The Central Bank of Nigeria (CBN) has formally introduced the institution of a devoted Compliance Division, marking a major step in its ongoing efforts to reinforce regulatory effectiveness and streamline supervisory duties.
Based on a round signed by Olubunmi Ayodele-Oni, the brand new division was created in Q1 2025, with full operational duties commencing in Q2 2025.
The transfer is a part of a broader structural reform aimed toward consolidating oversight features, clarifying institutional roles, and guaranteeing centered supervision of non-prudential and rising dangers.
Compliance Division Key Focus
The Compliance Division now oversees the next key areas:
- Monetary Crime Supervision — together with Anti-Cash Laundering (AML), Counter Financing of Terrorism (CFT), Counter-Proliferation Financing (CPF), and sanctions compliance
- Market Conduct Supervision — protecting disclosure practices, complaints administration, and promoting requirements
- Enterprise Safety Supervision — together with cybersecurity, information safety, and third-party danger administration
- Company Governance and ESG Supervision — specializing in board effectiveness and environmental, social, and governance oversight
Directive to All Regulated Monetary Establishments
The CBN has directed all regulated monetary establishments to channel future studies, correspondence, and inquiries associated to those areas to the Director of the Compliance Division by way of established communication protocols.
Establishments will obtain additional steering on designated factors of contact and submission procedures straight from the Division.
“The institution of the Compliance Division is a strategic transfer to embed regulatory self-discipline and guarantee strong oversight of non-prudential dangers,” the round said.
The CBN reaffirmed its dedication to working collaboratively with monetary establishments to make sure a easy transition and uphold the best requirements of regulatory compliance.
Vital Rise in Monetary Fraud Instances
In July, the CBN raised the alarm over a major rise in monetary fraud circumstances within the nation, revealing that fraud surged by 45% inside one 12 months, with 70% of the ensuing losses traced to digital channels, significantly unregulated digital asset platforms.
This was disclosed by the CBN Governor, Olayemi Cardoso, in a speech delivered on his behalf by Muhammad Sani Abdullahi, Deputy Governor for Financial Coverage, at a public lecture organized by the Financial and Monetary Crimes Fee (EFCC).
He added that findings from the CBN’s Monetary Stability Report 2024 reveal a pointy improve in fraud
Cardoso famous that whereas digital innovation has enabled broader monetary inclusion, it has additionally launched advanced regulatory and safety challenges.
What You Ought to Know
- Lately, the CBN issued a directive mandating all contributors within the nation’s fee ecosystem to finish migration to the ISO 20022 messaging normal and implement necessary geo-tagging of fee terminals by October 31, 2025.
- In a round revealed on its official web site, the apex bank reminded Deposit Cash Banks (DMBs), Microfinance Banks (MFBs), Cellular Cash Operators (MMOs), Switching and Processing Firms, Cost Terminal Service Suppliers (PTSPs), Cost Resolution Service Suppliers (PSSPs), Tremendous Brokers, and different licensed operators that ISO 20022 is now the worldwide benchmark for funds messaging.
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