CBN launches compliance department to strengthen fight against financial crime
Story by Martha Gwary
The Central Bank of Nigeria (CBN) has unveiled a dedicated Compliance Department to enhance oversight of non-prudential risks across the nation’s financial system.
This new unit underscores the apex bank’s commitment to reinforcing regulatory frameworks in response to evolving threats and compliance challenges.
In a circular issued to regulated financial institutions on Thursday, the CBN disclosed that the department was set up in the first quarter of 2025 and became fully operational in the second quarter.
The initiative forms part of wider structural reforms aimed at improving regulatory efficiency, clarifying institutional responsibilities, and ensuring targeted supervision of emerging and non-traditional risks.
Nigeria’s financial sector has, in recent years, come under mounting pressure from international regulatory standards, technological vulnerabilities, and the increasing sophistication of financial crimes.
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Non-prudential risks such as money laundering, cyberattacks, market misconduct, and weak corporate governance continue to pose serious threats to financial stability and investor confidence.
“This structural reform is part of the Bank’s broader effort to consolidate regulatory effectiveness within existing supervisory frameworks, define institutional roles more clearly, and maintain focused oversight of non-prudential and emerging risks,” the CBN said.
According to the bank, the Compliance Department has assumed responsibilities in four critical areas:
Financial crime supervision, including anti-money laundering, counter-terrorism financing, counter-proliferation financing, and sanctions compliance.
Market conduct supervision, covering disclosure practices, complaints management, and advertising standards.
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Enterprise security supervision, addressing cybersecurity, data protection, and third-party risk management.
Then corporate governance and ESG oversight, focusing on board effectiveness with environmental, social, and governance compliance.
The regulator further advised that all regulatory reports, correspondence, and related inquiries on these matters should be directed to the Director of the Compliance Department through established communication channels. Institutions will also receive detailed guidance on designated points of contact and submission procedures.
The CBN reaffirmed its commitment to working closely with financial institutions to ensure a seamless transition and uphold the highest standards of regulatory compliance.
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