In a 4th September circular, the Central Bank of Nigeria (CBN) announced the establishment of a new Compliance Department. The circular was addressed to banks, payment service platforms, and other regulated entities.
New Compliance Department to Oversee AML Compliance and Other Areas
The CBN revealed that the new Compliance Department was established in Q1 2025, and its operations began in Q2. The regulator added that it had reassigned oversight for non-prudential risks to this department.
This includes:
- Financial Crime Supervision: anti-money laundering, counter-financing of terrorism, counter-proliferation financing, and sanctions compliance.
- Market Conduct Supervision: disclosure practices, complaints management frameworks, and advertising standards.
- Enterprise Security Supervision: cybersecurity, data protection, and third-party risk management.
- Corporate Governance and ESG Supervision: board effectiveness and oversight of environmental, social, and governance considerations.
Consequently, CBN announced that,
“Henceforth, all regulatory reports, correspondence, and related inquiries concerning these matters should be directed to the Director, Compliance Department through the established communication channels.”
Why This Matters…
This development marks an important shift in regulatory oversight by centralizing compliance functions under a newly established Compliance Department. All regulated entities will now route compliance-related reports, correspondence, and inquiries to this department.
This significantly changes how the CBN oversees certain risks in the financial world—risks that aren’t just about keeping money safe, but about preventing crimes and ensuring fair business practices.
Before, these responsibilities were spread out across different teams. Now, they’re being brought together into four main categories:
- fighting financial crimes
- ensuring good market behavior
- protecting businesses from security threats
- promoting strong company leadership and ethical standards (focusing on effective boards and environmental, social, and governance issues).
Banks and financial tech companies will need to update their internal processes to fit these changes. The CBN has promised to provide helpful advice on who to contact and how to submit reports in this new regulation regime.
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