The Central Bank of Nigeria has strengthened its supervisory oversight of terrorism financing risks within the financial sector as part of efforts to prevent financial institutions from being exploited by illicit actors.

The apex bank disclosed this in a press statement issued on Tuesday and signed by its Acting Director of Corporate Communications and Investor Relations, Hakama Sidi-Ali.

The CBN said it had elevated terrorism financing supervision to a current supervisory priority, reflecting increased efforts to identify and mitigate risks associated with the misuse of the financial system.

“The Central Bank of Nigeria (CBN) has elevated terrorism financing supervision to a current supervisory priority, as part of its ongoing commitment to protecting the Nigerian financial system from abuse by illicit actors,” the statement said.

The CBN said its supervisory focus would cover four key areas, including terrorism financing risk management and transaction monitoring.

The other areas are the implementation of targeted financial sanctions and the reporting of suspicious transactions linked to terrorism financing.

The regulator said the announcement means these areas will receive increased attention as it oversees financial institutions in line with existing legal and regulatory requirements.

The CBN added that it would continue to adopt a risk-based supervisory approach, combining both on-site examinations and off-site monitoring.

“The Bank will continue to apply a risk-based supervisory approach, including on-site and off-site engagement, to support effective AML/CFT/CPF controls across the financial sector in line with existing legal and regulatory obligations,” the statement said.

AML/CFT/CPF refers to anti-money laundering, countering the financing of terrorism, and countering proliferation financing.

The CBN said the heightened supervisory focus also supports Nigeria’s domestic and international efforts to combat terrorism financing and proliferation financing, strengthen financial integrity, and safeguard the country’s financial system.