New anti-laundering, terrorism rules take effect
BANKS and other financial institutions are required to identify, verify and keep adequate records of the real beneficial owners of business accounts and other special purpose vehicles.
This was the crux of a new guideline released at the weekend by the Central Bank of Nigeria (CBN). The new guideline on identification of ultimate beneficial ownership of legal persons and legal arrangements takes immediate effect.
The apex bank stated that the guideline was necessitated by the growing use of corporate vehicles, such as companies, trusts, foundations and other types of legal persons and legal arrangements by criminals to cover up and convert the proceeds of crime.
According to the CBN, the new guideline strengthens Nigeria’s position in line with the Financial Action Task Force’s (FATF’s) demand that countries “ensure that adequate, accurate and timely information on” beneficial ownership is accessible to check corporate vehicles from being abused in the financial system.