Financial Crimes: CBN Sends Message to Banks, Fintech, Others about Monitoring, Compliance

• Nigerians were shaken in the past week when an online investment platform crashed, trapping trillions of naira belonging to investors
• As efforts are still ongoing to trace the funds, the Central Bank of Nigeria has sent a warning to financial institutions
• The apex bank wants the banks and fintech to take certain actions regarding compliance and report to the authorities

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

In the wake of the recent chaos that trailed the collapse of an online investment scheme, and the loss of trillions of naira belonging to investors, the Central Bank of Nigeria has sent out a warning to banks, payment service providers, and financial technology companies.

The regulator warned them as key players in Nigeria’s financial space, to tighten their sanctions compliance framework, or risk facing enforcement actions from CBN.

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The warning was contained in a circular dated April 17, 2025, and signed by Amonia Opusunju for the Director, Compliance Department.

CBEX collapses, trillions of investors’ funds lost

After days of trending on social media, CBEX, an online investment platform, reportedly crashed.

Trillions of naira belonging to investors in several countries have been trapped on the platform, but checks show that Nigerians make up 80% of the affected victims.

Cybersecurity and finance experts have tried to trace the funds through several cryptocurrency wallets.

The issue has raised concerns about Nigeria's financial sector and investment regulation, with questions about how the money moved through the financial systems without leaving a trace.

CBN orders banks, fintech to tighten compliance

The CBN circular also reminded the financial institutions of their obligation to comply with domestic and international sanctions lists. These include:

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• The United Nations Consolidated Sanctions List;
• Nigerian Sanctions List in line with the Terrorism (Prevention and Prohibition) Act 2022;
• CBN AML/CTF/PTF Regulations 2022;
• CBN guidelines on targeted financial sanctions related to terrorism and terrorism financing;
• Other relevant regional or international sanctions as applicable.

In line with these provisions, banks, fintechs, and other financial institutions are expected to build and maintain a robust and responsive compliance structure.

The circular listed the requirements to include;

• Identify and respond promptly to updates or changes across all applicable sanctions lists;
• Prevent the use of their systems and platforms for transactions involving designated individuals or entities;
• Conduct real-time screening of customers, transactions, and beneficial owners;
• File appropriate reports with the Nigerian Financial Intelligence Unit and notify the CBN, where necessary.

The CBN circular stressed:

“Financial institutions are also reminded that failure to comply may result in enforcement action or regulatory sanctions. This letter serves as a regulatory reminder and all financial institutions are expected to take note, act accordingly and ensure continued compliance with applicable laws and CBN directives.”

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The apex bank also urged financial institutions to conduct periodic reviews of their compliance framework in line with legal and regulatory requirements.

This move from the regulator is coming at a time governments around the world are beaming the searchlight on financial crimes as a means to check money-laundering and terrorism-financing activities.

The warning from the CBN urges the financial institutions to become watchdogs, and incorporate compliance mechanisms into their systems and platforms, as they continue to upgrade with innovations.

CBN warns Nigerians against fraudulent schemes

In related news by Legit.ng, the CBN warned Nigerians about fake contracts and financial schemes, advising them to always verify and do their due diligence.

The apex bank encouraged Nigerians to remain vigilant and report suspicious activities to law enforcement agencies.

It noted that getting their funds back from fraudulent schemes were always difficult and sometimes impossible. Therefore, it was better to prevent it.

Proofreading by Kola Muhammed, copy editor at Legit.ng.

Source: Legit.ng