CBN elevates terrorism financing supervision to priority regulatory focus

The Central Bank of Nigeria has moved terrorism financing supervision to the top tier of its regulatory priorities, signaling a coordinated effort to prevent the country's financial system from becoming a conduit for illicit funding. The decision was announced Tuesday through an official statement from the apex bank's corporate communications office.

The supervisory shift encompasses four main areas: risk management protocols for terrorism financing, real-time monitoring of financial transactions, enforcement of targeted financial sanctions regimes, and the reporting of transactions flagged as suspicious in connection with terrorism activities. Banks and other financial institutions across Nigeria will face heightened scrutiny in these domains.

This intensified focus reflects the CBN's determination to fortify the financial system against exploitation by non-state actors and criminal networks. The measure aligns Nigeria's domestic regulatory framework with international counter-terrorism financing standards, supporting both local and cross-border compliance efforts in the sector.

The CBN's supervisory framework will apply a risk-based approach across institutions, with particular attention paid to transaction patterns and compliance documentation. Financial institutions have been placed on notice that terrorism financing compliance will remain an elevated area of examination and oversight.