1. IMPLEMENTATION STRUCTURE & EXPECTED OUTCOMES FOR RECOMMENDATION 16, 17, 18, 19 & 20
Oladele Adeoye

2. OUTLINE Introduction Recommendation 16 Recommendation 17
Conclusion

3. INTRODUCTION Structure Reporting Suspicious Transactions 16 17,18&19
Additional Measure for specific customers activities
Reliance, controls and financial groups
Reporting Suspicious Transactions 16
17,18&19 20

4. Wire Transfer (Regulation 23)
RECOMMENDATION 16
Wire Transfer
(Regulation 23)

5. RECOMMENDATION OBJECTIVES
Prevent Terrorist & Criminals from moving funds
Detecting movement of illicit funds
Ensuring that basic information about originators & beneficiaries of funds are immediately available to LEAs, FIU
Complying with freezing action and prohibition of dealings with designated persons and entities.

6. RESPONSIBILITIES OF PARTIES TO WIRE TRANSFER
The Parties
Ordering financial institution
Intermediary Financial Institution
Beneficiary Financial Institution
Capture both originator & beneficiary information
Keep records of parties to wire transfer
Put in place enhanced real time or post event monitory in place on transaction lacking details
Transaction below reputable threshold should be captured
The records of all transfer should be kept for 5yrs
Identify and verify beneficiaries
Keep records
Have a RB mechanism for execute, reject or suspend deal without proper information
Have a RB mechanism for execute, reject or suspend deal without proper information
Do not deal without information

7. RECOMMENDATION SCOPE SCOPE Qualifying cross border wire transfer
Domestic wire transfer
Qualifying cross border wire transfer

8. DOMESTIC WIRE TRANSFER
Capture originator information
Account number
Transaction reference number
Information should be made available on request or within a maximum period of (3) working days to:
Beneficiary financial institutions
Statutory bodies
LEAs

9. QUALIFYING CROSS BORDER WIRE TRANSFER
Capture name of the originator
Capture account number if used to process transaction
Capture identification details
Capture name of beneficiary
Capture account number of beneficiary if used

10. LIMITATION TO WIRE TRANSFER
Purchases transaction involving debit/credit/prepaid card accompanied by card numbers
Financial institution to financial institutions

11. REGULATORY FRAMEWORK (REG. 23)
Get originator info
File STR to NFIU where info is not available
Restrict/terminate relationship with originator financial institution that fail to meet standard

12. Reliance on third party Regulation 28
RECOMMENDATION 17
Reliance on third party
Regulation 28

13. RELIANCE BASIS
Identification & verification of customer using reliable, independent source document
Identification and verification of beneficial owners.
Understanding purpose and intending nature of business relationship

14. RELIANCE CRITERIA
Obtain information relating to customer immediately from the third party
Take steps to be satisfied that copies of identification data and other relevant documentation relating to CDD are readily available
Be satisfied that the third party is regulated, supervised or monitored for CDD and record keeping
Be satisfied that the third party has measures for CDD and record keeping
Give consideration to the risk level of the country of operation of the third party

15. LIMITATION
Responsibility for CDD measures remain ultimately with the financial institution relying on the third party
Third party means financial institution and designated non-financial institutions that have prior business relationship with customer
It does not include outsourcing or agency relationships

16. Internal Controls and Foreign Branches and Subsidiaries
RECOMMENDATION 18
Internal Controls and Foreign Branches and Subsidiaries

17. GROUP AML/CFT PROGRAM Group financial AML/CFT program include:
Internal policies, procedures and controls
Appropriate compliance management arrangement
Adequate screening procedure for employment of staff (KYE)
On-going employee training
Independent audit function to test the system

18. APPLICABILITY Group Financial Institution Branches
Majority Owned subsidiaries
Foreign Operations

19. BRANCHES & MAJORITY-OWNED SUBSIDIARIES
AML/CFT programs should be made applicable to all branches and subsidiaries
Implementation of the AML/CFT programs should be effective
The program should include policies & procedure for sharing CDD and risk management information.
Safeguards on the confidentiality of information should be put in place

20. FOREIGN OPERATIONS
Home country FIs should export their AML/CFT to Host country FIs where host country is less strict.
Implementation should be subject to host country’s extent of permission
Where proper implementation is not possible in host countries, additional measures should be taken and home supervisors should be informed of ML/TF risks

21. RECOMMENDATION 19
Higher Risk Countries

22. FRAMEWORK
FIs to apply EDD to business relationships in higher risk countries. This is applicable to relationship involving:
Natural person
Legal persons
Financial institutions.
Countries to also apply countermeasures to Higher risk countries
The application of the measures will be at the instance of FATF

23. HIGHER RISK COUNTRIES
Identified by credible sources (i.e. mutual evaluation reports) as having inadequate AML/CFT systems
Countries subject to sanctions, embargoes or similar measures issued by, for example, United Nations
Countries identified by credible sources having significant levels of corruptions or other criminal activity.
Countries identified by credible sources as supporting or have designated terrorist organisation operating within its territories

24. EDD MEASURES
Obtain additional information on the customer using public database and internet
Update customer and beneficial owner identification regularly
Obtain additional information on intended nature of business relationship
Obtain information on the source of funds and source of wealth of the customer
Obtain information on the reason for intended or performed transaction
Obtain Senior Management Approval to commence or continue relationship
Conduct enhanced monitoring of the business relationship by increasing timing of controls and setting of patterns of transaction requiring further examination
Requesting first payment to be made through an account in customers name with a bank subject to similar CDD measures

25. COUNTERMEASURES BY COUNTRIES
Financial institutions to apply specific EDD measures
Introducing specific reporting mechanisms
Refusing to have branch/subsidiaries in such jurisdiction and taking cognisance of ML/TF risk level in dealing with FIs in such jurisdiction
Linking business relationship with the identified country/persons
Not relying on third party for CDD procedures
Review, amend or terminate correspondence relationship
Increased monitoring of activities on branches and subsidiaries
Increased external audit of branches/subsidiaries operating in identified country.

26. RECOMMENDATION 20 Reporting of Suspicious Transactions
(Section 15 MLPA 2011, (As Amended)
Regulation 31 of CBN, AML/CFT Regulation 2013

27. FRAMEWORK
Suspicious transactions relate to all predicate offense for money laundering: section 15 of MLPA 2011 (As Amended)
Terrorist Financing relate to
Financing of terrorist Act
Terrorist organisations
Individual terrorist (whether or not linked to terrorist act(s)
Activities are to be reported regardless of the amount involved
It must be a direct mandatory reporting

28. GROUND FOR SUSPICIOUS Unjustifiable or unreasonable frequency
Unusual or unjustified complexity
No economic justification or lawful objectives
Involves terrorist financing/inconsistency with known patterns

29. Be ready to demonstrate Compliance!
CONCLUSION
Be ready to demonstrate Compliance!
Compliance Model
Documentary
Statistic
Information on risk, context and activities case studies (to analyse statistics)
Relevant
Accurate
Comparable
Case study (i.e. success story)
Timely
Coherent
Internal Document (AML/CFT policies & procedure)
Clear
Accessible

31. THANK YOU