Nigeria’s apex bank has issued a fresh warning to financial institutions, urging banks and fintechs to tighten their compliance systems or face consequences. In a letter dated 17 April 2025, the Central Bank of Nigeria (CBN) reminded all operators to step up their sanctions screening or risk regulatory penalties.
The directive, signed by Amonia Opusunju on behalf of the Director of Compliance, emphasised that institutions must rigorously monitor both local and international watchlists. These include the United Nations Consolidated Sanctions List and the Nigerian Sanctions List, maintained under the Terrorism (Prevention and Prohibition) Act 2022.
The CBN stated that financial operators must update their systems continuously to identify individuals and entities under sanctions. This includes integrating real-time screening into customer and transaction monitoring processes, as well as ensuring that beneficial owners are not linked to illegal activity.
Fintechs Under Fresh Regulatory Spotlight
While traditional banks are no strangers to regulatory oversight, this move puts more pressure on Nigeria’s growing fintech industry. Players in this space are being asked to build compliance mechanisms directly into their technology and onboarding flows.
“This letter serves as a regulatory reminder and all Financial Institutions are expected to ensure continued compliance with applicable laws and CBN directives,” the apex bank warned in its memo.
The letter also instructs institutions to report suspicious transactions promptly to the Nigerian Financial Intelligence Unit (NFIU) and notify the CBN where necessary.
This renewed focus aligns with broader international standards led by the Financial Action Task Force (FATF). Nigeria is currently working to boost its anti-money laundering (AML) and counter-terrorist financing (CFT) efforts, and stronger local compliance is a step in that direction.
Failure to act, the bank warned, will result in enforcement actions. The CBN also expects regular reviews of compliance systems to meet evolving regulatory demands.
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