Vet financial transactions relating to Benin Republic, CBN warn banks

The Central Bank of Nigeria (CBN) has charged commercial banks to carry out due diligence on transactions relating to Benin Republic as the country is increasingly becoming a drug trafficking channel and consumption centre in the West African region.

CBN gave the warning in a circular sent to Nigerian banks titled “Need to Implement Enhanced Measures for Customer Onboarding and Due Diligence on Existing Accounts and Transactions Related to Benin Republic,” which was signed by Asuquo Evelyn on behalf of the Director, Banking Supervision of the CBN.

The CBN called for additional measures such as re-classify related customers and conducting Enhanced

Due Diligence.

The apex bank also asked Nigerian banks to strengthen their Know Your Customer (KYC) and Customer Due Diligence (CDD) policies, as mandated by regulation.

The circular reads “We write to bring to your attention an intelligence report availed to the Central Bank of Nigeria (CBN), which indicated that the Benin Republic is increasingly becoming a drug trafficking transit and consumption hub in West Africa.”

CBN advised that for Nigerian banks to avoid involvement in illicit transactions, due diligence must be carried out.

With the directive, Nigerian banks are expected to carry out Enhanced Due Diligence to be applied to funds transfers to and from Benin Republic and the purpose of the transfer must be determined.