New Bank Promoters Must Disclose Sources Of Fund, CBN Voices Out

When requesting a licence from the Central Bank of Nigeria, promoters, shareholders, and owners of financial institutions are now required to disclose the sources of their wealth.

This is being done to prevent the establishment of financial institutions in the nation with the help of laundered cash or inputs from terrorist organisations.

At the same time, the nation is dealing with issues like terrorism, banditry, kidnapping for ransom, and an uptick in state-level insecurity.

The new stipulation is provided in the Guidelines for ‘Licensing Banks and Other Financial institutions in Nigerian on Anti Money Laundering, Combating Financing Terrorism and Countering Proliferation Financing of Weapons of Mass Destruction.’

CBN, in a circular issued by the director, Financial Policy and Regulation Department, Chibuzo Efobi, said the guidelines was part of efforts at promoting compliance with AML/CFT/CPF laws and regulations. The guideline represents the minimum requirements for licensing new financial institutions.

The guideline, which is applicable to both new and pending request for license, requires that promoters of financial institutions are required, in addition to complying with other licensing requirements specified in relevant institution-type guidelines, to submit with the application for Approval-in-Principle, a completed and personally signed beneficial owners’ declaration Form and notarised statement of net-worth for all beneficial owners.

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