The Central Bank of Nigeria has directed banks and fintech firms to enhance their sanctions compliance systems, citing obligations under domestic and global anti-terrorism laws. Institutions must conduct real-time screening, update systems with global sanctions lists, and report suspicious activity or face enforcement actions from regulators.
The Central Bank of Nigeria has ordered all financial institutions, including fintechs, to strengthen their sanctions compliance frameworks or face penalties. The directive mandates real-time transaction screening and adherence to both international and domestic sanctions lists, amid growing pressure to meet global anti-money laundering and counter-terrorism financing standards.
The Central Bank of Nigeria (CBN) has issued a sharp warning to financial institutions across the country, directing them to overhaul their sanctions compliance protocols or risk facing regulatory action.
In a new directive sent to banks, fintech companies, and payment service providers, the apex bank stressed that compliance with national and international sanctions lists must be prioritized. Signed by Amonia Opusunju on behalf of the Director of the Compliance Department, the circular outlines critical steps institutions must take to prevent being used as channels for terrorism financing and illicit activities.
These steps include implementing real-time screening systems for customers and transactions, immediate updates to reflect new sanctions listings, and robust internal frameworks for monitoring and reporting suspicious activity. Institutions were also reminded of their duty to report to the Nigerian Financial Intelligence Unit and notify the CBN where necessary.
The directive reflects Nigeria’s ongoing effort to improve its global anti-money laundering reputation and comply with watchdogs like the Financial Action Task Force (FATF). The CBN emphasized that failure to act swiftly and adequately could lead to enforcement measures, including penalties or operational restrictions.
The move also puts pressure on rapidly growing fintech startups to adopt the same level of compliance expected of traditional banks. As financial technology continues to evolve, regulators appear determined to ensure innovation does not outpace oversight.
