CBN mulls deployment of security agents to monitor banks’ recapitalisation process

The Central Bank of Nigeria (CBN) has resolved to deploy law enforcement agencies to monitor the recapitalisation process in the banking sector.

The apex bank on Thursday raised the minimum capital base for the various tiers of the banking sector.

It raised the minimum capital base for commercial banks with international standing to N500 billion and N200 billion for national banks.

The CBN also set a N50 billion threshold for regional banks, among other measures.

In a circular titled: “Review of Minimum Capital Requirements for Commercial, Merchant, and Non-Interest Banks in Nigeria,” signed by its Director of the Financial Policy and Regulation Department, Mr. Haruna Mustafa, on Friday, the CBN mandated banks to do anti-money laundering screening to prevent the influx of illicit funds into the sector.

 

READ ALSO: CBN pegs capital base for Nigerian banks at N500bn

The circular read: “The CBN has robust anti-money laundering regulations which will be strictly enforced, with the active collaboration of relevant law enforcement agencies. In addition, the CBN will require all banks to ensure that appropriate and effective anti-money laundering screening/checks (Know Your Customer, Customer Due Diligence and Suspicious Transactions Monitoring, etc) are conducted.

“The CBN will actively monitor and supervise the recapitalization process to ensure compliance with set guidelines.

“This will involve the conduct of on- and off-site reviews, verification of capital, periodic interventions when necessary, and broader stakeholder engagements.”

By: Babajide Okeowo

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