry and other financial instiutions comply with subsisiing Anti-Money Laundering and Combaving the Financing of Terzosism Lewislation,