The Central Bank of Nigeria (CBN) has strengthened terrorism financing supervision of banks and financial institutions as part of efforts to protect the country’s financial system from the activities of illicit actors.
In a statement released on Tuesday and signed by the Acting Director, Corporate Communications, Mrs Hakama Sidi-Ali, the apex bank said that the move also supports the country’s ongoing domestic and international cooperation on counter-terrorism financing, counter-proliferation financing, financial integrity, and the protection of the financial system.
The statement reads: “The Central Bank of Nigeria (CBN) has elevated terrorism financing supervision to a current supervisory priority, as part of its ongoing commitment to protecting the Nigerian financial system from abuse by illicit actors.
“This supervisory priority covers, at a high level, terrorism financing risk management, terrorism financing transaction monitoring, targeted financial sanctions implementation, and terrorism financing-related suspicious transaction reporting.
“The Bank will continue to apply a risk-based supervisory approach, including on-site and off-site engagement, to support effective Anti‑Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing (AML/CFT/CPF) controls across the financial sector in line with existing legal and regulatory obligations.
“This supervisory focus also supports Nigeria’s ongoing domestic and international cooperation on counter-terrorism financing, counter-proliferation financing, financial integrity, and the protection of the financial system.
“Further supervisory engagement will be undertaken as appropriate.”
New Telegraph reports that in October last year, global watchdog, the Financial Action Task Force (FATF), announced Nigeria’s removal from its grey list, thus ending nearly three years of the country being tagged a destination for dirty money and signalling a boost for investor confidence in the nation’s economy.
Nigeria was removed from the list alongside South Africa, Burkina Faso, and Mozambique after their governments intensified efforts to combat money laundering and terrorist financing.
South Africa and Nigeria were added to the grey list in February 2023, while Mozambique was added in October 2022, and Burkina Faso was originally designated in February 2021.
