According to reporting by The Punch, the Central Bank of Nigeria (CBN) has issued enhanced compliance guidelines instructing financial institutions to step up monitoring of high-risk transactions and suspected illicit money flows. The directive requires commercial banks, payment processors, and non-bank financial institutions to strictly enforce customer due diligence and report suspicious transaction patterns without delay.
The regulator’s renewed directive aims to close structural vulnerabilities used by criminal networks to channel funding. Under the mandatory framework, financial service providers must implement automated tracking systems to detect unauthorized high-volume transfers and conduct enhanced due diligence on politically exposed persons and cross-border transactions.
Financial analysts suggest that stricter banking surveillance will bolster international confidence in Nigeria’s financial systems. The measure also aligns with broader efforts to comply with international financial task force standards and protect the banking sector from illicit capital flows.
As reported by *Leadership*, “the central bank’s directive mandates strict transaction tracking across all deposit money banks to curb illicit funding trails.” Furthermore, *ThisDay* noted that “financial compliance officers have been instructed to accelerate real-time reporting to regulatory intelligence units.”
Echotitbits take:
Tighter transaction surveillance protects the banking sector’s integrity and supports national security efforts. However, commercial banks must ensure these strict compliance measures do not cause unnecessary friction or delay legitimate business transactions.
Source: The Punch – https://punchng.com/cbn-tightens-surveillance-on-banks-over-terrorism-financing/, September 9, 2026
Photo credit: The Guardian
