LAGOS, Nigeria – April 18, 2025 | SpringNewsNG Media Limited –
The Central Bank of Nigeria (CBN) has issued a stern regulatory directive to commercial banks, payment service banks, and fintech firms, urging immediate reinforcement of their sanctions compliance frameworks—or risk severe enforcement penalties.

In a circular dated April 17, 2025, signed by Amonia Opusunju on behalf of the Director of the Compliance Department, the apex bank reiterated that all financial institutions must uphold compliance with both domestic and international sanctions lists, in accordance with Nigerian laws and global standards.

The directive references key legal instruments, including:

• The United Nations Consolidated Sanctions List
• The Nigerian Sanctions List in line with the Terrorism (Prevention and Prohibition) Act, 2022
• The CBN’s Guidelines on Targeted Financial Sanctions (TFS) related to terrorism and its financing

CBN Outlines Mandatory Compliance Measures

Financial institutions are expected to establish a dynamic and responsive sanctions compliance system that includes:

• Real-time screening of customers, transactions, and beneficial owners
• Prevention of financial dealings with sanctioned persons or entities
• Timely updates and alignment with newly issued or revised sanctions lists
• Mandatory filing of suspicious transaction reports with the Nigerian Financial Intelligence Unit (NFIU) and notification to the CBN when necessary

“All institutions are required to maintain a robust sanctions compliance framework capable of identifying, preventing, and reporting transactions involving designated individuals or entities,” the circular stated.

The CBN emphasized that non-compliance could attract regulatory sanctions, enforcement actions, or other penalties, underlining that sanctions compliance is a legal requirement, not a discretionary measure.

Nigeria Intensifies Crackdown on Financial Crime

This latest directive comes amid growing international scrutiny of financial crime compliance, especially concerning anti-money laundering (AML) and counter-terrorism financing (CTF) standards.

Nigeria is currently working to bolster its global reputation and meet benchmarks set by organizations like the Financial Action Task Force (FATF). As such, regulatory bodies like the CBN are tightening oversight and requiring enhanced compliance protocols across both traditional and digital finance sectors.

The circular also puts fintech companies and digital banks on notice, urging them to integrate robust compliance infrastructure into their operations as innovation accelerates in the financial space.

Strong Warning to All Financial Institutions

The apex bank made it clear that the directive is applicable to all financial operators, and institutions are advised to take urgent steps to align with its provisions to avoid costly regulatory outcomes.

“The effectiveness of a financial institution’s sanctions compliance programme must be regularly assessed and continuously aligned with applicable regulatory and legal expectations,” the CBN stated.

This move signals an anticipated wave of heightened regulatory enforcement, compelling operators to invest in compliance technology, including sanctions screening tools, automated transaction monitoring, and risk-based reporting systems.