CBN Unveils Compliance Department For Anti-money Laundering, Cybersecurity

The Central Bank of Nigeria (CBN) has announced the establishment of a new compliance department to strengthen oversight of non-prudential risks in the country’s financial sector.

In a circular to regulated financial institutions on Thursday, the apex bank said the department was created in the first quarter (Q1) of 2025 and became operational in the second quarter (Q2).

“This structural reform forms part of the Bank’s broader efforts to consolidate and embed regulatory effectiveness within existing supervisory frameworks, clarify institutional responsibilities, and maintain focused oversight of non-prudential and emerging risks,” CBN said.

With its creation, the apex bank said the compliance department has taken over responsibilities in four key areas.

“Financial crime supervision, covering anti-money laundering (AML), counter-terrorism financing (CFT), counter-proliferation financing (CPF), and sanctions compliance,” CBN said.“Market conduct supervision, including disclosure practices, complaints management, and advertising standards;

“Enterprise security supervision covering cybersecurity, data protection, and third-party risk management; and corporate governance and ESG supervision focusing on board effectiveness and oversight of environmental, social and governance (ESG) oversight.”

The financial regulator further said all regulatory reports, correspondence, and related inquiries concerning the matters should be directed to the director, compliance department, through the established communication channels.

The apex bank added that institutions will receive direct guidance on specific points of contact and submission procedures.

CBN said it looks forward to continued cooperation from all institutions to ensure a smooth transition and to uphold the highest standards of compliance with applicable regulatory requirements.