The Central Bank of Nigeria (CBN) has given deposit money banks an 18-month deadline to fully comply with new baseline standards.
The baseline standards require the deployment of automated anti-money laundering (AML) solutions aimed at strengthening the fight against financial crimes in the country.
The CBN have the directive in a circular dated March 10 and addressed to banks, mobile money operators, international money transfer operators, payment service providers and other financial institutions.
The apex bank stated that the new standards are designed to improve the detection and reporting of suspicious financial transactions across Nigeria’s financial system.
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Other financial institutions were given a longer 24-month compliance window, while all affected institutions must submit their implementation roadmaps to the CBN’s compliance department within three months from the date of issuance.
The circular was jointly signed by the Director of the Banking Supervision Department, Akinwunmi Olubukola, and the Director of the Compliance Department, Olubunmi Ayodele-Oni.
According to the CBN, the new Baseline Standards for Automated Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing Solution provide a framework for financial institutions to adopt automated systems capable of detecting suspicious transactions in real time.
“The Baseline Standards provide a framework for implementing automated solutions that strengthen the detection and reporting of suspicious transactions in real time and enhance compliance with applicable AML/CFT/CPF laws and regulations,” CBN said.
The regulator added that the framework also supports the use of emerging technologies to improve financial crime risk management and strengthen the stability and integrity of the country’s financial system.
The guidelines take effect immediately, with the CBN directing all stakeholders to ensure strict compliance while it continues to monitor developments and issue further guidance where necessary.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
