The CBN adjusted anti-money laundering compliance rules for banks and others

The Central Bank of Nigeria (CBN) has announced new basic standards for automated anti-money laundering solutions for deposit banks and other financial institutions.

Deposit Money Banks now have 18 months to fully comply, while other financial institutions have 24 months starting March 10, 2026, to meet the requirements.

The new directive was announced in a circular dated March 10, 2026 and signed by the Director of the CBN Banking Supervision Department, Akinwunmi Olubukola, and Olubunmi Ayodele-Oni for Director of the Compliance Department.

According to the apex bank, “Implementation of these guidelines will commence from the date of issue, whereas full compliance will be 18 months (for Deposit Money Banks) and 24 months (for Other Financial Institutions) from the date of issue.”

This is an extension of the previously reported 12 months, when the apex bank first proposed the guidelines.

The circular, titled ‘Issuance of Basic Standards for Automated Anti-Money Laundering Solutions for Financial Institutions in Nigeria’, is addressed to all banks, mobile money operators, international money transfer operators, other financial institutions and payment service providers.

The CBN also directed institutions to submit implementation roadmaps to the Compliance Department within three months from the date of publication, thereby tightening the transition timetable for the new compliance regime.

The regulator said the standards were issued to enhance the stability and integrity of the financial system, and noted that the framework includes automated solutions for AML, combating the financing of terrorism, and countering the proliferation of financing in Nigeria.

READ ALSO: EFCC arrests 15 people for selling solid minerals in Kaduna

“The Baseline Standard provides a framework for implementing automated solutions that strengthen real-time detection and reporting of suspicious transactions and improve compliance with applicable AML/CFT/CPF laws and regulations, while supporting the use of new technologies to improve overall financial crime risk management,” the bank said.

All banks and financial institutions under the CBN’s purview must operate automated AML solutions, although the sophistication of each system will depend on the institution’s size, risk profile, business model, transaction volume and complexity. These standards are based on the CBN Law of 2007 and the Banks and Other Financial Institutions Law of 2020, and are intended to complement, not replace, existing legal obligations.

The CBN emphasized that manual controls are no longer sufficient as financial services become more digital and complex. Institutions should implement systems that support risk-based customer due diligence, enable timely detection of suspicious activity, and facilitate accurate and timely reporting to the CBN, the Nigerian Financial Intelligence Unit and other authorities.

These standards align with Financial Action Task Force recommendations and cover system requirements, transaction monitoring, customer due diligence, know your customer and know your business processes, sanctions and screening of politically exposed individuals, reporting, case management, audit trails, data security, vendor management, fraud monitoring, unified customer risk view, and system integration and scalability.

High-risk sectors or subsectors should implement enhanced monitoring capabilities, ensuring AML systems are integrated with KYC/KYB repositories and customer risk profiles. Institutions must support customer identification, risk assessment, sanctions screening, transaction monitoring, case management, reporting, auditing, governance, and data protection.

The standard also encourages AI, machine learning, and advanced analytics with independent annual validation, accuracy checks, fairness audits, and bias testing.

CBN requires tamper-proof audit trails, role-based workflows, secure authentication, and compliance with the Nigerian Data Protection Act. Third-party and vendor management policies should cover procurement, implementation, support, incident handling, and exit strategy.

Institutions seeking new permits must demonstrate compliance or present a credible plan to meet the standards. Compliance will be monitored through off-site inspections, on-site inspections, thematic reviews and other oversight mechanisms.

The World Bank warns that failure to meet standards may result in remedial directives, administrative sanctions, and penalties under existing laws, impacting the institutions and individuals responsible.