CBN Orders Banks To Activate Real-time Alerts For High-Risk Transactions
All financial institutions operating in the country have been directed by the Central Bank of Nigeria (CBN) to implement real-time alerts for transactions considered to be high-risk in compliance with the enhanced Anti-Money Laundering (AML) system designed to safeguard the integrity and stability of the nation’s financial system.
In a circulated dated Tuesday, May 20, 2025, signed by the Director of Banking Supervision,
Olubukola Akinwunmi, the apex bank noted that the real-time alerts should for cross-border transactions, excessive cash deposits, cryptocurrency-related dealings, and other activities flagged under existing AML regulations.
The notice titled Exposure of Draft Baseline Standards for Automated Anti-Money Laundering (AML) Solutions – Request for Comments, outlined the regulatory expectations for modern AML compliance.
It was stated that the draft standards are designed to promote operational efficiency and ensure compliance with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Financing (AML/CFT/CPF) regulations.
The aim is to strengthen the AML capabilities of financial institutions through advanced, technology-driven solutions; encouraging the adoption of emerging technologies for real-time detection and reporting of suspicious transactions; reducing the inefficiencies associated with manual compliance processes; and ensuring alignment with evolving regulatory expectations both locally and internationally.
“This standard is informed by a comprehensive assessment of existing solutions within the industry and aligns with global best practices, including recommendations by the Financial Action Task Force (FATF),” the banking sector regulator said.
It made it mandatory for financial institutions implement transaction monitoring systems capable of supporting multiple risk scenarios.
These systems should use configurable filtration rules and customer segmentation techniques to effectively detect suspicious behavior. Institutions are also required to conduct regular stress testing and system validation exercises to minimise false positives.
In addition, there must be real-time access to Customer Due Diligence (CDD), Know Your Customer (KYC), and Know Your Customer’s Business (KYB) data, with banks required to automate customer onboarding processes with real-time identification and verification in line with existing AML/CFT/CPF regulations.
This includes integration with Bank Verification Number (BVN) and National Identification Number (NIN) databases to ensure instant verification, a part of the draft, available for download on the official website of the CBN, stated.
All stakeholders have been encouraged to review and provide feedback to shape the final version of the standards, the circular with reference number BSD/DIR/CON/AML/018/033 disclosed.
Related posts
