The Central Bank of Nigeria (CBN) 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, payment service providers and other financial institutions under the CBN’s supervision.
According to the apex bank, the policy sets baseline standards for automated anti-money laundering (AML) solutions aimed at improving the monitoring and reporting of financial crimes in Nigeria’s increasingly digitised financial system.
The CBN said the framework is designed to enhance compliance with financial crime laws and ensure institutions adopt modern technologies to combat money laundering, terrorism financing and proliferation financing.
“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,” the circular stated.
The circular was signed by the Director of the Banking Supervision Department, Dr. Akinwunmi A. Olubukola, and Olubunmi Ayodele-Oni on behalf of the Director of the Compliance Department.
Under the new framework, financial institutions must implement automated AML systems capable of integrating customer identification, transaction monitoring, sanctions screening and risk assessment functions.
The CBN said the standards apply to all institutions under its regulatory oversight, including banks, payment service providers and other licensed financial operators.
Implementation begins immediately, with deposit money banks given 18 months to achieve full compliance, while other financial institutions have up to 24 months. Institutions are also required to submit implementation roadmaps within three months of the circular.
The 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 activities.
Financial institutions will also be required to conduct risk-based customer due diligence, monitor transactions across multiple channels and screen customers against sanctions and politically exposed persons lists.
The guidelines further mandate integration of automated monitoring systems 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 adequate to address emerging financial crime risks.
Institutions must therefore ensure timely reporting of suspicious activities to regulators, including the Nigerian Financial Intelligence Unit.
The regulator also directed institutions to establish governance structures to monitor system performance, validate artificial intelligence models and ensure compliance with Nigeria’s data protection laws.
The CBN warned that institutions that fail to comply with the new standards or operate ineffective AML systems may face regulatory sanctions. Compliance will be monitored through off-site surveillance, on-site examinations and thematic regulatory reviews.
It added that financial institutions must maintain detailed audit trails and case-management systems to track investigations into suspicious transactions and financial crime alerts.
According to the apex bank, the new standards represent the minimum compliance threshold, with institutions expected to adopt stronger controls depending on their risk exposure, transaction volumes and operational complexity.
The move comes as Nigeria’s financial sector expands rapidly through digital payments, fintech services and mobile banking, prompting regulators to strengthen financial crime prevention and safeguard the integrity of the country’s financial system.
