CBN releases circular; says PSBs are to report suspicious transactions

As a method of intensifing the fight against corruption, The Central Bank of Nigeria (CBN) has directed that payment service banks (PSBs) within the country report any transaction that one across as suspicious to the Nigerian Financial Intelligence Unit (NFIU).

This directive is off a circular released on Thursday, the 9th of June with the title:  “Supervisory framework for Payment Service Banks”, on Thursday.

Banks that provide general bank services to individuals as well as small businesses as directed by the CBN are considered PSBs.

The circular further mentioned that PSBs are responsible for identifying transactions that have even the slightest trait of suspicion of involment with financing terrorism, terrorism or any relation to it, crime(taxcrime, cybercrime) or related to taxes, direct or indirect.

They are to carry out an investigation or several investigations and immediately report the outcome of the investigation to NFIU. This is in accordance with  the provision of section 6(2)(c) of Money Laundering (Prohibition) Act, 2011 (as amended) which says that regardless of the amount involved, all transactions with any trace of suspicion must be reported.

 PSBs are therefore authorized to flag an account red if said account is connected to a politically involved person and has been suspected of possible suspicious transaction.

PSBs that are caught aiding in anyway, these suspicious transactions and the person (s) or business(es) involved will be liable to pay a fine of not less than 10milloin Naira or will be banned for a period of five years or indefinitely.

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