Abuja, Nigeria
The Central Bank of Nigeria (CBN) has established a new Compliance Department to enhance oversight of non-prudential risks within the country’s financial sector.
In a circular issued to regulated financial institutions on Thursday, the apex bank stated that the department was created in the first quarter (Q1) of 2025 and became fully operational in the second quarter (Q2).
“This structural reform forms part of the Bank’s broader efforts to consolidate and embed regulatory effectiveness within existing supervisory frameworks, clarify institutional responsibilities, and maintain focused oversight of non-prudential and emerging risks,” CBN said.
The CBN circular revealed that the compliance department has taken over responsibilities in four key areas.
“Financial crime supervision, covering anti-money laundering (AML), counter-terrorism financing (CFT), counter-proliferation financing (CPF), and sanctions compliance,” CBN said.
“Market conduct supervision, including disclosure practices, complaints management, and advertising standards;
“Enterprise security supervision covering cybersecurity, data protection, and third-party risk management; and corporate governance and ESG supervision focusing on board effectiveness and oversight of environmental, social and governance (ESG) oversight.”
The apex bank also directed that all regulatory reports, correspondence, and related inquiries on these matters be addressed to the director of the compliance department via the existing communication channels.
It noted that institutions will be provided with specific guidance on points of contact and submission procedures.
The CBN expressed its expectation for continued cooperation from all institutions to ensure a smooth transition and maintain the highest standards of compliance with relevant regulatory requirements.
