₦airaland Forum

The Central Bank of Nigeria has introduced new compliance rules that will require banks, fintech companies and other financial institutions in Nigeria to deploy automated anti money laundering systems to monitor transactions and detect suspicious financial activities.

According to the apex bank, the move is aimed at strengthening Nigeria’s ability to detect and prevent money laundering, terrorism financing and proliferation financing within the financial system.

Under the new guideline, deposit money banks will have 18 months to fully implement the automated systems.

Other financial institutions such as fintech companies, mobile money operators and payment service providers have been given 24 months to comply.

The directive means financial institutions will need to begin transitioning from mostly manual monitoring processes to technology driven systems capable of tracking financial transactions in real time.

The Central Bank also instructed all affected institutions to submit detailed implementation plans within three months to its Compliance Department explaining how they intend to deploy the automated systems.

These automated AML platforms typically rely on advanced analytics, transaction monitoring tools and artificial intelligence to scan large volumes of financial transactions and flag unusual patterns that may indicate financial crime.

Regulators believe the new framework will significantly improve the speed, efficiency and accuracy of detecting suspicious activities across Nigeria’s financial sector.

Nigeria’s banking and fintech ecosystem has grown rapidly over the past decade, handling massive volumes of digital transactions daily. Regulators say adopting automated monitoring systems is necessary to keep up with the scale and complexity of modern financial activities.

The Central Bank also stated that it will continue monitoring the financial system and may release additional guidelines where necessary to ensure effective implementation.

Source:
https://businessday.ng/news/article/banks-fintechs-face-new-cbn-deadline-for-automated-aml-systems/

What do you think about this new directive?

Will automated monitoring help reduce financial crimes in Nigeria or will it simply increase operational costs for banks and fintech companies?

Nairalanders, let’s discuss

Hmmm
Yet boko haram keep procuring sophisticated ammunition and tech

As long as you have pro-terrorist like pantami around the system it doesn't matter what you implement

All the indicted financiers during Buhari tenure are all walking free today

It's a welcome development, if well implemented. Though bank chiefs and top politicians will always have their way

Sikirulahi:
CBN really means business this time.

Yimu! Those that will launder will still launder. Especially politicians and corrupt government officials.

And have still not caught one bandit with bvn, nin, and all the shi... they claimed

Well! That's a welcome decision from the APEX BANK.
NO PRESSURE, PLEASE.

Dtruthspeaker:
And have still not caught one bandit with bvn, nin, and all the shi... they claimed

leave cbn and their policies.

How bandits flaunt cash is something not nice

What about the transactions across the blockchain?

Nice move, we will get there

mycar:
What about the transactions across the blockchain?

That's a different financial ecosystem entirely

The only people who will be caught by this system are government officials who are in the habit of asking for bribes

New World Economic Order....

Dtruthspeaker:
And have still not caught one bandit with bvn, nin, and all the shi... they claimed

the goal is not to catch bandits but to track you and keep you poor

Yahoo boys are about to be reduced

Henix:
It's a welcome development, if well implemented. Though bank chiefs and top politicians will always have their way

The bank Chiefs are the real cooperate criminals

Is CBN just there to make policy?
Can't they design the system and release it to the bank to implement into their platforms?
The same question I asked when Nigerian banks moved their core banking system from foreign countries to an indigenous service provider because of the high dollar rate. Can't CBN come in and provide this service?

If CNB is providing majority of these services, for me I think it will be easy for them to implement their law and rules.

iOYEN:
Is CBN just there to make policy?
Can't they design the system and release it to the bank to implement into their platforms?
The same question I asked when Nigerian banks moved their core banking system from foreign countries to an indigenous service provider because of the high dollar rate. Can't CBN come in and provide this service?

If CNB is providing majority of these services, for me I think it will be easy for them to implement their law and rules.

You have a very interesting point.

Kobicove:
The only people who will be caught by this system are government officials who are in the habit of asking for bribes

They don't use their accounts to receive it

They rob poor masses to go and fund terrorists and bandits, wicked people, may the universe curse all of you...

A Good news. If you're not laundering money, then you have nothing to be scared of

mycar:
What about the transactions across the blockchain?

They have no parts in that they can only regulate the amount of inflow and outflow through regulating how people fund their wallet and withdraw into fiat.

Dpsychologist:
Source:
https://businessday.ng/news/article/banks-fintechs-face-new-cbn-deadline-for-automated-aml-systems/

What do you think about this new directive?

Will automated monitoring help reduce financial crimes in Nigeria or will it simply increase operational costs for banks and fintech companies?

Nairalanders, let’s discuss

It will increase Operational Cost and it will also Help in Reducing Financial Crimes in Nigeria.

Kobicove:
The only people who will be caught by this system are government officials who are in the habit of asking for bribes

The law makers have already mapped out another alternative to carry out their schemes they're only setting this to grab the common man by thr balls.

iOYEN:
Is CBN just there to make policy?
Can't they design the system and release it to the bank to implement into their platforms?
The same question I asked when Nigerian banks moved their core banking system from foreign countries to an indigenous service provider because of the high dollar rate. Can't CBN come in and provide this service?

If CNB is providing majority of these services, for me I think it will be easy for them to implement their law and rules.

They play regulatory role. If they do that they would weild more unhealthy power.

Parachoko:
A Good news. If you're not laundering money, then you have nothing to be scared of

Lol. Worry about the lack of electricity and fuel.

Eastcoastboy:
Lol. Worry about the lack of electricity and fuel.

Yes o, Every part of Nigeria was enjoying 24/7 Power Supply and fuel was free for all Nigerians before Asiwaju became the President.

EDGEof2MORO:
the goal is not to catch bandits but to track you and keep you poor

You have said it. Govt too are bandits

iOYEN:
Is CBN just there to make policy?
Can't they design the system and release it to the bank to implement into their platforms?
The same question I asked when Nigerian banks moved their core banking system from foreign countries to an indigenous service provider because of the high dollar rate. Can't CBN come in and provide this service?

If CNB is providing majority of these services, for me I think it will be easy for them to implement their law and rules.

Smiles
When all the experience tech done japka