The Central Bank of Nigeria (CBN) has ordered banks and other financial institutions to ensure regular monitoring and screening of accounts belonging to Politically Exposed Persons (PEPs) in Nigeria.
The apex bank instructed that the accounts of such persons should be subject to periodic review and that the frequency of such reviews should be determined by the risk of the customer and documented appropriately.
This was contained in a circular to banks and other financial institutions on Friday.
In the circular signed by the Director of Financial Policy and Regulation Department, Chibuzor Efobi, the CBN said transactions and activities should be scrutinised for money laundering and terrorist financing among other risks.
Emphasising the essence of the directive, the CBN said such persons posed a high risk of money laundering, financing of terrorism and proliferation financing due to the tendency for the individuals holding such positions to misuse their power and influence for personal gain or advantage to themselves, close family members and associates.
