The Central Bank of Nigeria (CBN) is strengthening regulatory oversight to enhance compliance and risk management within financial institutions. A recent training workshop highlighted the importance of adhering to global banking standards to maintain sector confidence. Key discussions included the necessity of KYC protocols and the risks associated with illicit financial activities. CBN Governor Olayemi Cardoso emphasized the importance of integrity in building a trustworthy financial ecosystem.
The Central Bank of Nigeria (CBN) has reiterated its dedication to ensuring a transparent and resilient financial system through enhanced regulatory compliance and risk management practices among financial institutions in Nigeria. At a mandatory compliance and anti-money laundering (AML) training workshop organized in partnership with Citi in Lagos, Ms. Shola Phillips, Special Adviser to the CBN Governor, stressed the importance of adhering to global banking standards to preserve confidence in the financial sector.
Ms. Phillips articulated, “Regulators expect financial institutions to maintain dynamic, risk-based AML/CFT programmes that are responsive to the evolving financial environment. Proactive engagement with regulatory developments and the integration of innovative compliance solutions are essential for institutions to meet these expectations effectively.” The workshop aimed at improving the proficiency of compliance officers, trade operations specialists, and correspondent banking teams from various financial institutions by providing insights into global regulatory trends, emerging financial risks, and strategies for maintaining correspondent banking relationships.
Speaking at the event, Siobhan Ni Ealaithe, Managing Director of Citi’s Correspondent Banking Group, emphasized the significance of robust governance frameworks in mitigating financial risks. She underscored the importance of Know Your Customer (KYC), Know Your Business (KYB), and Know Your Transaction (KYT) protocols in averting illicit financial activities, thereby reinforcing the directive for stringent compliance within financial institutions.
Moreover, Stephanie Bailey, Head of EMEA AML Risk Management for Foreign Correspondent Banking, offered a sobering analysis of financial crime risks. She revealed that over $3 trillion in illicit funds navigate through the global financial system annually, urging institutions to enhance due diligence measures, embrace technology-driven risk assessments, and maintain transparency in all transactions. Such initiatives are pivotal to safeguarding the integrity of the financial sector.
This workshop corresponds with CBN Governor Olayemi Cardoso’s vision of ensuring regulatory excellence and fortifying Nigeria’s financial framework. Governor Cardoso has reiterated, “A strong financial system is built on trust, and trust is earned through integrity and compliance. The CBN will continue to set high regulatory standards to protect Nigeria’s financial ecosystem and ensure its alignment with global best practices.” By fostering a robust compliance culture and enhancing risk management frameworks, the CBN seeks to secure the Nigerian financial sector’s resilience and credibility on both national and international levels.
In conclusion, the Central Bank of Nigeria is taking significant steps to enhance regulatory oversight and compliance in the financial sector. Through initiatives such as training workshops and the reinforcement of global banking standards, the CBN is committed to mitigating financial risks and fostering a culture of transparency. The emphasis on robust governance frameworks and technology-driven solutions is essential for maintaining the integrity and trustworthiness of Nigeria’s financial system.
Original Source: thewhistler.ng
