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The Central Bank of Nigeria (CBN) has intensified its supervisory focus on terrorism financing risks across the financial sector as part of efforts to prevent the system from being exploited by illicit actors.
The apex bank disclosed this in a press statement issued on Tuesday and signed by its Acting Director of Corporate Communications and Investor Relations, Hakama Sidi-Ali.
According to the statement, the CBN has elevated terrorism financing supervision to a current supervisory priority.
What the statement says
“The Central Bank of Nigeria (CBN) has elevated terrorism financing supervision to a current supervisory priority, as part of its ongoing commitment to protecting the Nigerian financial system from abuse by illicit actors,” the statement said.
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The CBN said its supervisory priority would cover four key areas, including terrorism financing risk management and transaction monitoring.
Other areas are the implementation of targeted financial sanctions and suspicious transaction reporting related to terrorism financing.
The announcement indicates that these areas will receive increased attention from the regulator as it supervises financial institutions under existing legal and regulatory requirements.
Risk-based supervision to continue
The CBN said it would continue to use a risk-based supervisory approach, combining on-site and off-site engagements.
- “The Bank will continue to apply a risk-based supervisory approach, including on-site and off-site engagement, to support effective AML/CFT/CPF controls across the financial sector in line with existing legal and regulatory obligations,” the statement said.
AML/CFT/CPF refers to anti-money laundering, countering the financing of terrorism and counter-proliferation financing.
The CBN also said the heightened focus supports Nigeria’s domestic and international cooperation on counter-terrorism financing, counter-proliferation financing, financial integrity and protection of the financial system.
It added that further supervisory engagement would be undertaken where appropriate.
What you should know
The Central Bank of Nigeria (CBN) recently directed banks, payment service banks, and other financial institutions to immediately freeze all accounts, assets, and transactions linked to six individuals and four Bureau De Change (BDC) operators designated for terrorism financing.
- The directive was contained in a circular dated June 24, 2026 (Ref: CMD/FCS/PUB/CIR/002/011), obtained by Nairametrics.
- According to the apex bank, the latest update to the Nigeria Sanctions List, effective June 18, 2026, is binding on all regulated institutions and requires immediate implementation.
- In the circular, the CBN informed regulated entities of fresh sanctions issued by the Nigeria Sanctions Committee (NIGSAC) and the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) under Executive Order 13224, as amended.
Earlier in the year, the CBN introduced stricter controls on suspected fraudulent transactions, BVN enrolment, and data access within the banking system.
This was according to CBN’s circular dated March 12, 2026, titled “Addendum to the Revised Regulatory Framework for Bank Verification Number (BVN) Operations and Watch-List for the Nigerian Banking Industry 2021.”
According to the apex bank, the amendments are aimed at strengthening fraud monitoring, improving identity management within the financial system, and safeguarding the integrity of banking transactions.
