CBN orders banks to follow global standards to combat illicit $3 trillion funds flow
The Central Bank of Nigeria (CBN) has directed financial institutions nationwide to strictly comply with global banking standards to help curb the movement of $3 trillion in illicit funds worldwide.
The apex bank stated that adherence to this directive would bolster confidence in Nigeria’s financial sector and enhance its stability.
It reaffirmed its commitment to fostering a transparent and resilient financial system through stringent regulatory compliance and risk management measures.
In a statement released on Sunday, the CBN revealed that Ms. Shola Phillips, Special Adviser to the CBN Governor on Compliance, delivered this message at a high-level Mandatory Compliance and Anti-Money Laundering (AML) Training Workshop over the weekend.
Phillips emphasized the need for financial institutions to proactively adapt to evolving regulatory requirements to maintain integrity and prevent financial crimes.
“Regulators expect financial institutions to maintain dynamic, risk-based AML/CFT programmes that are responsive to the evolving financial environment. Proactive engagement with regulatory developments and the integration of innovative compliance solutions are essential for institutions to meet these expectations effectively,” she stated.
The training brought together compliance officers, trade operations specialists, and correspondent banking teams from various financial institutions. It provided critical insights into global regulatory trends, emerging financial risks, and strategies for maintaining correspondent banking relationships, which are crucial for international transactions.
Speaking at the workshop, Siobhan Ni Ealaithe, Managing Director of Citi’s Correspondent Banking Group, stressed the importance of strong governance frameworks in reducing financial risks. She highlighted the role of Know Your Customer (KYC), Know Your Business (KYB), and Know Your Transaction (KYT) protocols in preventing illicit financial activities.
Stephanie Bailey, Head of EMEA AML Risk Management for Foreign Correspondent Banking, revealed that over $3 trillion in illicit funds circulate through the global financial system annually. She urged financial institutions to strengthen their due diligence measures, use technology-driven risk assessments, and maintain transparency in all transactions to combat financial crime.
According to the CBN, the workshop aligns with Governor Olayemi Cardoso’s vision of strengthening Nigeria’s financial system through regulatory excellence. Governor Cardoso has consistently stressed the importance of trust and integrity in building a robust financial sector.
“A strong financial system is built on trust, and trust is earned through integrity and compliance. The CBN will continue to set high regulatory standards to protect Nigeria’s financial ecosystem and ensure its alignment with global best practices,” he stated.
