The Central Bank of Nigeria (CBN) has announced the establishment of a dedicated Compiance Department as part of ongoing reforms to enhance regulatory effectiveness and streamline supervisory responsibilities.
According to a circular signed by Olubunmi Ayodele-Oni, the new department was created in the first quarter of 2025 with full operational responsibilities commencing in the second quarter.
The move was aimed at consolidating oversight functions, clarifying institutional roles, and ensuring focused supervision of non-prudential and emerging risks.
The Compliance Department will oversee four key areas including Financial Crime Supervision — covering Anti-Money Laundering (AML), Counter Financing of Terrorism (CFT), Counter-Proliferation Financing (CPF), and sanctions compliance.
It would also oversee Market Conduct Supervision — focused on disclosure practices, complaints management, and advertising standards.
It would oversee Enterprise Security Supervision — including cybersecurity, data protection, and third-party risk management.
And also, Corporate Governance and ESG Supervision — addressing board effectiveness as well as environmental, social, and governance oversight.
The CBN directed all regulated financial institutions to channel reports, correspondence, and inquiries related to these areas to the Director of the Compliance Department via established communication protocols.
Institutions will also receive additional guidance on points of contact and submission procedures directly from the department.
“The establishment of the Compliance Department is a strategic move to embed regulatory discipline and ensure robust oversight of non-prudential risks,” the circular stated.
The apex bank further reaffirmed its commitment to working with financial institutions to ensure a smooth transition and uphold the highest standards of compliance.
The announcement came against the backdrop of rising financial fraud in the country. In July, the CBN disclosed that fraud cases surged by 45 percent within a year, with 70 percent of losses traced to digital channels, particularly unregulated virtual asset platforms.
CBN Governor Olayemi Cardoso, represented by Deputy Governor for Economic Policy Muhammad Sani Abdullahi, revealed this at a public lecture organised by the Economic and Financial Crimes Commission (EFCC).
He noted that findings from the CBN’s 2024 Financial Stability Report showed a sharp increase in fraud, adding that while digital innovation has expanded financial inclusion, it has also created complex regulatory and security challenges.
