The Central Bank of Nigeria (CBN) has issued new baseline standards for automated anti-money laundering (AML) solutions, directing banks and other financial institutions to deploy technology-driven systems capable of detecting suspicious transactions and strengthening financial crime compliance.
The directive was contained in a circular dated March 10, 2026, titled “Issuance of Baseline Standards for Automated Anti-Money Laundering (AML) Solutions for Financial Institutions in Nigeria.”
The circular, signed by Akinwunmi Olubukola, Director of the Banking Supervision Department, and Olubunmi Ayodele-Oni on behalf of the Director of the Compliance Department, applies to banks, mobile money operators, international money transfer operators, payment service providers, and other regulated financial institutions.
According to the apex bank, the standards are designed to strengthen Nigeria’s financial crime detection framework as financial services become increasingly digital.
“The Baseline Standards provide a framework for implementing automated solutions that strengthen the detection and reporting of suspicious transactions in real time and enhance compliance with applicable AML/CFT/CPF laws and regulations,” the circular stated.
The CBN said implementation of the guidelines takes effect immediately, but financial institutions have been given specific timelines to comply fully.
Deposit money banks are required to achieve full compliance within 18 months, while other financial institutions have up to 24 months to meet the requirements.
“Therefore, institutions shall submit implementation roadmaps to the Compliance Department within three months from the date of issuance,” the regulator said.
The apex bank explained that the move reflects the growing complexity of financial transactions and the limitations of traditional manual compliance systems.
“As financial services become increasingly digitised and complex, manual AML/CFT/CPF controls are no longer sufficient to manage evolving risks,” the CBN said.
Under the new framework, financial institutions are required to deploy automated AML platforms capable of supporting a wide range of compliance functions, including customer identification and verification, risk assessment and customer profiling, sanctions and politically exposed persons screening, transaction monitoring, regulatory reporting and investigation management.
The systems are also expected to integrate with core banking platforms and other operational systems to enable comprehensive monitoring of transactions across products, channels and customer profiles.
“For the avoidance of doubt, the CBN expects automated AML solutions to assess activity in the context of the full customer profile and not monitor solely on raw transactional data,” the document stated.
The guidelines also permit the deployment of advanced technologies such as artificial intelligence, machine learning and predictive analytics to enhance the detection of suspicious patterns and financial crime risks.
However, the CBN stressed that such technologies must be subject to strict governance and oversight.
Financial institutions are required to conduct independent validation of artificial intelligence and machine-learning models at least once a year, including reviews of accuracy, performance drift, fairness, bias testing and other risk-control measures.
In addition, the standards require banks and financial institutions to strengthen their Know-Your-Customer (KYC) and customer due diligence procedures through automated systems.
The CBN encouraged the integration of identity verification processes with national infrastructure such as the Bank Verification Number (BVN) and National Identification Number (NIN) databases to enable real-time identity checks.
Financial institutions are also required to screen customers and transactions against domestic and international sanctions lists, politically exposed persons registers, internal watchlists, and adverse media sources.
Where confirmed sanctions matches occur, the AML platforms must be capable of blocking account onboarding or transactions in line with regulatory requirements.
The systems must also monitor activities across electronic channels, card payments, deposits, and lending platforms to detect unusual patterns that may indicate fraud.
The CBN said compliance with the standards would be monitored through off-site surveillance, on-site examinations, and thematic regulatory reviews.
Institutions that fail to meet the requirements risk regulatory action, including remedial directives, administrative sanctions, and financial penalties.
According to the apex bank, the new standards represent the minimum compliance threshold and may be strengthened depending on the risk profile and operational complexity of individual institutions.
The initiative, the CBN added, is expected to enhance Nigeria’s ability to prevent, detect, and report money laundering, terrorism financing, and proliferation financing, while reinforcing the integrity and stability of the country’s financial system.