CBN Sets 12-Month Deadline for AI-Driven AML Compliance

The Central Bank of Nigeria (CBN) has released a draft framework aimed at strengthening anti-money laundering (AML) measures within the financial sector. Dated May 20, 2025, the framework mandates financial institutions to implement advanced AML solutions driven by artificial intelligence and machine learning for improved accuracy and compliance.

Institutions, including deposit money banks, microfinance banks, mortgage banks, and digital payment service providers, must adopt intelligent systems capable of real-time transaction monitoring, anomaly detection, and behavioral pattern analysis. These platforms must integrate with Bank Verification Number (BVN) and National Identification Number (NIN) databases to enhance customer due diligence.

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The CBN will oversee compliance through inspections and validation exercises, with penalties for non-adherence. Financial institutions have twelve months from the final issuance of the framework to implement the required changes.

Stakeholders have until June 13, 2025, to submit feedback before the framework is finalized. This initiative aligns Nigeria’s financial system with international AML standards and aims to curb illicit activities.