The Central Bank of Nigeria (CBN) has reaffirmed its commitment to strengthening the country’s financial system by enhancing regulatory compliance and risk management across financial institutions. This move aligns with its broader strategy to ensure transparency, security, and resilience in Nigeria’s banking sector.
Speaking at a high-level Mandatory Compliance and Anti-Money Laundering (AML) training workshop, organized in collaboration with Citi in Lagos, Ms. Shola Phillips, Special Adviser to the CBN Governor on Compliance, stressed the importance of aligning with global banking standards to sustain trust and confidence in the financial system.
“Regulators expect financial institutions to maintain dynamic, risk-based AML/CFT programmes that are responsive to the evolving financial environment. Proactive engagement with regulatory developments and the integration of innovative compliance solutions are essential for institutions to meet these expectations effectively,” Phillips stated.
The workshop brought together compliance officers, trade operations specialists, and correspondent banking teams from various financial institutions. Discussions centered on global regulatory trends, emerging financial risks, and best practices for maintaining correspondent banking relationships.
Enhancing Financial System Integrity
Siobhan Ni Ealaithe, Managing Director of Citi’s Correspondent Banking Group, underscored the importance of robust governance frameworks in mitigating financial risks. She highlighted the critical roles of Know Your Customer (KYC), Know Your Business (KYB), and Know Your Transaction (KYT) protocols in preventing illicit financial activities.
Stephanie Bailey, Head of EMEA AML Risk Management for Foreign Correspondent Banking, provided a stark assessment of financial crime risks, revealing that over $3 trillion in illicit funds circulate within the global financial system annually. She urged financial institutions to strengthen due diligence measures, leverage technology-driven risk assessments, and uphold transparency in all transactions.
Aligning with CBN’s Vision
The initiative aligns with CBN Governor Olayemi Cardoso’s vision to uphold regulatory excellence and reinforce Nigeria’s financial system against emerging threats.
“A strong financial system is built on trust, and trust is earned through integrity and compliance. The CBN will continue to set high regulatory standards to protect Nigeria’s financial ecosystem and ensure its alignment with global best practices,” Cardoso has consistently emphasized.
By fostering a culture of compliance and reinforcing risk management frameworks, the CBN aims to safeguard Nigeria’s financial sector, ensuring its resilience, credibility, and global competitiveness.
