CBN Deploys AI-Powered Surveillance to Track Money Laundering in Nigerian Banks
The Central Bank of Nigeria (CBN) has taken a major step to curb financial crime by mandating banks and financial institutions to adopt AI-powered anti-money laundering (AML) systems. The new directive, issued on March 10, 2026, requires deposit money banks, mobile money operators, payment service providers, and international money transfer companies to implement automated tools capable of detecting suspicious transactions in real time. This initiative is part of the CBN’s broader effort to modernize financial oversight in Nigeria’s increasingly digital economy.
Under the updated framework, all regulated institutions must integrate customer identification, transaction monitoring, sanctions screening, and risk assessment into a single automated platform. The central bank emphasized that these AI-enabled systems will strengthen compliance with AML, counter-terrorism financing (CFT), and counter-proliferation financing (CPF) laws. According to the CBN, traditional manual monitoring methods are no longer sufficient in a financial environment dominated by digital payments, fintech solutions, and mobile banking services.
The guidelines set clear timelines for implementation: deposit money banks are expected to achieve full compliance within 18 months, while other financial institutions have 24 months. Within three months, all institutions must submit a detailed roadmap outlining how they will integrate the required technology. Beyond technology deployment, the CBN mandates robust governance structures to validate AI models, protect customer data, and maintain detailed audit trails of all suspicious activity investigations.
A key highlight of the framework is the emphasis on advanced technologies such as artificial intelligence, machine learning, predictive analytics, and behavioural monitoring. These systems will continuously analyze transaction flows and customer behaviour to flag unusual patterns that may indicate financial crime. The CBN also requires seamless integration with core banking infrastructure and identity databases, ensuring real-time analysis and prompt reporting to authorities, including the Nigerian Financial Intelligence Unit (NFIU).
The central bank warned that non-compliance could attract regulatory penalties, and emphasized that these standards are the minimum baseline; institutions may be required to adopt stricter controls depending on their risk profile and transaction volumes. By embedding AI and automated monitoring into financial crime detection, the CBN aims to safeguard the integrity of Nigeria’s financial system, enhance transparency, and align the country’s banking sector with global AML standards.
source: The sun