The Central Bank of Nigeria (CBN) has cautioned banks over transactions with customers and businesses linked to the Benin Republic to avoid been used as conduit for money laundering and illicit drug deals.
Director Banking and Supervision Department, CBN, Mrs Asuquo Evelyn gave this warning in a circular to all banks in the country
She said the warning was necessary because the apex bank had received intelligence reports from competent sources that the Benin Republic is becoming a hub for illicit drug trade in West Africa.
The circular said: “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.
“In order to ensure that Nigerian banks are not used as conduits for laundering such illicit funds, it has become imperative to intensify the now-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.”
Meanwhile,the Central Bank of Nigeria (CBN) says it will build an ecosystem allowing everyone easy access and use of the e-Naira wallet even for small transactions.
The branch controller, CBN Lagos, Kotor Godfrey, who disclosed this at Kairo market, Oshodi Lagos,said that being the second Central Bank Digital Currency (CBDC) fully open to the public after the Bahamas Sand Dollar, the digital currency is gaining traction with the projection of its download to 10,000 in the second quarter of 2022 from the 7,300 recorded in the first quarter of the year.
He explained that in order to ramp up awareness and adoption of the e-naira, the apex bank, in collaboration with Bizi Mobile and Oshodi Market Leaders commenced sensitization and activation of e-Naira Wallet.
He said: “Available data showed that consumer wallet downloads have so far been the most downloaded over the merchant wallet, but transactions between Person-to-Bank and Bank-to-Person have constituted about 90 per cent on the platform”
Godfrey added that the sensitisation exercise offers business owners, market men and women the opportunity they have been waiting for to understand the technology and business of e-naira in order to enjoy its benefits.
He said the e e-naira also known as the giant naira is the first in Africa and among the earliest in the world.
“It was designed with you in our mind and there is now, enough room for anyone to enjoy cheap, secure and efficient banking services. With e-naira there is no room for fraud or counterfeit.We give you the assurance that it is very secure and that you can do business without receiving counterfeit. It is designed in Nigeria and can be received any where in the world,” Godfrey stated.
Speaking, the secretary of Oshodi Market Traders Association, Obinna Ume commended the bank for the noble initiative, adding that if the e-naira is well adopted, it will boost their trade in terms of seamless transactions.
According to him, the e-naira will eliminate the challenge of failed transactions or situations where business hours are wasted because monies are transferred with evidence of debit alerts but the receiver could not see credit alert which keeps both parties waiting.
