CBN Warns Banks, Fintechs Over Weak Sanctions Compliance

Samuel Mobolaji

The Central Bank of Nigeria (CBN) has issued a stern warning to banks, payment service banks, and fintech companies, directing them to strengthen their sanctions screening systems or face regulatory penalties.

In a circular dated April 17, 2025, signed by Amonia Opusunju for the Director of Compliance, the apex bank ordered all financial institutions to ensure strict, real-time checks against both global and national sanctions lists — including the United Nations Consolidated Sanctions List and Nigeria’s Terrorism (Prevention and Prohibition) Act 2022 watchlist.

The CBN stressed that financial platforms must not be exploited to process transactions involving individuals or entities flagged for terrorism financing or other illicit activities. Institutions are required to maintain “robust and dynamic” compliance frameworks capable of quickly adapting to updates across all relevant sanctions lists.

Financial institutions must conduct real-time screening of customers, transactions and beneficial owners, promptly report suspicious activities to the Nigerian Financial Intelligence Unit (NFIU) and notify the CBN where necessary, the regulator said.

The CBN warned that non-compliance could trigger regulatory sanctions, including enforcement actions, underlining that institutions must continuously review and update their compliance programmes in line with evolving legal and regulatory requirements.

The reminder comes amid growing global scrutiny of financial crime risks and Nigeria’s push to improve its anti-money laundering and counter-terrorism financing framework, especially under the watch of international bodies like the Financial Action Task Force (FATF).

For fintechs and emerging players, the CBN’s directive sends a clear signal: compliance is as critical as innovation, and weak internal systems will not be excused.

“All financial institutions are expected to ensure continued compliance with applicable laws and CBN directives,” the apex bank stated.

The move highlights the CBN’s commitment to safeguarding the integrity of Nigeria’s financial system as regulatory oversight tightens across the sector.