Strengthening Trust: CBN Enhances Regulatory Standards in Banking

The Central Bank of Nigeria (CBN) has strengthened risk management and regulatory compliance throughout Nigerian financial institutions, reaffirming its dedication to upholding a transparent and robust financial system.

Speaking at a high-level Mandatory Compliance and Anti-Money Laundering (AML) training workshop in Lagos organized in partnership with Citi, Ms. Shola Phillips, Special Adviser to the CBN Governor on Compliance, emphasized the importance of rigorous adherence to international banking standards in order to maintain trust in Nigeria’s financial industry.

Financial institutions are expected by regulators to keep up dynamic, risk-based AML/CFT programs that adapt to the changing financial landscape. To effectively meet these expectations, institutions must integrate innovative compliance solutions and engage in proactive regulatory developments, according to Phillips.

Attendees included correspondent banking teams, compliance officers, and trade operations specialists from a range of financial institutions. The training offered valuable insights into emerging financial risks, global regulatory trends, and strategies for maintaining correspondent banking relationships.

Strong governance frameworks are essential for risk mitigation, according to Siobhan Ni Ealaithe, Managing Director of Citi’s Correspondent Banking Group. In order to stop illegal financial activity, she emphasized the importance of Know Your Customer (KYC), Know Your Business (KYB), and Know Your Transaction (KYT) procedures.

In her bleak assessment of the risks associated with financial crime, Stephanie Bailey, Head of EMEA AML Risk Management for Foreign Correspondent Banking, pointed out that more than $3 trillion in illicit funds pass through the global financial system every year. Financial institutions should use technology-driven risk assessments, improve due diligence procedures, and maintain transparency in all transactions, she urged.

The goal of CBN Governor Olayemi Cardoso is to strengthen Nigeria’s financial system and maintain regulatory excellence, and the workshop supports this goal. A robust financial system is based on trust, which is gained via honesty and obedience, as Governor Cardoso has repeatedly emphasized. The CBN will keep enforcing strict regulations to safeguard Nigeria’s financial system and guarantee that it complies with international best practices.

In order to protect Nigeria’s financial sector and guarantee its resilience and credibility both domestically and internationally, the CBN works to strengthen risk management frameworks and cultivate a strong culture of compliance.