The Central Bank of Nigeria (CBN) has issued a firm directive to banks, payment service banks, and fintech companies, reminding them to strengthen their sanctions compliance frameworks or face regulatory sanctions.
In a letter dated April 17, 2025, the CBN emphasised that all financial institutions must strictly adhere to international and national sanctions lists. These include the United Nations Consolidated Sanctions List and Nigeria’s own list in line with the Terrorism (Prevention and Prohibition) Act of 2022, as well as relevant guidelines on targeted financial sanctions related to terrorism and its financing.
The letter, signed by Amonia Opusunju for the Director of the Compliance Department, stated that financial institutions must regularly update their systems to detect and prevent transactions involving individuals or entities designated on these lists. The apex bank also mandated real-time screening of customers, transactions, and beneficial owners to detect any suspicious activities that must be reported to the Nigerian Financial Intelligence Unit (NFIU) and the CBN.
According to the directive, institutions must maintain a “robust and dynamic” compliance framework capable of adapting to changes in applicable sanctions lists, ensuring their platforms are not used to finance terrorism or other illegal activities. The CBN added that periodic reviews of these systems are required to meet regulatory standards.
Failure to comply, the CBN warned, will lead to enforcement actions and possible penalties.
This directive comes at a time of heightened global focus on financial crime, and underscores Nigeria’s commitment to aligning with international anti-money laundering and counter-terrorist financing standards, particularly those of the Financial Action Task Force (FATF).
For fintech firms and other emerging players in the financial sector, the CBN’s message is clear: compliance is as critical as innovation. Integrating effective compliance tools during customer onboarding and into core technologies is now mandatory.
The apex bank concluded by urging all financial institutions to treat the directive seriously and ensure full, continuous compliance with applicable laws and regulatory guidelines.
This latest directive signals a tightening of regulatory oversight in Nigeria’s financial sector. Financial institutions must now prioritise the upgrade of their compliance infrastructure, investing in advanced tools for sanctions screening, real-time monitoring, and detailed reporting. For smaller players, especially new fintech entrants, it is a warning that regulatory expectations are high and that failure to comply could carry serious consequences.
The CBN’s move reinforces its broader agenda to safeguard the integrity of Nigeria’s financial system, discourage financial crimes, and improve the country’s credibility with international watchdogs.
