ABUJA—The Central Bank of Nigeria, CBN, has called for the abolition of shell banks in the country, saying they serve as institutions for money laundering.
Shell banks are institutions that carry out activities where they are not licensed.
Mr Godwin Emefiele, CBN governor, who was represented by Director, Legal Services Department, Mr Johnson Akinwunmi, made the request in Abuja, yesterday, at a public hearing organised by House Committee on Banking and Currency on a Bill to amend the Banking and Other Financial Institutions Act (BOFIA) and other bills.
He said the shell banks, apart from being used for money laundering, distort the banking system and might pose a problem to regulatory agencies.
Emefiele, represented by the Director, Legal Services Department, Mr Johnson Akinwunmi said “we wish to propose the introduction of new subsections 3(6) and (7) for the proscription of shell banks in response to the latest recommendations of the Financial Action Task Force (FATF) on money laundering.”