The Central Bank of Nigeria (CBN) has again warned banks, payment service banks, and fintech companies on the need to reinforce their sanctions compliance frameworks or risk regulatory sanctions.
In a letter dated April 17, 2025, and signed by Amonia Opusunju for the Director of the Compliance Department, the CBN directed all financial institutions to ensure strict adherence to sanctions lists maintained at both international and national levels.
These include the United Nations Consolidated Sanctions List, the Nigerian Sanctions List in line with the Terrorism (Prevention and Prohibition) Act 2022, and guidelines on targeted financial sanctions related to terrorism and its financing.
According to the apex bank, financial institutions are expected to regularly update their systems to identify designated persons or entities and prevent the misuse of financial platforms to facilitate illegal transactions.
“Financial Institutions are required to maintain a robust and dynamic sanctions compliance framework that enables them to Identify and respond promptly to updates or changes across all applicable sanctions lists; Prevent the use of their systems and platforms for transactions involving designated individuals or entities; Conduct real-time screening of customers, transactions, and beneficial owners; and File appropriate reports with the Nigerian Financial Intelligence Unit (NFIU) and notify the CBN, where necessary,” the letter read.
The CBN’s directive also covers real-time screening of customers, transactions, and beneficial owners. Where necessary, institutions are to report suspicious activities to the Nigerian Financial Intelligence Unit (NFIU) and notify the apex bank.
