The Central Bank of Nigeria (CBN) has issued a powerful reminder to banks, cost service banks, and fintech firms on the necessity to reinforce their sanctions compliance frameworks or threat regulatory sanctions.
In a letter dated April 17, 2025, and signed by Amonia Opusunju for the Director of the Compliance Division, the CBN directed all monetary establishments to make sure strict adherence to sanctions lists maintained at each worldwide and nationwide ranges.
These embrace the United Nations Consolidated Sanctions Checklist, the Nigerian Sanctions Checklist according to the Terrorism (Prevention and Prohibition) Act 2022, and tips on focused monetary sanctions associated to terrorism and its financing.
In accordance with the apex bank, monetary establishments are anticipated to commonly replace their methods to establish designated individuals or entities and forestall the misuse of economic platforms to facilitate unlawful transactions.
“Monetary Establishments are required to take care of a strong and dynamic sanctions compliance framework that permits them to Establish and reply promptly to updates or modifications throughout all relevant sanctions lists; Forestall using their methods and platforms for transactions involving designated people or entities; Conduct real-time screening of shoppers, transactions, and useful house owners; and File acceptable reviews with the Nigerian Monetary Intelligence Unit (NFIU) and notify the CBN, the place vital,” the letter learn.
The CBN’s directive additionally covers real-time screening of shoppers, transactions, and useful house owners. The place vital, establishments are to report suspicious actions to the Nigerian Monetary Intelligence Unit (NFIU) and notify the apex bank.
Non-compliance might set off sanctions, says CBN
The regulator burdened that failure to satisfy these obligations might result in enforcement actions or regulatory penalties. It added that sanctions compliance frameworks have to be periodically reviewed and aligned with prevailing legal guidelines and regulatory expectations.
The reminder, which comes amid elevated world consideration to monetary crime dangers, sends a transparent message that compliance is non-negotiable.
It additionally displays Nigeria’s efforts to enhance its standing with worldwide monetary watchdogs such because the Monetary Motion Process Pressure (FATF), particularly in areas like anti-money laundering (AML) and combating the financing of terrorism (CFT).
For fintech firms and different rising gamers within the monetary ecosystem, the CBN’s warning emphasises the necessity to combine compliance mechanisms into their know-how stacks and customer onboarding processes.
In its concluding remarks, the CBN suggested all monetary establishments to pay attention to the steerage and act accordingly.
“This letter serves as a regulatory reminder and all Monetary Establishments are anticipated to make sure continued compliance with relevant legal guidelines and CBN directives,” the apex bank acknowledged.
What this implies
This reminder places monetary establishments on excessive alert and reinforces the CBN’s dedication to strengthening the integrity of Nigeria’s monetary system.
- With rising regulatory strain, banks and fintechs will now have to prioritise the improve of their compliance methods and make investments extra in instruments for sanctions screening, transaction monitoring, and reporting.
- It additionally indicators that the CBN is prone to intensify supervision on this space, with attainable audits or sanctions for establishments discovered wanting.
- For brand new entrants and smaller fintech gamers, the directive serves as a warning that regulatory compliance is simply as essential as innovation in Nigeria’s monetary companies panorama.
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