CBN Fines 29 Banks ₦15 Billion Over Anti-Money Laundering and Terrorism Financing Breaches

The Central Bank of Nigeria (CBN) has imposed fines totaling ₦15 billion on 29 financial institutions for breaching Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations. This revelation was made by the CBN Governor, Olayemi Cardoso, during the 2024 Bankers’ Night hosted by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.

Governor Cardoso underscored the seriousness of these violations, urging the penalised banks to address the systemic deficiencies that facilitated the lapses. He emphasised that rectifying these issues is essential for reinforcing regulatory compliance and fostering trust in Nigeria’s financial system.

Tackling Systemic Lapses in Banking

Cardoso highlighted that, in addition to the monetary penalties, the affected banks are required to investigate and resolve the root causes of their non-compliance. He stressed that this proactive approach would help mitigate recurring challenges within the sector.

“The penalties are only part of the solution. Addressing systemic lapses is crucial for improving regulatory adherence and ensuring a stable financial ecosystem,” Cardoso stated.

Compliance as a Pillar of Trust

The CBN governor also emphasised the broader implications of compliance on the financial sector. He noted that banks committed to regulatory standards play a vital role in fostering national growth, innovation, and stability.

“A compliant institution does more than protect itself; it strengthens the entire financial system, ensuring resources are directed toward prosperity rather than enabling crime and corruption,” he added.

Cardoso warned that non-compliance undermines the sector’s foundation, with money laundering, fraud, and corruption eroding trust and perpetuating criminal activities. He urged banks to adopt a culture of zero tolerance for breaches, prioritising compliance as a strategic goal.

Proactive Measures to Enhance Compliance

The governor called on banking executives and boards to lead by example, advocating for the implementation of proactive measures to identify and address vulnerabilities. He encouraged financial institutions to:

Conduct enhanced due diligence for high-risk clients and politically exposed persons.
Educate staff to recognise and report potential red flags.
Collaborate with regulators and law enforcement to combat systemic risks.
Cardoso also highlighted the importance of safeguarding whistleblowers who report unethical practices and enhancing cybersecurity measures to address emerging threats.

A Vision for Global Standards

Reflecting on the future, the CBN governor expressed optimism about Nigeria’s financial industry meeting and surpassing international benchmarks. He emphasised that robust compliance frameworks are central to building trust and integrity in the system.

“Compliance is not just a regulatory obligation; it is fundamental to fostering confidence and ensuring the growth of the financial sector,” Cardoso concluded.

The fines mark a decisive step by the CBN to reinforce regulatory oversight and promote ethical banking practices in Nigeria’s financial landscape.