CBN fines 29 Nigerian banks N15 billion for anti-money laundering and anti-terrorism violations

• The Central Bank of Nigeria has fined 29 banks N15 billion for violating anti-money laundering and anti-terrorism financing regulations.
• The CBN Governor highlighted the seriousness of these violations and the need for the affected banks to address the fundamental issues.
• He further said that compliance with regulations is a top priority for the CBN to promote national stability and development.

Zainab Iwayemi Legit Journalist has 5 years of experience covering economics, technology and Capital market.

A total of N15 billion in fines was imposed on 29 banks by the Central Bank of Nigeria (CBN) for violating Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) laws.

At the Chartered Institute of Bankers of Nigeria (CIBN) Bankers Night 2024 in Lagos, CBN Governor Olayemi Cardoso made the announcement.

Cardoso emphasized in his remarks the seriousness of these violations and the need for the affected banks to correct the structural flaws that allowed these failures to occur. BusinessDay reported.

“In addition to these sanctions, banks are required to address the root causes of failures, which is crucial to improving regulatory effectiveness. Historically, the industry has faced recurring problems, but we are confident that this approach will help change that narrative,” Cardoso said.

The wider implications of compliance

The governor of the CBN highlighted the broader effects of compliance on the financial system, emphasizing that organizations that place a high priority on regulatory compliance support national stability and progress.

“A bank that prioritizes compliance does more than protect itself: it strengthens the entire financial ecosystem. It directs financial resources towards growth, innovation and prosperity rather than towards crime and corruption. Together, we must exceed standards, demonstrating to the public and the world that we are guardians of integrity and trust,” he added.

Cardoso added that non-compliance has repercussions that go beyond fines imposed by the government. He says problems like fraud, corruption and money money laundering threatens the heart of financial system.

“The cost of inaction is profound: fraud undermines trust, corruption erodes trust, and money laundering perpetuates organized crime,” he noted.

A vision for a culture of compliance

The governor set the goal for the Nigerian banking sector to have a strong culture of compliance. He stressed that financial institutions must be proactive in identifying and mitigating risks, in addition to complying with legal requirements.

According to Cardoso, boards and CEOs must lead by example by strategically prioritizing compliance and advocating zero tolerance for violations, both in policy and in reality. He advised financial institutions to aggressively manage risks in high-risk areas and plan for vulnerabilities.

CBN offers simple solution as cash dries up at ATMs

Legitime.ng reported that the Central Bank of Nigeria (CBN) was set to penalize negligent financial companies for the persistent cash shortage in automated teller machines (ATMs).

CBN Governor, Dr. Olayemi Cardoso, made this known on Friday at the annual Bankers’ Dinner organized by the Chartered Institute of Bankers of Nigeria.

The statement was made in response to reports of cash shortages at banks in recent days, both at ATMs and tellers.

Source: Legit.ng