CBN Governor Urges Regional Action Against Money Laundering and Fintech Risks
Written by Jerry Alomatu on July 2, 2024
ABUJA – Mr. Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has called for concerted efforts among monetary authorities in the West African Sub-region to combat money laundering. Speaking at the 10th meeting of the College of Supervisors for Non-Bank Financial Institutions (CSNBFI) in the West African Monetary Zone (WAMZ) held in Abuja, Cardoso highlighted the escalating risks posed by fintech innovations to global financial stability.
Represented by Mr. Abayomi Arogundade, Acting Director of the Other Financial Institutions Department, Cardoso emphasized the need to enhance anti-money laundering practices, bolster cybersecurity supervision, and implement a risk-based supervisory approach. He underscored the critical role of monitoring trends and innovations in Non-Bank Financial Institutions (NBFIs) and Other Financial Institutions (OFIs), noting their growing transaction volumes and the resultant risks to financial system stability.
Addressing the prevalence of fintech loans, Cardoso pointed out their increasing volume globally, facilitated through electronic platforms acting as financial auxiliaries or new intermediaries. He highlighted the dual role of fintech firms providing applications and technologies for digital banking, and cautioned about innovations involving crypto or Stablecoin assets reported in some jurisdictions.
The CBN Governor urged greater collaboration among regulatory bodies within the sub-region to counter potential abuses of financial innovations, safeguarding both the public and financial institutions from exploitation.
The meeting concluded with a commitment to strengthen regulatory frameworks and enhance cooperation to mitigate emerging risks in the financial technology sector across West Africa.
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Author: Jerry Alomatu
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