CBN Orders Banks to Intensify Terror Financing Monitoring, Warns of Penalties
The Central Bank of Nigeria has directed all banks and other financial institutions to intensify monitoring for terrorism financing indicators, including structured transactions, rapid movement of funds, use of money service bureaus and informal channels, and transactions linked to high‑risk jurisdictions. Institutions must also conduct retrospective reviews of past and attempted dealings with individuals and entities designated under sanctions regimes and submit detailed reports, including nil returns where no matches are found. The CBN warned that false or misleading submissions would violate the Banks and Other Financial Institutions Act (BOFIA) 2020 and could trigger off‑site reviews, on‑site examinations and other supervisory actions. The directive applies nationwide and follows recent sanctions designations targeting individuals and entities linked to terror financing.
For anyone using banking services, this means tighter scrutiny of transactions that look unusual—such as rapid, structured moves or transfers through informal channels—and possible delays or additional verification steps. Banks may ask for more documentation or explanations for certain transfers, especially those involving high‑risk countries or money service businesses.
Will these heightened checks affect the speed or cost of your regular banking transactions, and are you prepared to provide extra documentation if your transfers trigger the new monitoring flags?