CBN elevates terrorism financing risk to supervisory priority
By Abiodun Folarin
The Central Bank of Nigeria (CBN), has elevated terrorism financing risk to a current supervisory priority, intensifying its oversight of financial institutions as part of efforts to prevent the country’s financial system from being exploited by illicit actors.
The apex bank said the enhanced supervisory focus would 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.
In a statement on Tuesday, signed by the Acting Director, Corporate Communications and Investor Relations Department, Hakama Sidi-Ali, the CBN said the initiative forms part of its ongoing commitment to strengthening the integrity and resilience of Nigeria’s financial system.
According to the Bank, it will continue to deploy a risk-based supervisory approach, combining on-site and off-site engagements, to assess and support the effectiveness of Anti-Money Laundering, Countering the Financing of Terrorism and Countering Proliferation Financing (AML/CFT/CPF) controls across the financial sector.
The CBN said the supervisory measures would be implemented in line with existing legal and regulatory obligations governing financial institutions.
The Bank further noted that the enhanced focus aligns with Nigeria’s domestic and international cooperation efforts on counter-terrorism financing, counter-proliferation financing and broader financial integrity.
It added that the measures are also aimed at protecting the financial system from abuse by individuals and organisations seeking to channel funds through legitimate financial channels for illicit purposes.
“Further supervisory engagement will be undertaken as appropriate,” the CBN stated.
The latest move signals increased regulatory attention on how banks and other supervised financial institutions identify, monitor and report transactions that may expose the financial system to terrorism financing risks.
