The Central Financial institution of Nigeria (CBN) has mentioned penalties totaling N15 billion have been imposed on 29 banks for violations of Anti-Cash Laundering (AML) and Counter-Terrorism Financing (CTF) laws.
This was disclosed by Olayemi Cardoso, CBN governor, throughout the 2024 Bankers’ Night time organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.
In his remarks, Cardoso harassed the gravity of those violations and harassed the necessity for the affected banks to deal with the systemic weaknesses that allowed such lapses to happen.
“Along with these penalties, the banks are required to deal with the foundation causes of the lapses, which is essential for enhancing regulatory effectiveness. Traditionally, the {industry} has struggled with recurring points, however we’re assured that this method will assist change that narrative,” Cardoso acknowledged.
The Broader Implications of Compliance
The CBN governor highlighted the broader influence of compliance on the monetary ecosystem, noting that establishments that prioritise regulatory adherence contribute to nationwide progress and stability.
“A financial institution that prioritises compliance does greater than shield itself -it strengthens your entire monetary ecosystem. It directs monetary assets towards progress, innovation, and prosperity somewhat than crime and corruption. Collectively, we should exceed requirements, demonstrating to the general public and the world that we’re stewards of integrity and belief,” he added.
Cardoso additionally identified that the implications of non-compliance prolong past regulatory penalties. In line with him, points similar to cash laundering, fraud, and corruption undermine the muse of the monetary system. “The price of inaction is profound—fraud undermines confidence, corruption erodes belief, and cash laundering perpetuates organized crime,” he remarked.
A Imaginative and prescient for a Tradition of Compliance
The governor articulated a imaginative and prescient for a sturdy compliance tradition throughout Nigeria’s banking {industry}. He emphasised that monetary establishments should not solely adjust to regulatory requirements but additionally undertake a proactive method to figuring out and mitigating dangers.
Cardoso defined that executives and boards should lead by instance by making compliance a strategic precedence and championing zero tolerance for breaches—not simply in coverage however in apply. He urged monetary establishments to anticipate vulnerabilities and deal with dangers in high-risk areas proactively.
He additionally known as for the training of workers to recognise pink flags and report considerations about fraud, cash laundering, or unethical habits, guaranteeing they’re protected once they achieve this.
Moreover, he harassed the significance of conducting enhanced due diligence for high-risk purchasers, politically uncovered individuals, and distributors to stop illicit funds from flowing by monetary establishments.
The governor emphasised the necessity for industry-wide collaboration to fight systemic threats. This consists of sharing intelligence on rising dangers, cooperating with regulation enforcement businesses, and sustaining open communication with regulators.
Challenges Going through the Sector
Cardoso acknowledged the challenges going through the sector, from cybersecurity threats to disparities in monetary inclusion. Nevertheless, he expressed optimism that with strengthened compliance frameworks, the Nigerian banking {industry} may deal with these challenges successfully.
Reflecting on the broader implications, he mentioned, “Compliance isn’t just a regulatory requirement; it’s central to our mission of fostering belief and integrity inside the monetary system. Collectively, we are able to construct an {industry} that not solely meets however exceeds international requirements.”