CBN releases guideline for establishment of banks, othersCBN releases guideline for establishment of banks, others

A set of guidelines for the creation of banks and other financial institutions in Nigeria have been published by the Central Bank of Nigeria (CBN).

The apex bank outlined a number of prerequisites for the creation of financial institutions in a directive that was announced on Friday and was signed by its director of the financial policy and regulations department, Chibuzor Efobi.
The CBN stated that the paper would support its anti-money laundering (AML), counter proliferation financing of weapons of mass destruction (CPF), and combating the financing of terrorism (CFT) operations.

The guideline read:

“In furtherance of efforts towards promoting compliance with Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing (AML/CFT/CPF) laws and regulations, the Central Bank of Nigeria (CBN) hereby issues this Guideline for use by individuals and entities applying for a licence to operate as banks or other financial institutions.

“This Guideline represents the minimum AML/CFT/CPF requirements for licensing of new financial institutions and should be read in conjunction with applicable AML/CFT/CPF laws, regulations and other CBN licensing requirements applicable to the institution type for which the licence is sought.

“The scope of this guideline covers both new and pending applications (including those awaiting final approval).”