CBN Enhances Supervision on Terrorism Financing Risks

On September 8, 2026, the Central Bank of Nigeria (CBN) announced a new supervisory priority focusing on the identification, monitoring, and reporting of terrorism financing risks by banks and other regulated financial institutions. This initiative is part of the CBN's broader effort to safeguard Nigeria's financial system from exploitation by illicit actors.

The CBN's supervisory focus will encompass four key areas: terrorism financing risk management, transaction monitoring, implementation of targeted financial sanctions, and reporting of terrorism financing-related suspicious transactions. The CBN clarified that it would not introduce new banking rules but would enhance its supervisory engagement within existing legal frameworks.

The approach will be risk-based, emphasizing the effectiveness of financial institutions in managing terrorism financing risks. Additionally, banks will face increased scrutiny regarding their transaction monitoring systems to detect potential terrorism financing activities, although no specific new transaction thresholds were disclosed.