Central Bank of Nigeria (CBN) has said penalties totaling N15 billion were imposed on 29 banks for violations of Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations.

This was disclosed by Olayemi Cardoso, CBN governor, during the 2024 Bankers’ Night organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.

In his remarks, Cardoso stressed the gravity of these violations and stressed the need for the affected banks to address the systemic weaknesses that allowed such lapses to occur.

“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,” Cardoso stated.

The Broader Implications of Compliance

The CBN governor highlighted the broader impact of compliance on the financial ecosystem, noting that institutions that prioritise regulatory adherence contribute to national growth and stability.

“A bank that prioritises 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,” he added.

Cardoso also pointed out that the consequences of non-compliance extend beyond regulatory penalties. According to him, issues such as money laundering, fraud, and corruption undermine the foundation of the financial system.

“The cost of inaction is profound—fraud undermines confidence, corruption erodes trust, and money laundering perpetuates organized crime,” he remarked.

The governor articulated a vision for a robust compliance culture across Nigeria’s banking industry. He emphasised that financial institutions must not only comply with regulatory standards but also adopt a proactive approach to identifying and mitigating risks.

Cardoso explained that executives and boards must lead by example by making compliance a strategic priority and championing zero tolerance for breaches—not just in policy but in practice. He urged financial institutions to anticipate vulnerabilities and address risks in high-risk areas proactively.

He also called for the education of staff to recognise red flags and report concerns about fraud, money laundering, or unethical behavior, ensuring they are protected when they do so.

Additionally, he stressed the importance of conducting enhanced due diligence for high-risk clients, politically exposed persons, and vendors to prevent illicit funds from flowing through financial institutions.

The governor emphasised the need for industry-wide collaboration to combat systemic threats. This includes sharing intelligence on emerging risks, cooperating with law enforcement agencies, and maintaining open communication with regulators.

Cardoso acknowledged the challenges facing the sector, from cybersecurity threats to disparities in financial inclusion. However, he expressed optimism that with strengthened compliance frameworks, the Nigerian banking industry could address these challenges effectively.

Reflecting on the broader implications, he said, “Compliance is not just a regulatory requirement; it is central to our mission of fostering trust and integrity within the financial system. Together, we can build an industry that not only meets but exceeds global standards.”

Credit: Business Day

Julius Arhebun, the Head of Agency Banking a Nigeria’s leading payment service bank, MoneyMaster, has disclosed that the promotion of financial inclusion is one of the core mandates of the service.

He said this recently as the bank introduced a new 100MB data offer for every transaction made in the offer, which is available for Glo customers using the bank’s USSD banking code, *995#. The initiative is meant to incentivize the unbanked and underbanked population to ease the creation of their own mobile wallet via its USSD banking platform.

According to him, the offer builds on the various financial education “we have been providing online and across our various customer touchpoints”.

He added that “with this new 100MB offer, we want to encourage Nigerians in the unbanked and underbanked pools to be financially included by having at least a mobile wallet. The account number of this mobile wallet is derived from their mobile number, and can be easily recalled”.

MoneyMaster PSB is a leading provider of innovative digital financial products and services that transform lives and contribute to sustainable living.

The PSB has the   mission to deepen financial inclusion and has been instrumental in providing financial technology services to bridge the gap between the banked, underbanked and unbanked population.

The payment service bank recently unveiled a 10 percent data bonus for existing and new customers who are on the Glo network for recharges of N1000 or more. The offer has been adjudged one of the best in the country based on the volume of data on offer to customers. The data purchases have a 30-day validity while unused data can be rolled over upon next plan subscription.

As part of President Bola Ahmed Tinubu’s state visit to France, the Chairman of UBA Group, Tony Elumelu in the presence of President Tinubu and the President of France, Emmanuel Macron, signed a landmark business cooperation agreement with the French Finance Minister, Antoine Armand.

The agreement is a significant indication of support by the French Government for the development of UBA’s full banking operations in France.

Speaking at the signing ceremony, Tony Elumelu, the Chairman of UBA Group commented:
”This partnership reinforces our commitment to seamless international banking services for our customers, not just across the 11 Francophone African countries we serve, but Africa as a whole; and French and European customers transacting with Africa.

Expanding into France is a natural progression, with Paris serving as our European Union hub, as we continue to bring Africa and the world together, through innovative financial solutions. Paris will join London, New York and Dubai, as a critical component of our unique global network.”

United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group wide and serving over 45 million customers globally.

Operating in twenty African countries and the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology.