CBN Unveils New Unit for Compliance and Risk

The Central Bank of Nigeria (CBN) has taken another step to tighten financial oversight with the creation of a new Compliance Department. The unit, established in early 2025 and fully operational by the second quarter, is expected to tackle rising risks in the country’s financial system.

The announcement came through a circular signed by Olubunmi Ayodele-Oni, which described the move as a structural reform aimed at consolidating supervision and clarifying roles across the banking industry.

Expanding oversight beyond traditional banking risks

The new department will now oversee four critical areas: financial crime, market conduct, enterprise security, and corporate governance. Its focus spans issues such as anti-money laundering (AML), counter-terrorism financing (CFT), data protection, and environmental, social and governance (ESG) oversight.

In the circular, the apex bank noted: “The establishment of the Compliance Department is a strategic move to embed regulatory discipline and ensure robust oversight of non-prudential risks.”

Banks and other regulated institutions have been directed to forward all compliance-related reports and inquiries to the new unit. The CBN added that further instructions on points of contact will follow in due course.

Rising fraud prompts stronger action

The launch comes just months after the CBN raised alarms about a sharp rise in fraud across the financial sector. According to Governor Olayemi Cardoso, fraud cases surged by 45% within one year, with over 70% of losses traced to digital channels, particularly unregulated virtual asset platforms.

Delivering the findings at an EFCC lecture in Abuja, Cardoso, represented by Deputy Governor Muhammad Sani Abdullahi, warned that digital growth, while advancing financial inclusion, has also opened doors to new risks. “Digital innovation has enabled broader inclusion but introduced complex regulatory and security challenges,” he said.