The Central Bank of Nigeria (CBN) is intensifying regulatory oversight to strengthen the financial system by enhancing compliance measures and risk management frameworks. A recent training workshop highlighted the importance of aligning with global banking standards to prevent financial crimes and increase investor confidence. Key initiatives include improving anti-money laundering practices and establishing robust governance structures within financial institutions.
The Central Bank of Nigeria (CBN) has taken significant steps to fortify the financial sector by enhancing regulatory oversight. This initiative includes improving risk management frameworks and ensuring adherence to global banking standards, all aimed at curbing financial crimes and increasing transparency. The CBN’s commitment was emphasized at a recent workshop focusing on compliance and anti-money laundering (AML) strategies, hosted in collaboration with Citi in Lagos.
Ms. Shola Phillips, the Special Adviser to the CBN Governor on Compliance, highlighted the necessity of aligning Nigerian financial institutions with international compliance frameworks. This alignment is crucial for mitigating risks associated with financial crimes and fostering a more transparent banking environment in Nigeria. The CBN reiterated its dedication to implementing effective AML and counter-financing of terrorism (AML/CFT) measures as a priority.
The workshop, which gathered compliance officers and banking specialists, aimed to discuss global regulatory trends and emerging financial risks. It provided valuable insights into the strategies needed for Nigeria to comply with international banking standards. Experts at the event stressed the importance of strong governance structures to uphold the integrity of the financial system.
Siobhan Ni Ealaithe, Managing Director of Citi’s Correspondent Banking Group, underscored the critical need for robust governance frameworks to prevent financial crimes. She advocated for the implementation of Know Your Customer (KYC), Know Your Business (KYB), and Know Your Transaction (KYT) protocols as key measures. Additionally, Stephanie Bailey, head of EMEA AML Risk Management for Foreign Correspondent Banking, indicated that about $3 trillion in illicit funds annually circulate through the global system, calling for enhanced due diligence and technology integration in compliance efforts.
This initiative aligns with CBN Governor Olayemi Cardoso’s vision for maintaining regulatory excellence and supporting Nigeria’s financial system. Cardoso stated that trust is fundamental in building a strong financial system, emphasizing that integrity and compliance are crucial. The CBN is committed to setting high regulatory standards to protect the financial ecosystem and ensure alignment with global best practices, ultimately fostering a robust culture of compliance and risk management in the sector.
In summary, the Central Bank of Nigeria has reinforced its commitment to strengthening the financial sector through enhanced regulatory measures and compliance initiatives. By prioritizing anti-money laundering efforts and robust governance frameworks, the CBN aims to mitigate financial crimes and uphold trust in its banking system. This proactive approach is essential for aligning Nigeria’s financial practices with international standards and ensuring the resilience of its banking environment.
Original Source: www.thisdaylive.com
