Daniel Adaji
The Central Bank of Nigeria (CBN) has issued a warning to all financial institutions, including banks, payment service providers, and fintech companies, urging them to reinforce their compliance with sanctions lists.
The warning which was delivered in a letter to banks dated April 17, 2025, emphasises that failure to comply could result in severe penalties.
In the document signed by Amonia Opusunju on behalf of the Director of the CBN’s Compliance Department, the apex bank directed financial institutions to adhere to both national and international sanctions regulations.
These include the United Nations Consolidated Sanctions List, Nigeria’s own Sanctions List as specified under the Terrorism (Prevention and Prohibition) Act of 2022, and the guidelines surrounding targeted financial sanctions.
The CBN’s letter called for a proactive approach in identifying designated individuals and entities, stressing the need for continuous updates to systems to prevent the misuse of financial platforms.
The directive clearly stated that financial institutions must maintain “a robust and dynamic sanctions compliance framework” that allows them to monitor and act swiftly on updates to sanctions lists.
Additionally, they must ensure real-time screening of all transactions, customers, and beneficial owners, and report any suspicious activities to the Nigerian Financial Intelligence Unit (NFIU), with further notification to the CBN when required.
“Financial institutions are required to maintain a robust and dynamic sanctions compliance framework that enables them to identify and respond promptly to updates across all applicable sanctions lists,” the apex bank said.
The bank underscored that non-compliance could lead to enforcement actions, ranging from financial penalties to potential operational suspensions.
It further recommended that institutions review their compliance frameworks regularly to keep pace with evolving regulatory requirements.
This directive is part of Nigeria’s broader effort to enhance its anti-money laundering (AML) and counter-financing of terrorism (CFT) measures.
The CBN is aligning these efforts with global standards, particularly those set by the Financial Action Task Force (FATF).