Nigeria’s Central Bank Calls for Stronger Compliance Frameworks to Curb Illicit Financial Flows
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The Central Bank of Nigeria (CBN) has urged financial institutions to enhance their compliance frameworks and align with global banking standards to combat illicit financial flows and uphold the integrity of the financial system.
This call was made during the Mandatory Compliance and Anti-Money Laundering (AML) Training Workshop held in Lagos on February 28, 2025, in collaboration with Citi. The workshop convened compliance officers, trade operations specialists, and correspondent banking teams from various financial institutions to discuss regulatory trends, financial risks, and best practices in compliance.
In a statement issued on Sunday, the CBN reaffirmed its commitment to strengthening regulatory oversight and ensuring that Nigerian banks implement dynamic, risk-based Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) programmes in line with global standards.
CBN Urges Banks to Strengthen Risk-Based Compliance
Speaking at the event, Shola Phillips, Special Adviser to the CBN Governor on Compliance, emphasized the need for financial institutions to adopt compliance frameworks that align with international best practices.
She highlighted that correspondent banking relationships increasingly rely 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,” she stated.
Phillips further warned that failure to adhere to global compliance standards could subject Nigerian banks to increased scrutiny from international financial institutions, potentially limiting their access to global banking networks.
Global Banking Executives Highlight Compliance Risks
During the workshop, Siobhan Ni Ealaithe, Managing Director of Citi’s Correspondent Banking Group, emphasized the critical role of robust governance frameworks in mitigating financial risks.
She stressed that compliance protocols such as Know Your Customer (KYC), Know Your Business (KYB), and Know Your Transaction (KYT) are vital in preventing illicit financial flows and ensuring transparency in financial transactions.
Similarly, Stephanie Bailey, Head of EMEA AML Risk Management for Foreign Correspondent Banking, cautioned against the rising risks of financial crime, revealing that an estimated $3 trillion in illicit funds circulates through the global financial system each year.
Bailey urged Nigerian banks to strengthen their due diligence processes, leverage technology-driven risk assessments, and uphold transparency in financial dealings to align with international regulatory expectations.
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The Central Bank of Nigeria (CBN) has urged financial institutions to enhance their compliance frameworks and align with global banking standards to combat illicit financial flows and uphold the integrity of the financial system.
This call was made during the Mandatory Compliance and Anti-Money Laundering (AML) Training Workshop held in Lagos on February 28, 2025, in collaboration with Citi. The workshop convened compliance officers, trade operations specialists, and correspondent banking teams from various financial institutions to discuss regulatory trends, financial risks, and best practices in compliance.
In a statement issued on Sunday, the CBN reaffirmed its commitment to strengthening regulatory oversight and ensuring that Nigerian banks implement dynamic, risk-based Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) programmes in line with global standards.
CBN Urges Banks to Strengthen Risk-Based Compliance
Speaking at the event, Shola Phillips, Special Adviser to the CBN Governor on Compliance, emphasized the need for financial institutions to adopt compliance frameworks that align with international best practices.
She highlighted that correspondent banking relationships increasingly rely 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,” she stated.
Phillips further warned that failure to adhere to global compliance standards could subject Nigerian banks to increased scrutiny from international financial institutions, potentially limiting their access to global banking networks.
Global Banking Executives Highlight Compliance Risks
During the workshop, Siobhan Ni Ealaithe, Managing Director of Citi’s Correspondent Banking Group, emphasized the critical role of robust governance frameworks in mitigating financial risks.
She stressed that compliance protocols such as Know Your Customer (KYC), Know Your Business (KYB), and Know Your Transaction (KYT) are vital in preventing illicit financial flows and ensuring transparency in financial transactions.
Similarly, Stephanie Bailey, Head of EMEA AML Risk Management for Foreign Correspondent Banking, cautioned against the rising risks of financial crime, revealing that an estimated $3 trillion in illicit funds circulates through the global financial system each year.
Bailey urged Nigerian banks to strengthen their due diligence processes, leverage technology-driven risk assessments, and uphold transparency in financial dealings to align with international regulatory expectations.
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