The Central Bank of Nigeria (CBN) has called on financial institutions to uphold international banking standards by enhancing their compliance procedures to combat illegal money flows and protect the country’s financial system.
The apex bank made this appeal during the Mandatory Compliance and Anti-Money Laundering (AML) Training Workshop organized by Citi in Lagos on February 28, 2025.
The workshop brought together regulatory officials, trade operations professionals, banking teams, and compliance experts to discuss emerging global regulatory developments, financial risks, and best practices for ensuring compliance.
CBN Urges Risk-Based Compliance Frameworks
Speaking at the event, Shola Phillips, Special Adviser to the CBN Governor on Compliance, emphasized that Nigerian banks must adopt risk-based Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) frameworks aligned with global best practices.
Phillips highlighted the need for Nigerian banks to strengthen their risk management systems to address the increasing transparency requirements in the global banking sector.
“Regulators expect financial institutions to maintain dynamic, risk-based AML/CFT programs that are responsive to the evolving financial environment. Proactive engagement with regulatory developments and the integration of innovative compliance solutions is essential for institutions to meet these expectations effectively,” she said.
In a statement made available to 9am News Nigeria, the CBN reiterated its commitment to enhancing regulatory supervision and ensuring that Nigerian banks adopt comprehensive compliance measures.
The apex bank disclosed plans to strengthen its monitoring of financial institutions using digital monitoring technologies to track suspicious transactions and enforce regulatory standards.
“The CBN will continue to enforce strict regulations to safeguard Nigeria’s financial system and ensure that financial institutions comply with international best practices. Improving compliance frameworks will prevent money laundering, preserve access to global financial markets, and avoid potential regulatory sanctions,” the statement added.
Nigeria’s financial system faces significant risks from money laundering and terrorism financing, especially with the increasing use of digital payment platforms. The implementation of risk-based compliance programs will help financial institutions identify, assess, and mitigate potential risks while enhancing transparency.
The CBN’s push for improved compliance frameworks signals its commitment to strengthening Nigeria’s financial system and aligning it with global standards. As financial crimes continue to evolve, Nigerian banks must adopt dynamic, risk-based AML/CFT strategies to maintain trust, avoid regulatory penalties, and secure access to the international financial system.
Stay tuned to 9am News Nigeria for more Breaking News, Business News, Sports updates And Entertainment Gists.
