ABUJA, Nigeria (VOICE OF NAIJA)-The Central Bank of Nigeria (CBN) has issued a new regulatory directive to banks, payment service banks, and fintech firms, urging them to strengthen their sanctions compliance systems or risk facing regulatory sanctions.
The directive, contained in a circular dated April 17, 2025, and signed by Amonia Opusunju on behalf of the Director of the Compliance Department, reiterates the obligation of all financial institutions to align with both local and international sanctions requirements.
These include adherence to the United Nations Consolidated Sanctions List, the Nigerian Sanctions List in accordance with the Terrorism (Prevention and Prohibition) Act 2022, and the CBN’s internal guidelines on targeted financial sanctions relating to terrorism and its financing.
The apex bank emphasized that institutions must put in place a “robust and dynamic sanctions compliance framework” capable of adapting swiftly to changes.
This framework, the CBN said, must allow institutions to “Identify and respond promptly to updates or changes across all applicable sanctions lists; Prevent the use of their systems and platforms for transactions involving designated individuals or entities; Conduct real-time screening of customers, transactions, and beneficial owners; and File appropriate reports with the Nigerian Financial Intelligence Unit and notify the CBN, where necessary.”
The Central Bank of Nigeria (CBN) has further instructed financial institutions to submit reports to the Nigerian Financial Intelligence Unit and to inform the apex bank when necessary.
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It cautioned that non-compliance could lead to regulatory sanctions or enforcement measures.
“The effectiveness of sanctions compliance programmes must be regularly reviewed and aligned with legal and regulatory requirements and expectations,” the circular stated.
This directive arrives amid growing international attention on financial crimes, especially those related to anti-money laundering and counter-terrorism financing.
As Nigeria works to strengthen its position with global oversight bodies like the Financial Action Task Force, regulatory scrutiny across the financial industry has been increasing.
The CBN’s advisory also underscores the importance for fintech companies and other emerging financial service providers to incorporate robust compliance structures into their operations, especially as the sector continues to evolve.
The regulator emphasized that the directive must be treated with urgency by all institutions under its supervision, stressing that compliance is not optional.
It called on financial operators to ensure alignment with all relevant legislation and CBN regulations to avoid punitive consequences.
This development marks a broader regulatory push, with banks and fintechs expected to enhance their compliance infrastructure ranging from sanctions screening to transaction monitoring and reporting tools.