Nigeria’s central bank introduces mandatory automated AML systems to strengthen detection of financial crimes across the country’s digital banking system.
The Central Bank of Nigeria has introduced new regulations requiring financial institutions to deploy automated anti-money laundering (AML) systems to strengthen financial crime detection.
In a circular issued on March 10, the regulator directed banks, mobile money operators, payment service providers, and international money transfer operators to adopt technology-driven monitoring tools capable of detecting suspicious transactions in real time.
The guidelines require institutions to integrate customer identification, transaction monitoring, sanctions screening, and risk assessment capabilities into their AML systems. Advanced technologies including artificial intelligence, machine learning, and predictive analytics will be used to improve risk detection.
Deposit money banks have been given 18 months to achieve full compliance, while other financial institutions have up to 24 months to implement the required systems. According to the circular signed by Akinwunmi A. Olubukola, the directive aims to strengthen compliance with financial crime regulations and support oversight by the Nigerian Financial Intelligence Unit.
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