ABUJA — In a strategic move to strengthen Nigeria’s financial system and align with global regulatory trends, the Central Bank of Nigeria (CBN) has unveiled a draft framework for Automated Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) solutions.
The draft, titled “Baseline Standards for Automated AML Solutions,” was released for public feedback on Wednesday, signaling the CBN’s commitment to using technology for real-time compliance, surveillance, and risk management across financial institutions.
According to Dr. Olubukola Akinwunmi, Director of Banking Supervision at the CBN, the increasingly digital nature of Nigeria’s financial landscape demands a robust, AI-driven regulatory framework to effectively tackle illicit financial activities.
“The standard promotes operational efficiency and strengthens AML/CFT compliance in line with global best practices,” Akinwunmi stated.
Key Features of the Proposed AML/CFT Framework:
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Real-Time Monitoring & Alerts: Automated detection of high-risk activities, including crypto transactions and excessive cash deposits
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AI/ML Capabilities: Anomaly detection, behavior analysis, adaptive learning, and automated risk scoring
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Fuzzy Matching Algorithms: Improved name screening across global and local watchlists
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Integrated Compliance Tools: Seamless linkage with BVN and NIN for real-time onboarding and verification
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KYC & KYB Functions: Automated profiling using historical patterns and money laundering typologies
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Stress Testing & Accuracy Controls: Systems must conduct regular tests and optimize false positive thresholds
The framework also mandates centralized dashboards for case management and analytics, allowing institutions to quickly respond to alerts and regulatory obligations. The inclusion of AI and machine learning reflects global financial standards, particularly those recommended by the Financial Action Task Force (FATF).
As financial systems become more complex and prone to abuse—especially with the rise of virtual assets and cross-border transactions—the CBN is pushing for early adoption of smart surveillance mechanisms to close loopholes and enhance trust.
Public Feedback Invited
The apex bank is inviting stakeholders, financial institutions, and regulatory partners to review the draft and submit comments as part of a public consultation process. The final version of the standards is expected to guide compliance innovation in Nigeria’s financial sector.
