CBN Mandates Automated AML Standards for Nigeria's Financial Institutions by 2028
The Central Bank of Nigeria has mandated that all regulated financial institutions implement automated Anti-Money Laundering systems by March 2028. This regulation establishes strict timelines and core functional requirements, emphasizing the necessity for technology-driven compliance in response to evolving financial crime risks.
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On March 10, 2026, the Central Bank of Nigeria (CBN) issued a circular requiring all regulated financial institutions to adopt automated Anti-Money Laundering (AML) systems. Compliance is structured in three phases: a roadmap is due by June 10, 2026, full compliance for Deposit Money Banks by September 10, 2027, and for Other Financial Institutions by March 10, 2028.
The CBN's regulation specifies five core functions for AML systems, including real-time transaction monitoring and enhanced Know-Your-Customer due diligence. The directive aims to modernize Nigeria's financial compliance framework and address the rapid growth of digital financial services, which reached over ₦600 trillion in electronic transactions in 2024.
Institutions that fail to adapt risk regulatory non-compliance and loss of competitive edge. The focus on automation highlights a shift from manual processes to technology-driven solutions to combat financial crime effectively.
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