De-risking reduces in Africa as correspondent banks open relationship
Even as banks around the world are reducing their correspondent banking relationships, focusing in particular on high-risk jurisdictions, de-risking in Africa is said to have significantly reduced as correspondent banks have begun to open relationships. The Guardian learnt that as the level of de-risking has reduced, statistics shows that four out of five banks are de-risked in Africa. Indeed, de-risking is not necessarily just about minimising risk, the cost of maintaining relationships is a significant consideration.
The phenomenon, has seen many large international banks responding to concerns about money laundering and terrorist financing, as well as cost and regulatory pressures, by withdrawing from certain relationships, products or even jurisdictions.President/Chairman of Board, Compliance Institute of Nigeria (CIN), Pattison Boleigha, who disclosed this recently, said international partnerships to tackle money laundering and terrorist financing, as well as better equipped compliance officers are paying off. He said the institute is poised to contribute significantly to ensure Nigeria complies on regulatory compliance.
In the last three years, Boleigha said that the institute has made giant strides in instilling more knowledge on its members on how to manage money laundering and terrorist financing. Speaking at the institute’s third induction ceremony, Boleigha said CIN has impacted private sector compliance officers on how to control money laundering and terrorist financing and has well helped the government to curb illegal financial inflows.
While Congratulating the inductees, he said: “We are hopeful that these new select crop of professionals will help reshape the corporate compliance culture in Nigeria, Africa and indeed the world.“The skills, knowledge and expertise that they have gained will enhance their professional competencies and enable them secure good compliance jobs and professional dignity that will help provide value added services to their employers, thus furthering the standards and developments of the compliance profession.”
Noting that the political and economic environment in Nigeria and globally has recently gone through tremendous changes with a fast pace in changes in regulation in all sectors, the need for compliance culture to be driven by compliance professionals becomes very expedient.
The need to continually improve the syllabus and curriculum of the institute has also become critical. He challenged them to stand tall in integrity, impeccable character, professional in service, alert to global trends and uphold high ethical and professional standards.He noted that the institute has achieved significantly in its objectives, especially, with a continuous review of its corporate governance structure.
To widen career opportunities outside the financial services, Chairman, Programme Education and Examination Committee of CIN, Isioma Gogo-Anazodo, said the institute have started discussions with other sectors of the economy, especially the telecommunications, manufacturing, oil and gas, and the mining sector. Similarly, she added that arrangements have also been concluded to provide scholarships for indigent student members to encourage them get compliance certifications.
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