CBN Enhances Supervision on Terrorism Financing Risks

The Central Bank of Nigeria (CBN) has announced an intensified supervisory focus on terrorism financing risks within the financial sector, as stated in a press release signed by Acting Director of Corporate Communications and Investor Relations, Hakama Sidi-Ali, on Tuesday. The CBN has elevated terrorism financing supervision to a current supervisory priority, emphasizing its commitment to safeguarding the Nigerian financial system from exploitation by illicit actors.

The supervisory focus will encompass four key areas: terrorism financing risk management, transaction monitoring, implementation of targeted financial sanctions, and suspicious transaction reporting related to terrorism financing. The CBN will adopt a risk-based supervisory approach, utilizing both on-site and off-site engagements.

Additionally, the CBN has directed banks and financial institutions to freeze all accounts linked to six individuals and four Bureau De Change (BDC) operators designated for terrorism financing. Earlier in the year, the CBN introduced stricter controls on fraudulent transactions and identity management within the banking system.