The Association of Bureaux De Change Operators of Nigeria (ABCON) has called for increased vigilance in the operation and regulation of the Nigeria financial system to protect it against terrorism financing and illicit financial flows.
In a statement, ABCON condemned any form of terrorism financing in the country, and reiterated its support for all legitimate domestic and international efforts in tackling illicit financial flows and safeguarding the integrity of Nigeria’s financial system.
The group’s position followed recent actions by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) against certain individuals and entities allegedly involved in facilitating terrorist financing.
The ABCON said the new development underscores the need for enhanced vigilance across all financial sectors, including foreign exchange markets.
“It is important to emphasize that sanctions are directed at specific individuals or entities based on intelligence and investigations and should not be interpreted as an indictment of the entire BDC industry. The overwhelming majority of licensed BDC operators conduct their businesses in compliance with Nigerian laws and regulatory requirements,” ABCON statement said.
The group also listed strong measures being taken to curb terrorism financing in Nigeria, including its collaboration with the Central Bank of Nigeria (CBN), the Nigerian Financial Intelligence Unit (NFIU), law enforcement agencies, and other stakeholders, to implement Customer Due Diligence and strengthen Know-Your-Customer (KYC) procedures.
Others are verifying customer identities and beneficial ownership information, applying enhanced due diligence to high-risk transactions, sanctions screening among others.
“ABCON remains committed to preserving the integrity, transparency, and credibility of Nigeria’s foreign exchange market. We support all lawful efforts to identify, investigate, and sanction any individual or institution involved in terrorism financing. The association will continue to work closely with the CBN, NFIU, security agencies, and international partners to strengthen AML/CFT compliance and ensure that the Bureau De Change sector is not used as a channel for illicit financial activities.
“This position demonstrates support for enforcement actions while protecting the reputation of compliant BDC operators and highlighting the sector’s commitment to international AML/CFT standards,” it added.
