CBN Enhances Regulatory Oversight to Fortify Nigeria’s Financial System

The Central Bank of Nigeria (CBN) is enhancing regulatory oversight to ensure a transparent financial system. A recent workshop emphasized compliance with global standards and the importance of robust governance to combat financial crime. CBN Governor Olayemi Cardoso reiterated the need for integrity and compliance to build public trust in the financial sector.

The Central Bank of Nigeria (CBN) has reinforced its dedication to fostering a transparent and resilient financial sector through enhanced regulatory compliance and risk management for financial institutions in Nigeria. During a recent compliance and anti-money laundering training workshop co-hosted with Citi in Lagos, Ms. Shola Phillips, Special Adviser to the CBN Governor on Compliance, addressed the vital importance of adhering to global banking standards to sustain trust in Nigeria’s financial landscape.

Ms. Phillips underscored the expectation for financial institutions to develop risk-based anti-money laundering (AML) and counter-financing of terrorism (CFT) programs tailored to the evolving financial environment. She stated that proactive involvement with regulatory advancements and the incorporation of innovative compliance solutions are essential for meeting these expectations successfully. The workshop was attended by professionals from various financial sectors, focusing on recent regulatory trends and strategies to maintain correspondent banking relationships.

Siobhan Ni Ealaithe, Managing Director of Citi’s Correspondent Banking Group, emphasized the importance of solid governance frameworks in risk mitigation. She highlighted the criticality of implementing Know Your Customer (KYC), Know Your Business (KYB), and Know Your Transaction (KYT) protocols to avert illicit financial activities.

Furthermore, Stephanie Bailey, Head of EMEA AML Risk Management for Foreign Correspondent Banking, provided a concerning perspective on financial crime. She announced that over $3 trillion in illicit funds circulate through the global financial system each year, stressing the need for financial entities to enhance due diligence, utilize technology for risk assessments, and maintain transaction transparency.

This workshop encapsulates the vision of CBN Governor Olayemi Cardoso, who is committed to reinforcing regulatory excellence in Nigeria’s financial framework. Governor Cardoso stated, “A strong financial system is built on trust, and trust is earned through integrity and compliance. The CBN will continue to set high regulatory standards to protect Nigeria’s financial ecosystem and ensure its alignment with global best practices.” By promoting compliance and enhancing risk management structures, the CBN seeks to protect Nigeria’s financial sector and uphold its credibility and resilience on both domestic and international stages.

In summary, the Central Bank of Nigeria has taken significant steps to fortify its regulatory oversight to ensure the integrity of the financial system. The emphasis on global compliance standards, robust governance, and modern risk assessment technologies reflects a proactive approach to financial stability. By adhering to these principles, Nigeria’s financial institutions can strengthen their credibility and resilience, thereby fostering trust within the economic landscape.

Original Source: thewhistler.ng