By Seun Ibiyemi
Amid rising financial crime concerns, the Central Bank of Nigeria has introduced new technology-driven regulations requiring banks and other financial institutions to deploy automated anti-money laundering (AML) systems to strengthen the detection of suspicious financial transactions across the country.
The directive was contained in a circular issued on March 10, 2026, to banks, mobile money operators, international money transfer operators, payment service providers and other financial institutions operating within Nigeria’s financial system.
According to the apex bank, the policy establishes baseline standards for automated anti-money laundering solutions designed to improve the monitoring and reporting of financial crimes as Nigeria’s financial ecosystem becomes increasingly digitised.
The CBN stated that the new framework is intended to ensure financial institutions adopt modern technology to combat money laundering, terrorism financing and proliferation financing while strengthening compliance with existing financial crime regulations.
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“The baseline standards provide a framework for implementing automated solutions that strengthen the detection and reporting of suspicious transactions in real time and enhance compliance with applicable AML/CFT/CPF laws and regulations, while also supporting the use of emerging technologies to improve overall financial crime risk management,” the circular said.
The directive was signed by the Director of the Banking Supervision Department, Akinwunmi A. Olubukola, and Olubunmi Ayodele-Oni on behalf of the Director of the Compliance Department.
Under the new framework, financial institutions are required to deploy automated anti-money laundering systems that integrate customer identification, transaction monitoring, sanctions screening and risk assessment capabilities.
The CBN explained that the standards apply to all institutions under its regulatory supervision, including banks, payment service providers and other licensed financial operators.
Implementation of the guidelines takes effect immediately. However, deposit money banks have been given 18 months to achieve full compliance, while other financial institutions have up to 24 months to implement the required systems.
The regulator also directed financial institutions to submit implementation roadmaps within three months from the date the circular was issued.
“The implementation of these guidelines shall start from the date of issuance, while full compliance shall be 18 months for Deposit Money Banks and 24 months for Other Financial Institutions from the date of issuance,” the circular stated.
The new standards emphasise the use of advanced technologies such as artificial intelligence, machine learning, predictive analytics and behavioural monitoring to strengthen the detection of suspicious financial activity.
Financial institutions are also required to deploy systems capable of conducting risk-based customer due diligence, monitoring transactions across multiple channels and screening customers against sanctions lists and politically exposed persons databases.
In addition, the guidelines mandate that automated systems integrate with core banking platforms and customer identity databases to enable real-time analysis of transaction patterns.
The apex bank noted that as financial services become more digital and complex, traditional manual monitoring processes are no longer sufficient to address evolving financial crime risks.
Under the framework, institutions must also ensure timely reporting of suspicious activities to regulatory authorities, including the Nigerian Financial Intelligence Unit.
The guidelines further require financial institutions to establish governance structures to monitor system performance, validate artificial intelligence models and ensure compliance with Nigeria’s data protection laws.
The CBN warned that institutions that fail to comply with the new standards or operate ineffective anti-money laundering systems risk facing regulatory sanctions.
According to the regulator, compliance will be monitored through off-site surveillance, on-site examinations and thematic regulatory reviews.
The framework also mandates financial institutions to maintain detailed audit trails and case management systems to track investigations into suspicious transactions and financial crime alerts.
The central bank said the standards represent the minimum compliance threshold, adding that institutions may be required to adopt stronger controls depending on their risk exposure, transaction volumes and operational complexity.
With Nigeria’s financial sector expanding rapidly through digital payments, fintech services and mobile banking, the new regulations signal a broader regulatory push to strengthen financial crime prevention and safeguard the integrity of the country’s financial system.
