The Governor, Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, said the bank has imposed penalties totaling N15 billion on 29 banks in the country for money laundering breaches.
Cardoso disclosed this on Friday night in his keynote address at the 59th Bankers Dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN).
He said Nigeria is faced with significant challenges of money laundering, cybersecurity threats, fraud, corruption, and disparities in financial inclusion.
His words, “The cost of inaction is profound—fraud undermines confidence, corruption erodes trust, and money laundering perpetuates organized crime. As you may have noticed by now, compliance is a recurring theme in this speech, reflecting its critical importance to our mission.
“The compliance culture I envision for our industry is one where executives and boards set the tone by making compliance a strategic priority, championing zero tolerance for breaches—not just in policy, but in practice.
He also said financial institutions should anticipate vulnerabilities and proactively address risks in areas susceptible to abuse while teams are educated to recognize red flags and encouraged to report concerns about fraud, money laundering, or unethical behavior, knowing they are protected.
“Institutions should know their customers and partners, conducting enhanced due diligence, especially for high-risk clients, politically exposed persons, and vendors, ensuring operations are not conduits for illicit funds.
“The industry should also collaborate to combat systemic threats, sharing information on emerging risks, cooperating with law enforcement, and maintaining open communication with the central bank and regulators.
He added that starting in 2025, financial institutions will be required to refine their compliance and governance frameworks to address evolving risks.
“We are enhancing regulatory effectiveness and accountability, as demonstrated by recent changes to our supervisory and enforcement approach.
“Recently, penalties totaling ₦15 billion were imposed on 29 banks for breaches, including AML/CFT violations. In addition to these penalties, the banks are required to address the root causes of the lapses, which is crucial for improving regulatory effectiveness. Historically, the industry has struggled with recurring issues, but we are confident that this approach will help change that narrative”.
He added that, “A bank that prioritizes compliance does more than protect itself—it strengthens the entire financial ecosystem. It directs financial resources toward growth, innovation, and prosperity rather than crime and corruption. Together, we must exceed standards, demonstrating to the public and the world that we are stewards of integrity and trust”.
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