Olushola Omogbehin
Financial institutions and Deposit Money Banks across Nigeria have been given 24 and 18 months respectively to fully comply with the Central Bank of Nigeria’s new baseline standards for automated anti-money laundering solutions.
This was disclosed in a release dated March 10, 2026, where CBN said, “The implementation of these guidelines shall start from the date of issuance, while full compliance shall be 18 months (for Deposit Money Banks) and 24 months (for Other Financial Institutions) from the date of issuance.”
This is a further extension from the first 12 months given by CBN when the guideline was newly proposed.
Signed by CBN’s Director of Banking Supervision Department, Akinwunmi Olubukola, and Olubunmi Ayodele-Oni for the Director, Compliance Department, the circular was addressed to all financial institutions, all banks, mobile money operators, payment service providers and international money transfer operators.
With the title, Issuance of Baseline Standards for Automated Anti-Money Laundering Solution for Financial Institutions in Nigeria, the circular ordered institutions to submit implementation roadmaps to its Compliance Department within three months from the date of issuance, tightening the transition timetable for the new compliance regime.
According to CBN, the aims of the new standard was to promote financial system stability and integrity.
“The Baseline Standards provide a framework for implementing automated solutions that strengthen the detection and reporting of suspicious transactions in real time and enhance compliance with applicable AML/CFT/CPF laws and regulations, while also supporting the use of emerging technologies to improve overall financial crime risk management,” the bank stated.
As the CBN Act, 2007 and the Banks and Other Financial Institutions Act, 2020, are meant to complement, not replace, existing legal obligations, every bank and financial institution under the CBN must operate automated AML solutions.
The apex bank further stressed that as manual controls are no longer enough in a world where financial services are becoming more digitised, institutions must make use of systems that support risk-based customer due diligence, enable timely detection of suspicious activities and facilitate accurate and timely reporting to the CBN, the Nigerian Financial Intelligence Unit, and other authoritie
As this model also encourage machine learning, AI and advanced analytics with independent annual validation, accuracy checks and fairness audits, high-risk sectors or subsectors must apply enhanced monitoring capabilities to ensure AML systems integrate with KYC/KYB repositories and customer risk profiles.
As compliance will be monitored through off-site surveillance, on-site examinations, thematic reviews, and other supervisory mechanisms, CBN says institutions looking for fresh authorisation must show compliance with credible plan presentation.
Warning, CBN said failure to meet the standards may lead to some penalties and administrative sanctions.
“All stakeholders are required to ensure strict compliance with the guidelines and all other regulations, as the CBN continues to monitor developments and issue further guidance as may be appropriate.”
