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The Central Bank of Nigeria (CBN) has reinforced its regulatory and compliance framework to bolster the resilience, transparency, and stability of the nation’s financial system. This renewed focus underscores the CBN’s commitment to risk management, regulatory compliance, and financial crime prevention across financial institutions.
Mandatory Compliance Training to Boost Regulatory Adherence
At the Mandatory Compliance and Anti-Money Laundering (AML) Training Workshop, held in Lagos on February 28, 2025, the CBN reiterated its dedication to strengthening financial institutions through enhanced compliance protocols and risk-based regulatory frameworks. The event, organized in collaboration with Citi, convened compliance officers, trade operations specialists, and correspondent banking teams to discuss emerging regulatory trends and best practices for financial risk management.
According to a CBN statement, the central bank remains focused on maintaining a transparent and resilient financial system by reinforcing compliance measures and risk mitigation strategies across Nigerian financial institutions.
Aligning with Global Banking Standards
Shola Phillips, Special Adviser to the CBN Governor on Compliance, emphasized the critical need for Nigerian financial institutions to align with international banking standards to maintain sector confidence. She highlighted that regulatory expectations now demand dynamic, risk-based AML and Counter-Financing of Terrorism (CFT) programs, which must adapt to the rapidly evolving financial landscape.
Phillips stated:
“Regulators expect financial institutions to maintain dynamic, risk-based AML/CFT programmes that are responsive to the evolving financial environment. Proactive engagement with regulatory developments and the integration of innovative compliance solutions are essential for institutions to meet these expectations effectively.”
Strengthening Governance and Financial Crime Prevention
The importance of strong governance frameworks was also stressed by Siobhan Ni Ealaithe, Managing Director of Citi’s Correspondent Banking Group. She underscored that Know Your Customer (KYC), Know Your Business (KYB), and Know Your Transaction (KYT) protocols are essential tools for preventing illicit financial flows and ensuring transaction transparency in cross-border payments.
Adding to this, Stephanie Bailey, Head of EMEA AML Risk Management for Foreign Correspondent Banking, warned of the growing scale of financial crime, revealing that over $3 trillion in illicit funds circulate through the global financial system annually. She urged Nigerian banks to strengthen due diligence processes, leverage technology-driven risk assessment tools, and ensure transparency in all transactions.
Governor Cardoso’s Vision for Financial Integrity
CBN Governor Olayemi Cardoso has consistently advocated for stronger regulatory enforcement and global best practices in Nigeria’s financial sector. He reaffirmed the CBN’s commitment to integrity and compliance, noting that financial stability is built on trust and adherence to high regulatory standards.
“A strong financial system is built on trust, which can only be sustained through integrity and compliance,” Cardoso stated.
The CBN is also enhancing its regulatory frameworks by adopting digital compliance solutions, strengthening monitoring mechanisms, and intensifying efforts to combat money laundering and financial crimes. This approach aligns with global financial regulations and aims to reinforce Nigeria’s position as a transparent and secure financial hub.
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