CBN tightens watch on terrorism financing risks

THE Central Bank of Nigeria (CBN) has stepped up its supervision of terrorism financing risks across the country’s financial system, making the issue a current priority in its regulatory oversight.

The apex bank said the move was aimed at preventing illicit actors from exploiting financial institutions to move or conceal funds linked to terrorism.

In a statement signed by Acting Director, Corporate Communications and Investor Relations Department, Hakama Sidi-Ali said the CBN’s enhanced supervisory focus would cover key areas of terrorism financing risk management and financial monitoring.

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These include monitoring transactions for potential terrorism financing, enforcing targeted financial sanctions and ensuring that suspicious transactions linked to terrorism financing are properly reported.

The CBN said it would continue to deploy a risk-based supervisory approach, combining on-site examinations with off-site monitoring to assess the effectiveness of anti-money laundering and counter-terrorist financing controls across the financial sector.

The measures form part of the regulator’s broader efforts to ensure that banks and other financial institutions comply with existing anti-money laundering, counter-terrorist financing and counter-proliferation financing obligations.

According to the CBN, the enhanced supervision also supports Nigeria’s domestic and international efforts to combat terrorism financing and proliferation financing while strengthening the integrity and security of the financial system.

The regulator said further supervisory engagements would be undertaken where necessary.

The development comes as financial regulators globally continue to intensify scrutiny of illicit financial flows, with financial institutions increasingly expected to strengthen transaction monitoring, sanctions screening and suspicious transaction reporting.