CBN Mandates Staff to Disclose Ties with Politically Exposed Persons in Stringent Directive

In a recent directive from the Central Bank of Nigeria (CBN), staff members have been mandated to disclose their connections with ‘close relatives’ employed within the bank. The memo, signed by Christian Eze, the Deputy Director of the Human Resources Department, specifies the need for employees to declare any affiliations with Politically Exposed Persons (PEPs) in the country.

The definition of ‘close relative’ encompasses spouses, biological and adopted children, siblings, parents, and half-siblings. The directive requires the completion of a form by staffers whose close relatives, whether currently employed or retired from the bank, were engaged from 2014 onwards.

Moreover, staff members joining the bank’s services within the same period and possessing relationships with PEPs are also obligated to disclose these associations by completing the stipulated form. The CBN emphasizes the significance of identifying PEPs, categorizing them as individuals entrusted with significant public functions in Nigeria or foreign countries, along with their associations.

The submission deadline for these declarations was set for 12 noon on November 10, 2023, with a clear warning that failure to disclose or making false declarations will result in sanctions.

The CBN’s move aligns with an ongoing investigation into the institution, initiated by President Bola Tinubu’s appointment of a Special Investigator, Jim Obazee, to probe into the activities of the CBN and related entities. The appointment aims to strengthen transparency, combat corruption, and ensure the integrity of key Government Business Entities (GBEs) while blocking financial leakages.

This directive comes after an earlier circular released by the CBN on June 22, which introduced guidance on mitigating money laundering, terrorism financing, and proliferation risks related to high-risk customers, including Politically Exposed Persons (PEPs).

The unfolding developments at the CBN suggest a proactive approach in maintaining transparency, accountability, and integrity within the institution amidst heightened scrutiny and efforts towards combatting corruption.