The Central Bank of Nigeria has launched a new Compliance Department to strengthen regulation and fight financial crimes.
Officials say the unit will also oversee cybersecurity, corporate governance, and market conduct in banks.
The Central Bank of Nigeria (CBN) has launched a specialized Compliance Department, with the objective of enhancing regulatory adherence, fighting financial crime, and tackling new non-prudential risks within the financial sector.
According to a circular signed by Olubunmi Ayodele-Oni, the department was established in the first quarter of 2025 and assumed complete operational duties in the second quarter of the year. The development is part of broader structural reforms designed to streamline supervisory roles and consolidate oversight functions.
The new department has been mandated to supervise four major areas critical to financial system stability: Oversight of financial crimes, which includes Anti-Money Laundering (AML), Counter-Terrorist Financing (CFT), Counter-Proliferation Financing (CPF), and adherence to international sanctions.
Market conduct supervision monitoring disclosure standards, complaint handling, and advertising practices. Enterprise security supervision strengthening cybersecurity frameworks, safeguarding data, and managing third-party risks. Corporate governance & ESG Supervision evaluating board effectiveness and ensuring compliance with Environmental, Social, and Governance (ESG) standards.
The CBN has instructed all regulated financial institutions to route future reports, correspondence, and compliance-related inquiries directly to the Director of the Compliance Department. Additional guidance on contact points and submission procedures will be issued.
“The establishment of the Compliance Department is a strategic move to embed regulatory discipline and ensure robust oversight of non-prudential risks,” the apex bank stated.
The announcement comes amid growing concerns over financial fraud, which has surged by 45% within one year, according to the CBN’s Financial Stability Report 2024. The report highlighted that 70% of recorded losses originated from digital channels, particularly unregulated virtual asset platforms.
CBN Governor Olayemi Cardoso, represented by Deputy Governor for Economic Policy Muhammad Sani Abdullahi, disclosed the figures at an EFCC public lecture in July 2025. He noted that while digital innovation has expanded financial inclusion, it has also created new regulatory and security challenges.
In addition to the compliance reforms, the CBN has recently directed all participants in Nigeria’s payments ecosystem including Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Mobile Money Operators (MMOs), Super Agents, and Payment Service Providers to complete migration to the ISO 20022 messaging standard and implement geo-tagging of payment terminals by October 31, 2025.
ISO 20022, now recognized as the global benchmark for payments messaging, is expected to enhance interoperability, improve transaction transparency, and strengthen fraud detection across Nigeria’s financial landscape.
