The Central Bank of Nigeria (CBN) has released the Guidelines for Licensing of Banks and Other Financial Institutions on Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing of Weapons of Mass Destruction (the “Guidelines”). The Guidelines were released via a circular FPR/DIR/GEN/CIR/001/061 directed at Banks and Other Financial Institutions (OFIs) and their promoters under the regulatory purview of the CBN. The Guidelines prescribe the minimum AML/CFT/CPF requirements for licensing of new financial institutions.

The objectives of the Guidelines are:
i. To guide promoters in complying with AML/CFT/CPF requirements in their licensing applications

ii. To ensure proceeds of crime are not used in the establishment of financial institutions,

iii. To ensure verifiable identification of beneficial owners of the financial institution,

iv. To ensure that financial institutions are not in control of criminals, and

v. To ensure that preventive measures are put in place against money laundering (ML), terrorism financing (TF), and proliferation financing (PF).

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