CBN makes terrorism financing a top supervisory priority

The Central Bank of Nigeria, CBN, has designated terrorism financing supervision as a current priority in its efforts to prevent the country’s financial system from being exploited by illicit actors.

The apex bank disclosed this in a statement issued on Tuesday by its Acting Director, Corporate Communications and Investor Relations Department, Sidi-Ali Hakama.

The CBN said its heightened supervisory attention would cover how financial institutions manage terrorism financing risks, monitor transactions and comply with targeted financial sanctions.

It will also focus on the reporting of suspicious transactions linked to terrorism financing.

According to the bank, supervision will continue to be conducted through both on-site and off-site engagements, using a risk-based approach to assess compliance with anti-money laundering, countering the financing of terrorism and counter-proliferation financing requirements.

“The Bank will continue to apply a risk-based supervisory approach, including on-site and off-site engagement, to support effective AML/CFT/CPF controls across the financial sector in line with existing legal and regulatory obligations,” the statement said.

The CBN said the enhanced focus was also intended to strengthen Nigeria’s domestic and international efforts on counter-terrorism financing and counter-proliferation financing, while safeguarding the integrity of the financial system.

It added that further supervisory engagements would be carried out where necessary.

The latest move follows a June 25 directive by the CBN ordering banks and other financial institutions to freeze the accounts of customers identified as being involved in terrorism financing.

The apex bank said the broader supervisory measures were part of efforts to ensure that financial institutions maintain effective controls against the use of the banking system for illicit purposes.