CBN Announces Stricter Oversight of Financial Institutions Over Terrorism Financing
- The Central Bank of Nigeria named terrorism financing risk a current supervisory priority, signalling stricter oversight of the country's financial institutions
- The CBN said its focus will cover transaction monitoring, targeted financial sanctions, and reporting of suspicious terrorism-linked transactions
- Acting director Hakama Sidi-Ali signed the statement, which outlined both on-site and off-site supervisory engagements across the financial sector
PAY ATTENTION: Mark Legit.ng as a preferred source, and our content will appear higher in your Google feed!
The Central Bank of Nigeria (CBN) has placed terrorism financing risk at the top of its supervisory agenda, marking a significant shift in how the apex bank plans to monitor and regulate financial institutions across the country.
In a statement signed by Hakama Sidi-Ali, acting director of the Corporate Communications and Investor Relations Department, on Tuesday, the CBN said enhanced scrutiny would be applied to terrorism financing risk management, transaction monitoring, the implementation of targeted financial sanctions, and the reporting of suspicious transactions connected to terrorism financing.
Source: Getty Images
The bank said it would continue to use a risk-based approach to check that financial institutions are complying with anti-money laundering and counter-terrorism financing rules.
This will involve both on-site visits and off-site assessments to measure how effective controls are across the sector, in line with existing legal obligations.
The CBN said in the statement:
"The Central Bank of Nigeria has elevated terrorism financing supervision to a current supervisory priority, as part of its ongoing commitment to protecting the Nigerian financial system from abuse by illicit actors.
“The Bank will continue to apply a risk-based supervisory approach, including on-site and off-site engagement, to support effective AML/CFT/CPF controls across the financial sector in line with existing legal and regulatory obligations."
The CBN added that the supervisory focus also supports Nigeria's cooperation with domestic and international partners on counter-terrorism financing, counter-proliferation financing, and broader financial integrity goals.
Where necessary, the bank said further supervisory engagements would follow as it works to strengthen protections around the financial system.
Source: UGC
Pressure on Nigerian Financial Institutions
The announcement comes as Nigerian financial regulators and institutions face growing pressure to ensure the country's banking system cannot be used to move or conceal funds tied to terrorism or other criminal activities, BusinessDay reports.
The CBN framed the decision as part of a broader effort to build the resilience of Nigeria's financial system against money laundering, terrorism financing, and proliferation financing risks.
The bank said:
"This supervisory focus also supports Nigeria's ongoing domestic and international cooperation on counter-terrorism financing, counter-proliferation financing, financial integrity, and the protection of the financial system."
CBN approves as another bank begins operation
Earlier, Legit.ng reported that Bank78 MFB officially commenced operations as a private digital lender in Nigeria.
The bank said that while its model is inspired by private banking culture and principles, it is deliberately designed to serve mass-affluent Nigerians seeking a secure and premium digital banking experience.
In a statement announcing the commencement of operations, Bank78 MFB said it aims to bridge the gap between fast-growing fintech companies and traditional legacy banks.
Source: Legit.ng
