The Central Bank of Nigeria (CBN) has called on financial institutions to enhance their compliance frameworks and align with global banking standards to curb illicit financial flows and maintain the integrity of the financial system.
The apex bank made this call at the Mandatory Compliance and Anti-Money Laundering (AML) Training Workshop held in Lagos on February 28, 2025, in partnership with Citi. The event gathered compliance officers, trade operations specialists, and correspondent banking teams to discuss global regulatory trends, financial risks, and best practices for ensuring compliance.
In a statement issued on Sunday, the CBN reaffirmed its commitment to strengthening regulatory oversight and ensuring that Nigerian banks adopt risk-based AML and Counter-Financing of Terrorism (CFT) programmes that align with evolving global standards.
Speaking at the event, Shola Phillips, Special Adviser to the CBN Governor on Compliance, stressed that financial institutions must implement compliance frameworks that reflect international best practices. She noted that correspondent banking relationships increasingly depend on stringent compliance measures, making it crucial for Nigerian banks to enhance their risk management structures.
“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,” Phillips stated.
She warned that failure to align with global compliance standards could subject Nigerian banks to heightened scrutiny from international financial institutions, potentially affecting their access to global banking networks.
At the workshop, Siobhan Ni Ealaithe, Managing Director of Citi’s Correspondent Banking Group, emphasized the importance of strong governance frameworks in managing financial risks. She pointed out that compliance measures such as Know Your Customer (KYC), Know Your Business (KYB), and Know Your Transaction (KYT) are critical in preventing illicit financial flows and ensuring transparency in transactions.
Similarly, Stephanie Bailey, Head of EMEA AML Risk Management for Foreign Correspondent Banking, highlighted the increasing risks posed by financial crime, noting that an estimated $3 trillion in illicit funds flows through the global financial system annually. She urged Nigerian banks to strengthen due diligence processes, embrace technology-driven risk assessments, and maintain transparency to meet global regulatory expectations.
The CBN’s renewed focus on compliance aligns with Governor Olayemi Cardoso’s commitment to enforcing global best practices in Nigeria’s financial sector. The statement quoted him as saying that maintaining a strong financial system requires strict adherence to regulatory standards to sustain trust and stability.
As part of its efforts to enhance regulatory oversight, the CBN is implementing stricter compliance frameworks, adopting digital monitoring tools, and intensifying supervision of financial institutions to curb money laundering and other illicit financial activities.
With increasing global emphasis on transparency and risk mitigation, Nigerian banks are expected to implement more rigorous compliance measures to maintain access to international financial markets and avoid potential regulatory sanctions.
