The Central {Bank} of Nigeria (CBN) has issued a powerful reminder to banks, cost service banks, and fintech corporations on the necessity to reinforce their sanctions compliance frameworks or danger 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 {financial} establishments to make sure strict adherence to sanctions lists maintained at each worldwide and nationwide ranges.
These embody the United Nations Consolidated Sanctions Record, the Nigerian Sanctions Record in step with the Terrorism (Prevention and Prohibition) Act 2022, and tips on focused {financial} sanctions associated to terrorism and its financing.
In keeping with the apex {bank}, {financial} establishments are anticipated to frequently replace their techniques to establish designated individuals or entities and stop the misuse {of financial} platforms to facilitate unlawful transactions.
“{Financial} Establishments are required to keep up a strong and dynamic sanctions compliance framework that permits them to Determine and reply promptly to updates or adjustments throughout all relevant sanctions lists; Stop the usage of their techniques and platforms for transactions involving designated people or entities; Conduct real-time screening of consumers, transactions, and helpful homeowners; and File applicable stories with the Nigerian {Financial} Intelligence Unit (NFIU) and notify the CBN, the place needed,” the letter learn.
The CBN’s directive additionally covers real-time screening of consumers, transactions, and helpful homeowners. The place needed, establishments are to report suspicious actions to the Nigerian {Financial} 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 should be periodically reviewed and aligned with prevailing legal guidelines and regulatory expectations.
The reminder, which comes amid elevated international consideration to {financial} crime dangers, sends a transparent message that compliance is non-negotiable.
It additionally displays Nigeria’s efforts to enhance its standing with worldwide {financial} watchdogs such because the {Financial} Motion Activity Drive (FATF), particularly in areas like anti-money laundering (AML) and combating the financing of terrorism (CFT).
For fintech corporations and different rising gamers within the {financial} ecosystem, the CBN’s warning emphasises the necessity to combine compliance mechanisms into their know-how stacks and buyer onboarding processes.
In its concluding remarks, the CBN suggested all {financial} establishments to be aware of the steerage and act accordingly.
“This letter serves as a regulatory reminder and all {Financial} 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 {financial} establishments on excessive alert and reinforces the CBN’s dedication to strengthening the integrity of Nigeria’s {financial} system.
- With rising regulatory strain, banks and fintechs will now must prioritise the improve of their compliance techniques and make investments extra in instruments for sanctions screening, transaction monitoring, and reporting.
- It additionally indicators that the CBN is more likely 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 important as innovation in Nigeria’s {financial} providers panorama.
