CBN warns banks over Benin Republic transactions, says neighbouring country drug trafficking hub

Olaolu BilauMay 5, 2022

1 minute read

The Central Bank of Nigeria has warned Nigerian banks on transactions relating to Benin Republic.

The apex bank in a circular dated April 11 signed by Director of Banking Supervision Department, Asuquo Evelyn, directed banks to implement enhanced measures on existing accounts and transactions relating to the neighbouring country.

According to the CBN, intelligence reports from competent sources have revealed that the West African country has become a drug trafficking hub.

“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,” the circular reads.

“In order to ensure that Nigerian banks are not used as conduits for laundering such illicit funds, it has become imperative to intensify the know-your-customer (KYC) and customer due diligence (CDD) measures in your bank as required by regulation.

“Consequently, you are required to implement additional measures on customers and business relationships linked to the Benin Republic. You are also required to re-classify related customers and transactions as high risk and conduct enhanced due diligence (ED) procedures accordingly,” the apex bank said.

Also speaking with The Cable, Director of Corporate Communications, CBN, Osita Nwanisobi, said the measures are aimed at strengthening Nigeria’s anti-money laundering and combating the financing of terrorism (AML/CFT) framework.

“Yes, the circular was issued by the banking supervision department of the CBN. This was based on intelligence reports from competent sources that the Benin Republic is becoming a hub for illicit drug trafficking,” Nwanisobi said.

“Hence, the advisory to banks to intensify their KYC/ CDD measures in order to ensure that our financial system is not used as a conduit for money laundering and terrorism financing. All of these are aimed at strengthening our AML/CFT.”