The CBN has intensified terrorism financing supervision, tightening scrutiny of transaction monitoring, sanctions and suspicious transaction reporting
CBN Tightens Terrorism Financing Supervision, Targets Suspicious Transactions
The Central Bank of Nigeria (CBN) has stepped up its supervision of terrorism financing, placing tighter scrutiny on financial institutions as part of efforts to prevent Nigeria’s financial system from being exploited by illicit actors.
The apex bank disclosed this in a statement signed by its Acting Director, Corporate Communications and Investor Relations Department, Sidi-Ali Hakama.
According to the CBN, terrorism financing supervision has now become a current priority, with financial institutions expected to strengthen their risk management systems, transaction monitoring and compliance with targeted financial sanctions.
The regulator also said greater attention would be paid to the reporting of suspicious transactions linked to terrorism financing as part of broader measures to protect the integrity of the financial system.
“The Central Bank of Nigeria has elevated terrorism financing supervision to a current supervisory priority, as part of its ongoing commitment to protecting the Nigerian financial system from abuse by illicit actors,” the bank said.
The CBN said its intensified supervision would extend to measures designed to combat money laundering, terrorism financing and proliferation financing across the financial sector.
It explained that the supervisory framework would continue to be risk-based, combining on-site and off-site engagements to assess the effectiveness of controls put in place by financial institutions.
“The Bank will continue to apply a risk-based supervisory approach, including on-site and off-site engagement, to support effective AML/CFT/CPF controls across the financial sector in line with existing legal and regulatory obligations,” it stated.
The latest move is part of the CBN’s broader financial integrity efforts and is expected to reinforce Nigeria’s domestic and international cooperation in tackling illicit financing networks.
The apex bank said the initiative would also strengthen efforts against terrorism financing and proliferation financing while supporting the protection of Nigeria’s financial system from abuse.
“This supervisory focus also supports Nigeria’s ongoing domestic and international cooperation on counter-terrorism financing, counter-proliferation financing, financial integrity, and the protection of the financial system,” the bank said
