CBN asks banks, fintechs to tighten sanctions list checks 

In a letter dated April 17, 2025, and signed by Amonia Opusunju for the Director of the Compliance Department, the CBN directed all financial institutions to ensure strict adherence to sanctions lists maintained at both international and national levels.

These include the United Nations Consolidated Sanctions List, the Nigerian Sanctions List in line with the Terrorism (Prevention and Prohibition) Act 2022, and guidelines on targeted financial sanctions related to terrorism and its financing.

According to the apex bank, financial institutions are expected to regularly update their systems to identify designated persons or entities and prevent the misuse of financial platforms to facilitate illegal transactions.

The CBN’s directive also covers real-time screening of customers, transactions, and beneficial owners. Where necessary, institutions are to report suspicious activities to the Nigerian Financial Intelligence Unit (NFIU) and notify the apex bank.

The regulator stressed that failure to meet these obligations could lead to enforcement actions or regulatory penalties. It added that sanctions compliance frameworks must be periodically reviewed and aligned with prevailing laws and regulatory expectations.

The reminder, which comes amid increased global attention to financial crime risks, sends a clear message that compliance is non-negotiable.

It also reflects Nigeria’s efforts to improve its standing with international financial watchdogs such as the Financial Action Task Force (FATF), especially in areas like anti-money laundering (AML) and combating the financing of terrorism (CFT).

For fintech companies and other emerging players in the financial ecosystem, the CBN’s warning emphasises the need to integrate compliance mechanisms into their technology stacks and customer onboarding processes.

In its concluding remarks, the CBN advised all financial institutions to take note of the guidance and act accordingly.

“This letter serves as a regulatory reminder and all Financial Institutions are expected to ensure continued compliance with applicable laws and CBN directives,” the apex bank stated. 

This reminder puts financial institutions on high alert and reinforces the CBN’s commitment to strengthening the integrity of Nigeria’s financial system.