The Central Bank of Nigeria (CBN) has extended the deadline for banks to comply with the new baseline standards for automated anti-money laundering systems aimed at strengthening the country’s fight against financial crimes.
In a circular dated March 10, 2026, the apex bank said banks would have 18 months to achieve full compliance, while other financial institutions would be given 24 months from the date of issuance.
The document, titled: “Issuance of baseline standards for automated anti-money laundering solution for financial institutions in Nigeria,” was signed by the Director of Banking Supervision, Akinwunmi Olubukola, and Olubunmi Ayodele-Oni for the Director of the Compliance Department.
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The directive was addressed to banks, mobile money operators, international money transfer operators, payment service providers, and other financial institutions operating under the CBN’s regulatory oversight.
As part of the implementation process, the CBN instructed all affected institutions to submit detailed implementation roadmaps to its compliance department within three months of the circular’s issuance.
The regulator said the new standards are designed to strengthen the integrity and stability of Nigeria’s financial system by improving mechanisms for detecting suspicious financial transactions.
According to the CBN, the framework covers automated solutions for anti-money laundering, combating the financing of terrorism, and countering 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 bank stated.
The apex bank emphasised that manual monitoring systems are no longer sufficient in a rapidly digitising financial sector.
Financial institutions are therefore required to deploy automated systems capable of performing risk-based customer due diligence, transaction monitoring, and timely reporting to regulators.
Reports of suspicious transactions must be shared with relevant authorities, including the Nigerian Financial Intelligence Unit (NFIU).
The new standards align with recommendations from the Financial Action Task Force and outline requirements for transaction monitoring, know-your-customer procedures, sanctions screening, politically exposed persons checks, reporting protocols, audit trails, and data protection.
The CBN also encouraged institutions to adopt artificial intelligence, machine learning and advanced analytics to strengthen fraud detection and risk management systems.
However, such technologies must undergo independent annual validation, including accuracy assessments, fairness audits and bias testing.
Financial institutions are further required to implement tamper-proof audit trails, role-based workflows, secure authentication systems, and ensure compliance with the Nigeria Data Protection Act.
In addition, the regulator said third-party vendor management policies must clearly cover procurement, implementation, technical support, incident management, and exit strategies.
Institutions seeking new licences must also demonstrate compliance with the standards or present credible plans to meet them.
The CBN added that compliance will be monitored through off-site surveillance, on-site examinations, thematic reviews, and other supervisory mechanisms.
