The Central Bank of Nigeria (CBN) has imposed penalties totalling N15 billion on 29 banks for violations including breaches of anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations, Governor Olayemi Cardoso disclosed on 29 November 2024.
Cardoso made the disclosure in his keynote address at the Chartered Institute of Bankers of Nigeria (CIBN) annual bankers' dinner in Lagos, describing the sanctions as part of efforts to address compliance lapses and strengthen regulatory accountability in the financial sector.
COMPLIANCE FRAMEWORKS TO BE REFINED
“Starting in 2025, financial institutions will be required to refine their compliance and governance frameworks to address evolving risks,” Cardoso said. He said the penalties were intended not only to hold banks accountable but also to push for systemic improvements that would prevent recurrent violations.
The governor also addressed cash availability, saying that from 1 December 2024 customers facing difficulties withdrawing cash from bank branches or ATMs would be able to report them directly to the CBN through designated phone numbers and email addresses for their states. “I repeat, financial institutions found engaging in malpractices or deliberate sabotage will face stringent penalties,” he said.
On the foreign exchange market, Cardoso said foreign portfolio inflows rose 72% in the first half of 2024 compared with the same period of 2023, and that average daily turnover in the Nigerian Autonomous Foreign Exchange Market increased 226% year on year. He said external reserves had risen from $32 billion in May 2023 to more than $40 billion. The CBN planned to launch an electronic FX matching system on 2 December 2024.
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