The Central Bank of Nigeria (CBN) has issued a draft framework aimed at overhauling anti-money laundering (AML) practices across the country’s financial sector.
In its circular titled BSD/DIR/CON/AML/018/033, the apex bank stated that the initiative is a response to the increasing digitalisation of Nigeria’s financial system and the growing complexity of financial transactions.
Dated May 20, 2025, and sent to all regulated institutions, the circular outlines new baseline standards for automated AML solutions, leveraging artificial intelligence (AI) and machine learning (ML) to detect and prevent financial crimes.
Banks and other financial institutions have been given 12 months from the final issuance of the standards to comply fully.
The new standards are intended to promote efficiency, enhance detection accuracy, and ensure full regulatory compliance with both local guidelines and international frameworks, including those from the Financial Action Task Force (FATF).
The CBN said the draft was informed by a detailed assessment of existing AML tools currently in use across the sector and incorporates best practices from other jurisdictions. It added that stakeholder feedback is being sought to enrich the document, and comments are to be submitted by June 13, 2025.
The standards are designed to be comprehensive and will apply to a wide range of institutions regulated by the CBN. This includes deposit money banks, microfinance banks, primary mortgage banks, digital payment service providers, and any other entity that falls under the AML/CFT/CPF regulatory framework.
The CBN said it will monitor adherence through regular inspections and validation exercises. Institutions found to be non-compliant after the 12-month implementation window risk facing regulatory sanctions and penalties.