Terrorism financing supervision now a key regulatory priority — CBN
The Central Bank of Nigeria (CBN) has revealed that supervisory focus on terrorism financing is now a key priority.
The apex bank in a statement issued on Tuesday by the Acting Director of the Corporate Communications and Investor Relations Department, Sidi-Ali, Hakama (Mrs) said the decision was part of its commitment to ensuring that financial institutions maintain strong measures against money laundering, terrorism financing and proliferation financing.
According to the apex Bank, the enhanced supervisory focus will cover key areas including terrorism financing risk management, transaction monitoring, implementation of targeted financial sanctions and the reporting of suspicious transactions linked to terrorism financing.
“The Central Bank of Nigeria has elevated terrorism financing supervision to a current supervisory priority, as part of its ongoing commitment to protecting the Nigerian financial system from abuse by illicit actors,” the Bank said.
The development comes amid growing concerns about the use of financial institutions and other channels by criminal networks to move funds and support unlawful activities.
The CBN said its approach would involve closer engagement with operators in the financial sector to ensure that adequate measures are in place to identify, monitor and report transactions that may be connected to terrorism financing.
It added that the supervisory focus would be implemented through a risk-based approach, which would include both on-site and off-site engagement with relevant institutions.
“The Bank will continue to apply a risk-based supervisory approach, including on-site and off-site engagement, to support effective AML/CFT/CPF controls across the financial sector in line with existing legal and regulatory obligations,” the statement said.
AML/CFT/CPF refers to measures aimed at combating money laundering, terrorism financing and proliferation financing within the financial system.
The CBN noted that financial institutions have an important role to play in preventing criminal elements from exploiting the country’s banking and financial services sector.
By strengthening supervision, the Bank is expected to place greater attention on the systems and procedures adopted by financial institutions to detect unusual transactions and comply with existing regulatory requirements.
The apex bank also said the renewed focus would support Nigeria’s domestic and international efforts in tackling terrorism financing and other forms of illicit financial activities.
“This supervisory focus also supports Nigeria’s ongoing domestic and international cooperation on counter-terrorism financing, counter-proliferation financing, financial integrity, and the protection of the financial system,” the CBN stated.
The move reflects the growing importance of cooperation between regulators, financial institutions and other relevant agencies in addressing financial crimes that could threaten national and economic security.
The Bank further assured stakeholders that additional supervisory engagement would be carried out when necessary as part of efforts to maintain effective controls across the sector.
“Further supervisory engagement will be undertaken as appropriate,” the CBN said.
The renewed supervisory priority signals the CBN’s determination to strengthen financial integrity and ensure that Nigeria’s financial system remains protected from activities linked to terrorism and other illicit transactions.