CBN Tackles Money Laundering in Nigeria, Issues New Rules for Banks, Fintechs
- The CBN has directed banks and financial institutions to deploy automated anti-money laundering systems
- Deposit money banks have 18 months to fully comply with the new directive
- Other financial institutions including fintech firms have 24 months to implement the changes
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, the stock market, and broader market trends.
The Central Bank of Nigeria (CBN) has introduced new technology-driven regulations requiring banks and other financial institutions to deploy automated anti-money laundering (AML) systems to strengthen the detection of suspicious financial transactions.
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In a circular issued on March 10, 2026 titled “Baseline Standards for Automated Anti Money Laundering (AML) Solutions for Financial Institutions in Nigeria” the apex bank, said the new policy is aimed at improving the monitoring and reporting of financial crimes in Nigeria’s increasingly digitised financial system.
The instruction as sent to banks, mobile money operators, international money transfer operators, payment service providers, and other financial institutions.
CBN cracks down on money laundering
BusinessDay reports that the CBN said the move is designed to strengthen compliance with existing financial crime regulations and encourage financial institutions to adopt modern technology to combat money laundering, terrorism financing, and proliferation financing.
The apex bank noted that the standards provide a framework for deploying automated solutions capable of detecting suspicious financial activities in real time.
Part of the circular reads:
“The baseline standards provide a framework for implementing automated solutions that strengthen the detection and reporting of suspicious transactions in real time and enhance compliance with applicable AML/CFT/CPF laws and regulations.”
The regulator added that the framework aligns with global best practices, including recommendations by the Financial Action Task Force (FATF), the international body responsible for combating money laundering and terrorist financing.
Banks get timeline to implement AML technology
Under the new framework, financial institutions are required to deploy automated AML systems that integrate customer identification, transaction monitoring, sanctions screening, and risk assessment tools.
The apex bank gave deposit money banks 18 months to achieve full compliance, while other financial institutions have up to 24 months to implement the required systems.
The apex bank also directed all affected institutions to submit implementation roadmaps to its Compliance Department within three months of the circular.
According to the CBN:
“The implementation of these guidelines shall start from the date of issuance, while full compliance shall be 18 months for Deposit Money Banks and 24 months for Other Financial Institutions.”
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AI and real-time monitoring to drive financial crime detection
The framework emphasises the use of advanced technologies such as artificial intelligence, machine learning, predictive analytics, and behavioural monitoring to improve the detection of suspicious financial activity.
Under the guidelines:
- Financial institutions must deploy systems capable of conducting risk-based customer due diligence and monitoring transactions across multiple channels.
- Automated platforms must screen customers against sanctions lists and politically exposed persons databases.
- Systems must integrate with core banking platforms and identity databases to enable real-time analysis of transaction patterns.
The CBN explained that traditional manual monitoring systems are no longer sufficient to manage financial crime risks in Nigeria’s increasingly digital financial sector.
Automated systems are also expected to support the timely generation and submission of Suspicious Transaction Reports to regulatory authorities, including the Nigeria Financial Intelligence Unit (NFIU).
The central bank warned that financial institutions that fail to comply with the new standards or operate ineffective AML systems could face regulatory sanctions.
Compliance will be monitored through off-site surveillance, on-site examinations, and thematic regulatory reviews conducted by the regulator.
Cash withdrawal, deposit rules
Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) updated its rules on cash withdrawals and deposits, with the new policy taking effect from January 1, 2026.
Under the revised framework, banks and other financial institutions must comply with the updated cash management guidelines, which modify several existing regulations.
A key change in the policy is the removal of cumulative deposit limits, allowing customers to deposit any amount of cash without being charged excess deposit fees.
Source: Legit.ng
