CBN Says New Bank Owners, Shareholders Must Disclose Sources Of Funds

Owners of financial institutions, promoters and shareholders are now mandated to henceforth disclose the sources of their wealth when applying for a license from the Central Bank of Nigeria (CBN).

According to the CBN, this is in an effort to ensure that laundered funds or terrorism inflows do not find their way into establishing financial institutions in the country, as the country is grappling with corruption, terrorism, banditry, kidnapping for ransom, and increased insecurity across the states.

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.’

According to a circular issued by Chibuzo Efobi, the director of the Financial Policy and Regulation Department,  the guideline is part of an effort to promote compliance with AML/CFT/CPF laws and regulations. 

"The guideline, which is applicable to both new and pending requests for a 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 notarized statement of net-worth for all beneficial owners."