CBN Fines 29 Nigerian Banks N15bn for Anti-Money Laundering, Counter-Terrorism Violations
- The Central Bank of Nigeria fined 29 banks a total of N15 billion for violating anti-money laundering and counter-terrorism financing regulations.
- The CBN governor underlined the gravity of these violations and the need for the affected banks to address the fundamental issues
- It further stated that adherence to regulations is a top priority for the CBN in order to promote stability and national development
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
A total of N15 billion in fines was levied against 29 banks by the Central Bank of Nigeria (CBN) for breaking anti-money laundering (AML) and counter-terrorism financing (CTF) laws.
Source: Getty Images
At the Chartered Institute of Bankers of Nigeria (CIBN) 2024 Bankers' Night in Lagos, CBN Governor Olayemi Cardoso made this announcement.
Cardoso emphasized in his remarks the seriousness of these infractions and the necessity for the impacted banks to fix the structural flaws that permitted these failures to happen, BusinessDay reported.
PAY ATTENTION: Standing out in social media world? Easy! "Mastering Storytelling for Social Media" workshop by Legit.ng. Join Us Live!
“In addition to these penalties, the banks are required to address the root causes of the lapses, which is crucial for improving regulatory effectiveness. Historically, the industry has struggled with recurring issues, but we are confident that this approach will help change that narrative,” Cardoso stated.
The Broader Implications of Compliance
The governor of the CBN emphasized the wider effects of compliance on the financial system, pointing out that organizations that place a high priority on following regulations support stability and national progress.
“A bank that prioritises compliance does more than protect itself -it strengthens the entire financial ecosystem. It directs financial resources toward growth, innovation, and prosperity rather than crime and corruption. Together, we must exceed standards, demonstrating to the public and the world that we are stewards of integrity and trust,” he added.
Cardoso added that non-compliance has repercussions that go beyond fines imposed by the government. He asserts that problems like fraud, corruption, and money laundering threaten the core of the financial system.
“The cost of inaction is profound—fraud undermines confidence, corruption erodes trust, and money laundering perpetuates organized crime,” he remarked.
A Vision for a Culture of Compliance
The governor outlined a goal for Nigeria's banking sector to have a strong compliance culture. He emphasized that financial institutions need to be proactive in identifying and reducing risks in addition to adhering to legal requirements.
According to Cardoso, boards and CEOs need to set an example by prioritizing compliance strategically and advocating for zero tolerance for violations, both in terms of policy and in actuality. He advised financial institutions to aggressively handle risks in high-risk locations and foresee vulnerabilities.
CBN gives simple solution as cash dries up in ATMs
Legit.ng reported that the Central Bank of Nigeria (CBN) is set to penalize negligent financial firms for the ongoing cash shortage at Automated Teller Machines (ATMs).
CBN Governor Dr. Olayemi Cardoso made this known on Friday at the annual Bankers' Dinner hosted by the Chartered Institute of Bankers of Nigeria.
The declaration was made in response to reports of cash shortages in banks in recent days, both at ATMs and over the counter.
PAY ATTENTION: Legit.ng Needs Your Opinion! That's your chance to change your favourite news media. Fill in a short questionnaire
Source: Legit.ng
