CBN boosts terrorism financing supervision, focuses on monitoring and sanctions
CBN said on Tuesday that it has made terrorism‑financing supervision a top priority to shield Nigeria’s financial system from illicit actors. The directive, signed by Acting Director of Corporate Communications Sidi‑Ali Hakama, covers terrorism‑financing risk management, transaction monitoring, implementation of targeted financial sanctions, and reporting of suspicious transactions linked to terror financing. The bank added it will keep using a risk‑based supervisory approach, with on‑site and off‑site examinations, to strengthen anti‑money laundering, counter‑terrorism financing and counter‑proliferation financing controls across the sector, and will pursue domestic and international cooperation on these issues.
The move comes after the CBN froze accounts of six individuals and four Bureau de Change operators in June following an update to the Nigeria Sanctions List, and after it amended the BVN watch‑list framework in March to limit enrolment to adults and restrict database access. By tightening supervision, the CBN aims to prevent illicit funds from entering the banking system, which could otherwise facilitate terrorism financing and erode confidence in Nigerian banks. For financial institutions, the focus means more rigorous checks on customer transactions, stricter sanctions compliance, and possible penalties for lapses.
For the average Nigerian, the immediate impact is limited, but the stricter oversight could lead to quicker freezing of accounts tied to suspected terrorists and fewer opportunities for illicit money to circulate. Banks and other financial service providers should ensure their AML/CTF programs are up to date, monitor transactions for red flags, and be ready for increased CBN on‑site visits. Staying informed about CBN directives helps individuals understand why certain transactions may be delayed or blocked.