ABUJA: The Central Bank of Nigeria (CBN) has intensified its supervisory focus on terrorism financing, placing the issue among its current priorities as it moves to prevent illicit actors from exploiting the country’s financial system.
The apex bank disclosed this in a statement signed by the Acting Director of its Corporate Communications and Investor Relations Department, Hakama Sidi-Ali.
The CBN said the heightened supervisory attention would focus on how financial institutions identify, assess and manage terrorism financing risks.
It said particular attention would also be given to transaction monitoring, the implementation of targeted financial sanctions and the reporting of suspicious transactions suspected to be linked to terrorism financing.
According to the apex bank, it will continue to apply a risk-based supervisory approach to strengthen anti-money laundering, counter-financing of terrorism and counter-proliferation financing (AML/CFT/CPF) controls across the financial sector.
The approach will involve both on-site and off-site supervisory engagements with financial institutions and other relevant entities.
The CBN explained that all measures would be implemented in line with existing legal and regulatory requirements governing the Nigerian financial system.
The apex bank said the initiative was also designed to support Nigeria’s domestic and international cooperation in combating terrorism financing and counter-proliferation financing.
It added that strengthening controls against illicit financial activities remains critical to protecting the integrity and stability of the financial system.
Further supervisory engagement will be undertaken as appropriate,” the CBN said.
The latest move underscores the regulator’s continued efforts to strengthen the ability of financial institutions to detect and prevent the movement of funds linked to terrorism and other illicit activities.
Through enhanced monitoring and risk-based supervision, the apex bank is seeking to ensure that banks and other regulated financial institutions maintain effective systems for identifying suspicious transactions and complying with financial sanctions.
The CBN said the initiative reflects its broader commitment to safeguarding Nigeria’s financial system from illicit activities while supporting efforts to improve financial integrity at both the domestic and international levels.
The intensified supervision comes as financial regulators globally continue to place greater emphasis on identifying financial networks that may facilitate terrorism, proliferation and other forms of organised illicit activity.
