Money Laundering: CBN Mandates Financial Institutions On Real-time Monitoring

The Central Bank of Nigeria (CBN) has In a bid to curb money laundering and terrorism financing in the country, the Central Bank of Nigeria (CBN) has mandated financial institutions to adopt real-time transaction monitoring and screening systems.

This directive is contained in newly issued baseline standards for automated Anti-Money Laundering/Combating the Financing of Terrorism and Countering Proliferation Financing (AML/CFT/CPF) solutions.

Under the new regime, banks and other financial institutions are required to deploy systems capable of detecting and flagging suspicious transactions as they occur, rather than after the fact.

According to the apex bank, “financial institutions shall implement automated systems that support real-time transaction monitoring to identify and report suspicious activities promptly.”

The CBN further emphasised that the systems must be robust enough to handle continuous screening of customers and transactions against applicable sanctions lists.

It stated, “the solution shall enable real-time or near real-time screening of customers, transactions and beneficial owners against relevant sanctions lists and watchlists.”

The apex bank noted that the new framework is designed to ensure proactive risk management, stressing that institutions must move beyond periodic checks to continuous monitoring.

“The system shall support continuous monitoring of transactions and customer behaviour to detect unusual patterns and potential financial crime risks,” the CBN said.

In addition, the guidelines require institutions to integrate their monitoring systems across multiple channels, including digital banking platforms, to ensure comprehensive oversight.

The bank added that “the solution shall provide end-to-end coverage across all products, services and delivery channels of the institution.”