CBN Enhances Surveillance on Banks for Terrorism Financing

The Central Bank of Nigeria (CBN) has announced an intensified surveillance initiative targeting banks and financial institutions to mitigate terrorism financing risks. This directive, disclosed in a press statement on Tuesday and signed by Hakama Sidi-Ali, Acting Director of the Corporate Communications and Investor Relations Department, elevates terrorism financing supervision to a current supervisory priority.

The CBN's focus will encompass four key areas: terrorism financing risk management, transaction monitoring, implementation of targeted financial sanctions, and reporting of suspicious transactions. Financial institutions are expected to maintain systems capable of identifying unusual transactions and comply with anti-money laundering and counter-terrorism financing requirements.

The CBN will employ a risk-based supervisory approach, combining on-site examinations with off-site monitoring to ensure effective controls across the financial sector. This heightened scrutiny is part of Nigeria's broader efforts to combat financial crimes and prevent illicit actors from exploiting the financial system.