As part of its continuous efforts to improve regulatory efficacy and simplify supervisory duties, the Central Bank of Nigeria (CBN) has formally announced the creation of a dedicated Compliance Department.
Olubunmi Ayodele-Oni signed a circular stating that the new department was established in Q1 2025 and that full operational responsibilities would start in Q2 2025. The action is a component of a larger structural reform that aims to ensure targeted supervision of emerging and non-prudential risks, clarify institutional roles, and consolidate oversight functions.
Continuing, through established communication protocols, the CBN has instructed all regulated financial institutions to direct future reports, correspondence, and questions about these areas to the Director of the Compliance Department. The Department will provide additional guidance to institutions regarding designated points of contact and submission procedures.
According to the circular available to BrandSpur banking and finance news desk: “The establishment of the Compliance Department is a strategic move to embed regulatory discipline and ensure robust oversight of non-prudential risks.”
To establish a seamless transition and maintain the highest regulatory compliance standards, the CBN reiterated its dedication to collaborating with financial institutions.
It is pertinent to know that the CBN issued a warning in July about a sharp increase in financial fraud cases in the nation, stating that fraud increased by 45% in just a single year and that 70% of the losses that resulted were attributable to digital channels, specifically unregulated virtual asset platforms.
At a public lecture hosted by the Economic and Financial Crimes Commission (EFCC), CBN Governor Olayemi Cardoso revealed this in a speech made on his behalf by Deputy Governor for Economic Policy Muhammad Sani Abdullahi. He went on to say that a significant rise in fraud is revealed by the CBN’s Financial Stability Report 2024.
The Apex Bank boss, pointed out that although digital innovation has made it possible for more people to have access to financial services, it has also brought about complicated security and regulatory issues.
However, there are some key areas now under the jurisdiction of the Compliance Department which include:
- Financial crime supervision, which includes compliance with sanctions, counter-proliferation financing (CPF), counter-money laundering (AML), and counter-financing of terrorism (CFT)
- Advertising standards, complaint handling, and disclosure procedures are all covered by Market Conduct Supervision.
- Third-party risk management, data protection, and cybersecurity are all included in Enterprise Security Supervision.
- ESG and Corporate Governance Supervision, with an emphasis on board performance and environmental, social, and governance monitoring
