CBN to Banks and Fintechs: Step Up Sanctions Checks or Prepare for Consequences

The Central Bank of Nigeria isn’t mincing words.

In a no-nonsense directive issued on April 17, 2025, the CBN has made it clear: comply with sanctions rules—or face the fallout.

Addressed to all banks, fintechs, and payment service providers, the letter—signed by Amonia Opusunju on behalf of the Director of Compliance—demands immediate action to reinforce internal compliance systems or risk regulatory penalties.

“This is not a suggestion. It’s a mandate,” the CBN warns.

The Stakes Are Higher Than Ever

Nigeria is under growing international scrutiny, and the CBN is moving to clean house. From the UN Consolidated Sanctions List to the Nigerian Sanctions List under the Terrorism (Prevention and Prohibition) Act, every institution is now on notice.

Compliance isn’t just about ticking boxes. Institutions are expected to:

• Run real-time screening of all customers and transactions
  
• Identify and block dealings with sanctioned individuals or entities
  
• Submit timely reports to the Nigerian Financial Intelligence Unit (NFIU)
  
• Notify the CBN when suspicious activity arises
  

Failing to do so won’t just attract fines—it could bring audits, license scrutiny, or worse.

No Exemptions for Innovation

Fintechs, in particular, are being told to build compliance into their code. “Disruption without discipline will no longer fly,” the CBN implies. From onboarding to backend, startups must prove they’re not a weak link in the fight against financial crime.

This move is more than regulatory housekeeping—it’s a strategic crackdown. As Nigeria tries to repair its standing with global watchdogs like the Financial Action Task Force (FATF), the CBN is tightening the screws.

Institutions have two options: invest in smarter compliance systems or brace for enforcement.

Because in today’s financial system, sloppiness is a liability—and the CBN is watching.