The Central Bank of Nigeria (CBN) has strengthened its supervision of banks and other financial institutions to prevent the use of the financial system for terrorism financing and other illicit activities.
The apex bank said terrorism financing supervision is now one of its priorities as part of efforts to protect Nigeria’s financial system from abuse.
According to the CBN, its enhanced monitoring will focus on how financial institutions manage terrorism financing risks, monitor transactions, implement targeted financial sanctions and report suspicious transactions.
The bank said it would adopt a risk-based approach, with institutions considered more exposed to terrorism financing risks receiving closer supervision through on-site and off-site engagements.
The CBN also said the measures are in line with Nigeria’s legal and regulatory obligations on Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing.
The development follows the recent designation of six individuals and three entities as terrorist financiers by the Nigeria Sanctions Committee.
The CBN said financial institutions had been directed to immediately identify and freeze funds, assets and other economic resources belonging to the designated individuals and entities, and report them to the Nigeria Sanctions Committee.
The apex bank said further supervisory action would be taken where necessary.
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