By Kolawole Omotola Olaide Adoke
The Central Bank of Nigeria (CBN) has stepped up its monitoring of terrorism financing activities, placing greater supervisory attention on measures designed to prevent criminal networks and other illicit actors from abusing the country’s financial system.
The apex bank disclosed the development in a statement signed by its Acting Director of Corporate Communications and Investor Relations Department, Hakama Sidi-Ali.
The CBN explained that its strengthened supervision would focus on how financial institutions identify and manage terrorism-financing risks. Particular attention will be given to transaction monitoring, the enforcement of targeted financial sanctions and the reporting of suspicious transactions associated with terrorism financing.
According to the bank, the enhanced oversight forms part of its broader efforts to improve the effectiveness of anti-money laundering and counter-financing of terrorism controls within Nigeria’s financial sector.
The CBN said it would continue to adopt a risk-based approach to supervision, combining on-site inspections with off-site monitoring to assess the ability of regulated institutions to comply with relevant anti-money laundering, counter-financing of terrorism and counter-proliferation financing requirements.
The apex bank stressed that the supervisory measures would be carried out in line with existing laws and regulatory provisions governing Nigeria’s financial system.
It further noted that the initiative would strengthen Nigeria’s participation in domestic and international efforts aimed at combating terrorism financing and counter-proliferation financing.
The CBN maintained that protecting the financial system from illicit financial flows remains essential to preserving financial stability and integrity.
“Further supervisory engagement will be undertaken as appropriate,” the bank stated.
The latest move highlights the CBN’s continued commitment to ensuring that financial institutions maintain effective safeguards against the misuse of banking and payment channels for activities that could threaten national security or undermine the integrity of Nigeria’s financial system.
