Bank recapitalisation: CBN moves to check illicit financing, partners security agencies

The Central Bank of Nigeria plans to closely monitor the recapitalisation of the Nigerian banking sector, alongside law enforcement agencies.

The move is intended to prevent illicit financing in the sector.

The Director of the CBN’s Financial Policy and Regulation Department, Haruna Mustafa, disclosed this in a circular on Friday.

The circular addressed commercial, merchant and non-interest banks, including promoters of proposed banks, regarding the new minimum capital requirements for banks.

The banker’s bank said it will conduct the enforcement with the collaboration of relevant law enforcement agencies.

According to the circular, the CBN wants to ensure that the capital raised during the recapitalization process is free from illegality.

Recall that the CBN has raised the minimum capital requirements for all banks in Nigeria.