CBN Intensifies Crackdown on Terror Financing in Banks

On September 9, the Central Bank of Nigeria (CBN) announced a significant crackdown on terrorism financing, designating it as a current supervisory priority. This initiative involves placing banks and financial institutions under tougher regulatory oversight to safeguard Nigeria’s financial system from exploitation by illicit actors.

The CBN, through a statement signed by the Acting Director of Corporate Communications and Investor Relations, Mrs. Hakama Sidi-Ali, emphasized the need for enhanced compliance with anti-money laundering and counter-terrorism financing regulations. The supervisory focus will include evaluating institutions' terrorism financing risk management frameworks, transaction monitoring processes, and the implementation of targeted financial sanctions.

The CBN aims to prevent terrorist groups and criminal organizations from using the financial system to move or conceal illicit funds. The approach will combine on-site inspections with off-site monitoring to assess compliance with existing Anti-Money Laundering, Counter-Terrorism Financing, and Counter-Proliferation Financing obligations.