Connect with us

E-Financial

Terrorism Financing: NAICOM Beams Searchlight on KYCG of Insurers

Published

on

Kindly share this post

National Insurance Commission (NAICOM) has started sending inspectors to insurance firms to ascertain whether they have been complying with the provisions of the law regarding money laundering and terrorism financing.

This is in compliance with the directive by the Nigerian Financial Intelligence Unit (NFIU) on terrorism financing; and the provisions of the Money Laundering (Prohibition) Act 2004, and the Know Your Customer Guidelines (KYCG) issued by the commission.

This measure is aimed at protecting insurance companies from reputational risks, shield them from operational and other risks and help them to establish reliable customers’ database in-house.

Sources close to NAICOM told to Daily Independent, that the commission has been sending inspectors to insurance firms to ascertain whether they have actually been complying with the provisions of the law regarding money laundering and terrorism financing.

NAICOM inspectors were trying to find out whether insurers have actually been establishing identity of customers, taking evidence of identification, carrying out certification where necessary or conducting physical inspection and creating a record of the evidence as required.

All insurance broking and loss adjusting firms are to display visibly in all their operation centers nationwide the provisions of the Money Laundering Act regarding their duty to file Cash Transaction Reports (CTRs) and Suspicious Transaction Reports (STRs) with the NFIU and forward copies to NAICOM.

Unlike in the past when insurers could just enter into a contract with anyone, the operators must now confirm the identity of their customers in compliance with the provisions of the KYCG aimed at fighting against money laundering and terrorist-financing.

KYCG “is the due diligence that financial institutions and other regulated entities must perform to identify their clients and ascertain relevant information before entering into financial relationship with them.”

The rationale for KYC requirements on insurance companies springs from the fact that it is now a legal and institutional requirement which protects institution from legal and reputational risks.

The insurance operators are also required to conduct KYCG checks before any business relationship is established, when an amendment to the original contract is being effected, and when previously lapsed policies are being revived.

The KYCG is mandatory for insurance companies in situations when they are dealing with any client for the first time and where a client insists on secrecy or refuses to provide requested information without a reasonable explanation.

Besides, it is necessary to conduct a KYCG checks on transactions where a company is worried about the honesty, integrity, identity or location of a client


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

Published

on

Kindly share this post

“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


Kindly share this post
Continue Reading

E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

Published

on

Kindly share this post

Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


Kindly share this post
Continue Reading

E-Financial

CBN Urges Banks to Expedite Action on Recapitalisation

Published

on

Kindly share this post

Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


Kindly share this post
Continue Reading

Trending