The Central Bank of Nigeria (CBN) has extended the timeline for financial institutions to comply with its newly introduced baseline standards for automated anti-money laundering (AML) solutions.
In a circular dated March 10, 2026, the apex bank said Deposit Money Banks have 18 months to achieve full compliance, while other financial institutions have up to 24 months from the date of issuance to meet the requirements.
The circular, titled Issuance of Baseline Standards for Automated Anti-Money Laundering Solution for Financial Institutions in Nigeria, was signed by the CBN’s Director of Banking Supervision, Akinwunmi Olubukola, and Olubunmi Ayodele-Oni for the Director of the Compliance Department. It was addressed to banks, mobile money operators, international money transfer operators, payment service providers and other financial institutions.
Under the directive, institutions must submit their implementation roadmaps to the CBN Compliance Department within three months, outlining how they will adopt the automated AML systems.
The regulator said the standards aim to strengthen Nigeria’s financial system by improving the detection and reporting of suspicious transactions and enhancing compliance with regulations on anti-money laundering, counter-terrorism financing and counter-proliferation financing.
According to the CBN, the framework requires financial institutions to deploy automated systems capable of supporting risk-based customer due diligence, monitoring transactions in real time and facilitating accurate reporting to regulators, including the Nigerian Financial Intelligence Unit.
The guidelines align with recommendations from the Financial Action Task Force and include requirements for transaction monitoring, know-your-customer (KYC) and know-your-business (KYB) processes, sanctions screening, reporting systems, case management, and audit trails.
The CBN also encouraged the use of emerging technologies such as artificial intelligence, machine learning and advanced analytics to improve financial crime risk management, provided such tools undergo annual independent validation and fairness audits.
The apex bank stressed that manual controls are no longer sufficient in an increasingly digitised financial system and warned that failure to comply with the standards could attract regulatory sanctions and penalties under existing laws.
Compliance will be monitored through off-site surveillance, on-site examinations and other supervisory mechanisms as the regulator seeks to strengthen oversight of financial institutions across the country.
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