CBN strengthens financial system with new compliance unit

The establishment of the Compliance Department is part of the CBN’s broader efforts to improve regulatory efficiency and effectiveness, according to a circular issued to regulated financial institutions on Thursday.

By clarifying institutional responsibilities and focusing on emerging risks, the CBN aims to promote a more stable and secure financial environment.

“This structural reform forms part of the Bank’s broader efforts to consolidate and embed regulatory effectiveness within existing supervisory frameworks, clarify institutional responsibilities, and maintain focused oversight of non-prudential and emerging risks,” CBN said.

The apex bank added that the Compliance Department has taken over responsibilities in four key areas, including, “Financial crime supervision, covering anti-money laundering, counter-terrorism financing, counter-proliferation financing, and sanctions compliance.

“Market conduct supervision, including disclosure practices, complaints management, and advertising standards. Enterprise security supervision covering cybersecurity, data protection, and third-party risk management; and corporate governance and ESG supervision focusing on board effectiveness and oversight of environmental, social, and governance oversight.”

The financial regulator further said all regulatory reports, correspondence, and related inquiries concerning the matters should be directed to the director of the Compliance Department, through the established communication channels.

The apex bank added that institutions will receive direct guidance on specific points of contact and submission procedures.

The CBN said it looks forward to continued cooperation from all institutions to ensure a smooth transition and to uphold the highest standards of compliance with applicable regulatory requirements.