The Central Bank of Nigeria (CBN) has unveiled a draft of its Baseline Standards for Automated Anti-Money Laundering (AML) Solutions, aimed at helping financial institutions detect and report suspicious transactions more effectively using emerging technologies.
In a letter signed by Dr. Olubukola Akinwunmi, Director of Banking Supervision, the CBN called on financial institutions to review the draft and submit feedback before the standards are finalized. The initiative reflects the CBN’s commitment to maintaining the integrity and stability of the Nigerian financial system in the face of increasing digitalization and the rise of innovative financial products.
According to the letter, the new standards are designed to:
- Improve AML, Counter-Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) capabilities using advanced technologies.
- Encourage the use of real-time solutions powered by Artificial Intelligence (AI), Machine Learning (ML), and Big Data.
- Minimize inefficiencies linked to manual AML processes.
- Align local compliance systems with global standards, including those from the Financial Action Task Force (FATF).
The exposure draft outlines key AML solution features such as risk profiling (including for Politically Exposed Persons), identity verification, sanction screening, transaction monitoring, and regulatory reporting.
The CBN has given financial institutions 12 months to align their AML systems with these new baseline standards once finalized. Ongoing training for AML teams, regular compliance checks, and industry-wide assessments will also be conducted to ensure effective implementation.
The central bank invites all stakeholders to review the draft and submit comments to help shape the final version.
