The Central Bank of Nigeria has announced the creation of a dedicated Compliance Department, a move designed to strengthen regulatory oversight and streamline supervisory functions.

In a circular signed by Olubunmi Ayodele-Oni, the apex bank disclosed that the department was set up in the first quarter of 2025 and assumed full operational responsibilities in the second quarter.

The initiative forms part of wider structural reforms aimed at consolidating oversight, clarifying institutional mandates, and ensuring targeted supervision of non-prudential and emerging risks.

The newly established Compliance Department will oversee four core supervisory areas:

Financial Crime Supervision — covering Anti-Money Laundering, Counter Financing of Terrorism, Counter-Proliferation Financing, and sanctions compliance.

Market Conduct Supervision — focused on disclosure standards, complaints resolution, and advertising practices.

Enterprise Security Supervision — addressing cybersecurity, data protection, and third-party risk oversight.

Corporate Governance and ESG Supervision — monitoring board effectiveness and adherence to environmental, social, and governance principles.

The CBN has instructed all regulated financial institutions to route future reports, correspondence, and inquiries on these matters to the Director of the Compliance Department, using the bank’s established communication channels.

“The establishment of the Compliance Department is a strategic move to embed regulatory discipline and ensure robust oversight of non-prudential risks,” the circular stated.

The CBN reiterated its commitment to working closely with financial institutions to ensure a seamless transition while maintaining the highest standards of regulatory compliance.

In July, the Central Bank of Nigeria warned of a sharp increase in financial fraud, reporting a 45 per cent surge within one year.

According to the apex bank, 70 per cent of the losses were linked to digital channels, especially unregulated virtual asset platforms.

CBN Governor Olayemi Cardoso disclosed this in a speech delivered on his behalf by Deputy Governor for Economic Policy, Muhammad Sani Abdullahi, at a public lecture hosted by the Economic and Financial Crimes Commission.

The CBN recently directed all participants in Nigeria’s payment ecosystem to complete migration to the ISO 20022 messaging standard and enforce mandatory geo-tagging of payment terminals by October 31, 2025.