The Central Bank of Nigeria has reinforced its regulatory oversight to bolster the resilience and transparency of the country’s financial system, reaffirming its commitment to strict compliance and risk management across financial institutions.
According to a statement from the apex bank on Sunday, the CBN reaffirmed its commitment at a Mandatory Compliance and Anti-Money Laundering Training Workshop held in Lagos on February 28, 2025.
The event, organised in collaboration with Citi, brought together compliance officers, trade operations specialists, and correspondent banking teams from various financial institutions to discuss global regulatory trends, financial risks, and strategies for maintaining robust compliance frameworks.
The statement read in part, “The Central Bank of Nigeria has reaffirmed its commitment to maintaining a transparent and resilient financial system by reinforcing regulatory compliance and risk management across Nigerian financial institutions.”
Special Adviser to the CBN Governor on Compliance, Shola Phillips, stressed the need for Nigerian financial institutions to align with international banking standards to maintain confidence in the sector, the statement noted.
She said regulators expect financial institutions to operate dynamic, risk-based anti-money laundering and counter-financing of terrorism programmes that can adapt to an evolving financial environment.
She emphasised that proactive engagement with regulatory developments and the integration of innovative compliance solutions were necessary for institutions to meet global expectations.
Quoted in the statement, she said, “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.”
The Managing Director of Citi’s Correspondent Banking Group, Siobhan Ni Ealaithe, affirmed the importance of strong governance frameworks in mitigating financial risks.
She noted that measures such as Know Your Customer, Know Your Business, and Know Your Transaction protocols were critical in preventing illicit financial flows and ensuring transparency in cross-border transactions.
Head of EMEA AML Risk Management for Foreign Correspondent Banking, Stephanie Bailey, warned of the scale of financial crime globally, revealing that over $3tn in illicit funds move through the financial system every year.
She urged Nigerian banks to strengthen due diligence processes, adopt technology-driven risk assessment tools, and maintain transparency in all transactions.
The CBN’s intensified focus on compliance aligns with the vision of Governor Olayemi Cardoso, who has consistently pushed for the enforcement of global best practices in Nigeria’s financial sector, the statement noted.
According to the statement, Cardoso said a strong financial system was built on trust, which could only be sustained through integrity and compliance.