The CBN warns that new bank promoters must disclose their funding sources.

Financial institution promoters, shareholders, and owners must now reveal their sources of income when applying for a license from the Central Bank of Nigeria.

This is being done to stop the creation of financial institutions in the country using laundered money or contributions from terrorist groups.

Terrorism, banditry, abduction for ransom, and an increase in state-level insecurity are among the problems the country is now facing.

The guidelines for “Licensing Banks and Other Financial Institutions in Nigeria on Anti Money Laundering, Combating Financing Terrorism, and Countering Proliferation Financing of Weapons of Mass Destruction” include the additional requirement.

CBN, in a circular issued by the director, Financial Policy and Regulation Department, Chibuzo Efobi, said the recommendations was part of efforts at encouraging compliance with AML/CFT/CPF rules and regulations. The recommendation serves as the bare minimal standards for approving 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.