The Central {Bank} of Nigeria (CBN) has issued a robust 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 {financial} establishments to make sure strict adherence to sanctions lists maintained at each worldwide and nationwide ranges.
These embody the United Nations Consolidated Sanctions Listing, the Nigerian Sanctions Listing according to the Terrorism (Prevention and Prohibition) Act 2022, and pointers on focused {financial} sanctions associated to terrorism and its financing.
In response to the apex {bank}, {financial} establishments are anticipated to repeatedly replace their programs 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 sturdy and dynamic sanctions compliance framework that allows them to Determine and reply promptly to updates or modifications throughout all relevant sanctions lists; Stop using their programs and platforms for transactions involving designated people or entities; Conduct real-time screening of shoppers, transactions, and useful homeowners; and File applicable experiences with the Nigerian {Financial} Intelligence Unit (NFIU) and notify the CBN, the place essential,” the letter learn.
The CBN’s directive additionally covers real-time screening of shoppers, transactions, and useful homeowners. The place essential, establishments are to report suspicious actions to the Nigerian {Financial} Intelligence Unit (NFIU) and notify the apex {bank}.
Non-compliance may set off sanctions, says CBN
The regulator burdened that failure to satisfy these obligations may 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 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 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 {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 pay attention to the steering 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 growing regulatory stress, banks and fintechs will now have to prioritise the improve of their compliance programs 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 spanking 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} companies panorama.
