CBN cracks down on money laundering with new rules

The Central Bank of Nigeria has introduced new technology-driven regulations requiring banks and other financial institutions to deploy automated anti-money laundering systems to strengthen the detection of suspicious financial transactions across the country.

The directive was contained in a circular issued on March 10, 2026, to banks, mobile money operators, international money transfer operators, other financial institutions, and payment service providers.

According to the apex bank, the policy introduces baseline standards for automated anti-money laundering solutions aimed at improving the monitoring and reporting of financial crimes in Nigeria’s increasingly digitised financial system.

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**What the circular states **

The circular stated that the move is intended to enhance compliance with existing financial crime laws and ensure that institutions deploy modern technology to combat money laundering, terrorism financing, and proliferation financing.

The bank said the new standards provide a framework for institutions to implement automated solutions capable of detecting suspicious transactions in real time.

It stated, “The baseline standards provide a framework for implementing automated solutions that strengthen the detection and reporting of suspicious transactions in real time and enhance compliance with applicable AML/CFT/CPF laws and regulations, while also supporting the use of emerging technologies to improve overall financial crime risk management.”

The circular was signed by the Director of the Banking Supervision Department, Dr Akinwunmi A. Olubukola, and Olubunmi Ayodele-Oni for the Director of the Compliance Department.

**Banks get a timleine to implement AML technology **

Under the new framework, financial institutions are required to implement automated anti-money laundering solutions that integrate customer identification, transaction monitoring, sanctions screening, and risk assessment capabilities.

The CBN explained that the standards apply to all financial institutions under its regulatory supervision, including banks, payment service providers, and other licensed financial operators.

The regulator noted that implementation of the guidelines begins immediately, with institutions expected to achieve full compliance within specific timelines depending on their category.

According to the circular, deposit money banks have been given 18 months to comply fully with the new standards, while other financial institutions have up to 24 months to implement the required systems.

The apex bank added that financial institutions must also submit implementation roadmaps within three months of the date the circular was issued.

_It stated, “The implementation of these guidelines shall start from the date of issuance, while full compliance shall be 18 months (for Deposit Money Banks) and 24-months (for Other Financial Institutions) from the date of issuance.”  _

**AI, real-time monitoring to drive financial crime detection **

The new framework emphasises the use of advanced technologies such as artificial intelligence, machine learning, predictive analytics, and behavioural monitoring to improve the detection of suspicious financial activity.

• Under the standards, financial institutions are required to deploy systems capable of conducting risk-based customer due diligence, monitoring transactions across multiple channels, and screening customers against sanctions and politically exposed persons lists.
• The guidelines also require financial institutions to ensure that automated systems integrate with core banking platforms and customer identity databases to enable real-time analysis of transaction patterns.
• The CBN noted that as financial services become more digital and complex, traditional manual monitoring processes are no longer sufficient to address evolving financial crime risks.
• The regulator said automated solutions must therefore support timely reporting of suspicious activities to regulatory authorities, including the CBN and the Nigerian Financial Intelligence Unit.

In addition, institutions are required to implement governance structures to monitor system performance, validate artificial intelligence models, and ensure data protection in line with Nigeria’s data privacy laws.

**Tougher oversight and sanctions for non-compliance **

The central bank warned that institutions that fail to comply with the new standards or operate ineffective anti-money laundering systems could face regulatory sanctions.

It said compliance with the standards would be monitored through off-site surveillance, on-site examinations, and thematic regulatory reviews.

• The framework also requires financial institutions to maintain detailed audit trails and case management systems to track investigations into suspicious transactions and financial crime alerts.
• The CBN said the standards represent the minimum compliance threshold, and institutions may be required to implement stronger controls depending on their risk profile, transaction volumes, and operational complexity.
• With Nigeria’s financial sector expanding rapidly through digital payments, fintech services, and mobile banking, the new regulations signal a broader push by regulators to strengthen financial crime prevention and protect the integrity of the country’s financial system.