The Central Bank of Nigeria (CBN) has given Deposit Money Banks (DMBs) in the country 18 months to fully comply with its new baseline standards for automated anti-money laundering solutions, and gave other financial institutions (OFIs) 24 months from March 10, 2026, to comply with the regulatory requirements.
The apex bank confirmed the policy move in a circular titled “Issuance of Baseline Standards for Automated Anti-Money Laundering Solution for Financial Institutions in Nigeria” and dated March 10, 2026.
It partly stated: “The implementation of these guidelines shall start from the date of issuance, while full compliance shall be 18 months (for Deposit Money Banks) and 24 months (for Other Financial Institutions) from the date of issuance.”
The circular, which was signed by CBN’s Director of Banking Supervision Department, Akinwunmi Olubukola, and Olubunmi Ayodele-Oni for the Director, Compliance Department, was addressed to all DMBs, mobile money operators, international money transfer operators, OFIs, and payment service providers.
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Also, the apex bank directed all the financial institutions to submit implementation roadmaps to its Compliance Department within three months from the date of the issuance of the circular.
According to the CBN, the standards are issued to promote financial system stability and integrity, noting that the framework covers automated solutions for AML, combating the financing of terrorism, and countering proliferation financing in Nigeria.
It clarified: “The Baseline Standards provide a framework for implementing automated solutions that strengthen the detection and reporting of suspicious transactions in real time and enhance compliance with applicable AML/CFT/CPF laws and regulations, while also supporting the use of emerging technologies to improve overall financial crime risk management.”
The standards, which are based on the provisions of the CBN Act 2007, and the Banks and Other Financial Institutions Act 2020, and are meant to complement existing legal obligations, mandate all banks and financial institutions under the CBN’s purview to operate automated AML solutions, although the sophistication of each system will depend on the institution’s size, risk profile, business model, transaction volumes, and complexity.
The CBN maintained that manual controls were no longer sufficient as financial services become more digitised and complex and directed that the financial institutions must deploy systems that supported risk-based customer due diligence, enable timely detection of suspicious activities, and facilitate accurate and timely reporting to the CBN, the Nigerian Financial Intelligence Unit, and other authorities.
Based on the requirements, the standards align with Financial Action Task Force (FATF) recommendations, including system requirements, transaction monitoring, customer due diligence, know-your-customer and know-your-business processes, sanctions and politically exposed persons screening, reporting, case management, audit trails, data security, vendor management, fraud monitoring, unified customer risk views, and system integration and scalability.
The standards also required that high-risk sectors or subsectors must apply enhanced monitoring capabilities, ensuring AML systems integrate with KYC/KYB repositories and customer risk profiles. Institutions must support customer identification, risk assessment, sanctions screening, transaction monitoring, case management, reporting, audit, governance, and data protection.
This is even as the standards also encourage AI, machine learning, and advanced analytics with independent annual validation, accuracy checks, fairness audits, and bias testing.
The apex bank, through the standards, also required tamper-proof audit trails, role-based workflows, secure authentication, and compliance with the Nigeria Data Protection Act and that third-party and vendor management policies must cover procurement, implementation, support, incident handling, and exit strategies.
The CBN stipulated further that financial institutions seeking fresh authorization must demonstrate compliance or present credible plans to meet the standards, adding that such compliance will be monitored through off-site surveillance, on-site examinations, thematic reviews, and other supervisory
