CBN Establishes Compliance Department to Strengthen Financial System Oversight
The Central Bank of Nigeria (CBN) has announced the establishment of a dedicated Compliance Department to provide stronger supervision of non-prudential risks across the financial sector.
According to a circular issued to financial institutions on Thursday, the unit was created in the first quarter of 2025 and became fully operational in the second quarter.
The apex bank explained that the move is part of its structural reforms designed to sharpen regulatory efficiency, streamline institutional responsibilities, and maintain closer monitoring of emerging threats.
In recent years, Nigeria’s financial sector has come under pressure from global regulatory benchmarks, sophisticated financial crimes, and growing cyber threats.
The CBN noted that non-prudential risks such as money laundering, cyberattacks, poor market practices, and weak corporate governance undermine both financial stability and investor confidence.
“This structural reform forms part of the Bank’s broader efforts to consolidate and embed regulatory effectiveness within existing supervisory frameworks, clarify institutional responsibilities, and maintain focused oversight of non-prudential and emerging risks,” the statement read.
The new department will take responsibility for four critical areas of compliance:
Financial crime supervision covering anti-money laundering (AML), counter-terrorism financing, counter-proliferation financing, and sanctions compliance, market conduct supervision focusing on disclosure practices, complaints handling, and advertising standards, enterprise security supervision including cybersecurity, data protection, and third-party risk management, corporate governance and ESG oversight covering board performance and environmental, social, and governance (ESG) responsibilities.
The apex bank directed that all regulatory submissions, correspondence, and compliance-related inquiries should now be routed through the department’s director, with institutions to receive guidance on specific points of contact.
The CBN also appealed for continued cooperation from banks and other regulated entities to ensure a smooth transition and uphold best practices across the sector.
The announcement comes as the central bank intensifies reforms in digital payments, including its recent clampdown on PoS-related fraud through geo-tagging and the adoption of global standards for traceability in financial transactions.
Punch
