The Central Bank of Nigeria has given Deposit Money Banks 18 months to fully comply with its new baseline standards for automated anti-money laundering solutions, while other financial institutions have 24 months from March 10, 2026, to meet the requirements.
The PUNCH observed that this represents an extension from the previously reported 12 months, when the apex bank first proposed the guidelines.
In a circular dated March 10, 2026, the CBN said, “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.”
The circular, titled Issuance of Baseline Standards for Automated Anti-Money Laundering Solution for Financial Institutions in Nigeria, was signed by CBN’s Director of Banking Supervision Department, Akinwunmi Olubukola, and Olubunmi Ayodele-Oni for the Director, Compliance Department. It was addressed to all banks, mobile money operators, international money transfer operators, other financial institutions, and payment service providers.
The CBN also directed institutions to submit implementation roadmaps to its Compliance Department within three months from the date of issuance, tightening the transition timetable for the new compliance regime.
The regulator said the standards were issued to promote financial system stability and integrity, noting that the framework covers automated solutions for AML, combating the financing of terrorism, and countering proliferation financing in Nigeria.
“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 bank stated.
All banks and financial institutions under the CBN’s purview must operate automated AML solutions, although the sophistication of each system will depend on the institution’s size, risk profile, business model, transaction volumes, and complexity. The standards are anchored on the CBN Act, 2007, and the Banks and Other Financial Institutions Act, 2020, and are meant to complement, not replace, existing legal obligations.
The CBN stressed that manual controls are no longer sufficient as financial services become more digitised and complex. Institutions must deploy systems that support risk-based customer due diligence, enable timely detection of suspicious activities, and facilitate accurate and timely reporting to the CBN, the Nigerian Financial Intelligence Unit, and other authorities.
The standards align with Financial Action Task Force recommendations and include system requirements, transaction monitoring, customer due diligence, know-your-customer and know-your-business processes, sanctions and politically exposed persons screening, reporting, case management, audit trails, data security, vendor management, fraud monitoring, unified customer risk views, and system integration and scalability.
High-risk sectors or subsectors must apply enhanced monitoring capabilities, ensuring AML systems integrate with KYC/KYB repositories and customer risk profiles. Institutions must support customer identification, risk assessment, sanctions screening, transaction monitoring, case management, reporting, audit, governance, and data protection.
The standards also encourage AI, machine learning, and advanced analytics with independent annual validation, accuracy checks, fairness audits, and bias testing.
The CBN required tamper-proof audit trails, role-based workflows, secure authentication, and compliance with the Nigeria Data Protection Act. Third-party and vendor management policies must cover procurement, implementation, support, incident handling, and exit strategies.
Institutions seeking fresh authorisation must demonstrate compliance or present credible plans to meet the standards. Compliance will be monitored through off-site surveillance, on-site examinations, thematic reviews, and other supervisory mechanisms.
The bank warned that failure to meet the standards could result in remedial directives, administrative sanctions, and penalties under existing laws, affecting both institutions and accountable individuals.
“All stakeholders are required to ensure strict compliance with the guidelines and all other regulations, as the CBN continues to monitor developments and issue further guidance as may be appropriate,” the apex bank added.
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