CBN Heightens Oversight on Terrorism Financing Risk

The Central Bank of Nigeria (CBN) has elevated terrorism financing supervision to a current supervisory priority as part of efforts to protect the Nigerian financial system from abuse by illicit actors.

CBN in a statement signed by its Acting Director, Corporate Communications  and Investor Relations Department, Hakama Sidi-Alli,  said the heightened oversight would focus on “terrorism financing risk management, terrorism financing transaction monitoring, targeted financial sanctions implementation, and terrorism financing related suspicious transaction reporting.”

The CBN said it would continue to apply a “risk based supervisory approach”, including on site and off site engagement, to support effective anti money laundering, counter financing of terrorism and counter proliferation financing (AML/CFT/CPF) controls across the financial sector.

According to the apex bank, the supervisory approach would be implemented “in line with existing legal and regulatory obligations.” The CBN said the 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.” It added that “further supervisory engagement will be undertaken as appropriate.”

The CBN said the initiative forms part of its ongoing commitment to safeguarding the financial system from illicit actors while supporting Nigeria’s domestic and international efforts to strengthen financial integrity.