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From Adanna Nnamani, Abuja
The Central Bank of Nigeria (CBN) has intensified its supervision of terrorism financing risks across the country’s financial system as part of efforts to prevent illicit actors from abusing banks and other financial institutions.
The apex bank said terrorism financing has become a key supervisory priority, alongside anti-money laundering, counter-proliferation financing and broader financial integrity measures.
The move is aimed at strengthening the ability of financial institutions to identify, monitor and report transactions linked to terrorism financing and other illicit financial activities.
Under the enhanced supervisory focus, the CBN said it would pay closer attention to terrorism financing risk management, transaction monitoring, implementation of targeted financial sanctions and the reporting of suspicious transactions related to terrorism financing.
The Bank said the measures were part of its ongoing commitment to protecting the Nigerian financial system from abuse while ensuring that financial institutions comply with existing legal and regulatory requirements.
The CBN will apply a risk-based supervisory approach, using both on-site and off-site examinations to assess the effectiveness of anti-money laundering, counter-terrorism financing and counter-proliferation financing controls within regulated institutions.
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This means financial institutions may face increased scrutiny of their systems for detecting unusual transactions, assessing customers’ risks and promptly reporting suspicious activities to the relevant authorities.
The apex bank said the supervisory approach would also support Nigeria’s continuing domestic and international cooperation in the fight against terrorism financing and other forms of illicit finance.
The CBN noted that effective financial controls are critical to safeguarding the integrity of the financial system, particularly as criminals and terrorist networks continue to seek ways to move and conceal funds through legitimate financial channels.
It said further supervisory engagement with financial institutions would be undertaken where necessary to ensure compliance and address identified weaknesses.
The latest move reinforces the CBN’s role in Nigeria’s broader anti-money laundering and counter-terrorism financing framework and comes as the country continues efforts to strengthen its financial system against illicit financial flows.
Through the enhanced supervision, banks and other regulated financial institutions are expected to maintain stronger controls, improve transaction monitoring and ensure timely reporting of suspicious transactions, while implementing applicable targeted financial sanctions.
The CBN said its risk-based approach would remain focused on ensuring that financial institutions effectively manage their exposure to terrorism financing and other financial integrity risks.
