CENTRAL BANK OF NIGERIA (ANTI-MONEY LAUNDERING AND COMBATING THE FINANCING OF TERRORISM IN BANKS AND OTHER FINANCIAL INSTITUTIONS) REGULATIONS, 2013

Regulations require banks and other financial institutions to implement anti-money laundering and counter-terrorism financing programs, including customer due diligence and transaction monitoring. They target commercial banks, microfinance banks, and Bureau de Change operators. These aim to prevent the Nigerian banking system from being used for money laundering and terrorist financing.

What Is This Policy?

Comprehensive CBN regulations requiring all banks and financial institutions to implement anti-money laundering and counter-terrorism financing programmes, including customer due diligence, transaction monitoring, and reporting.

Who Does It Target?

Commercial banks, microfinance banks, finance companies Bureau de Change operators Mortgage institutions and development finance institutions CBN compliance examination teams

What Does It Aim to Achieve?

Prevent the Nigerian banking system from being used for money laundering and terrorist financing by mandating robust customer identification, transaction monitoring, and suspicious transaction reporting.

Key Features

Customer Due Diligence: All customers must be identified and verified before accounts are opened or services provided. Enhanced Due Diligence: Politically Exposed Persons (PEPs) and high-risk customers require enhanced scrutiny. Transaction Monitoring: Banks must monitor transactions for suspicious patterns and unusual activities. Suspicious Transaction Reporting: Suspicious transactions must be reported to the Nigerian Financial Intelligence Unit (NFIU) within 24 hours.

Current Status

Rollout Stage: Active Coverage: All CBN-licensed financial institutions Beneficiaries: Financial system integrity; national security Funding: Bank compliance costs

How to Access

Banks must establish formal AML/CFT compliance programmes Annual AML/CFT compliance training mandatory for all staff CBN conducts AML/CFT examinations as part of routine bank supervision Application method: Banks implement internally; CBN oversight through examination. NFIU: https://www.nfiu.gov.ng

Important Terms

Failure to report suspicious transactions is a criminal offence for the compliance officer Tipping off a suspect that a report has been made is illegal FATF Recommendations are the international standard underlying these regulations

Official Resources

Website: https://www.cbn.gov.ng Contact: Central Bank of Nigeria (CBN) / Nigerian Financial Intelligence Unit (NFIU)

Legal Framework

The CBN AML/CFT Regulations 2013 are issued under the Central Bank of Nigeria Act 2007 and the Money Laundering (Prohibition) Act (as amended). They operate alongside the EFCC Act 2004, the Terrorism (Prevention) Act, and the FATF 40 Recommendations on anti-money laundering and counter-terrorist financing. The CBN's regulatory authority is reinforced by the Egmont Group framework on financial intelligence sharing and the Basel Committee's Core Principles for Effective Banking Supervision.