The Central Bank of Nigeria (CBN) has directed all regulated financial institutions to route their regulatory reports, correspondence, and inquiries related to compliance through the newly established Compliance Department.
In a circular issued on Thursday, addressed to banks, Payment Service Banks (PSBs) and other Other Financial Institutions (OFIs), the apex bank said the move was part of ongoing structural reforms aimed at improving regulatory efficiency and clarity within the financial sector.
The letter, signed by Olubunmi Ayodele-Oni, Director of the Compliance Department, stated that the department was officially established in the first quarter of 2025 and commenced full operations in Q2 2025.
Scope of Oversight Expands to Non-Prudential and Emerging Risks
According to the circular, the Compliance Department has now taken over oversight of non-prudential risk areas, which include:
- Financial Crime Supervision
(Anti-Money Laundering, Counter Financing of Terrorism, Counter-Proliferation Financing, and sanctions compliance) - Market Conduct Supervision
(Disclosure standards, complaints management, and advertising practices) - Enterprise Security Supervision
(Cybersecurity, data protection, and third-party risk governance) - Corporate Governance and ESG Supervision
(Board performance, corporate ethics, and Environmental, Social, and Governance oversight)
The CBN said this reorganisation is designed to consolidate regulatory oversight, define institutional responsibilities, and maintain focused supervision over evolving risks in the financial ecosystem.
New Contact Points for Submissions Coming Soon
The circular also noted that financial institutions would soon receive detailed instructions on their designated points of contact and specific submission procedures within the new department.
“All regulatory reports, correspondence, and related inquiries concerning these matters should now be directed to the Director, Compliance Department, via the established communication channels,” the letter stated.
The apex bank further expressed appreciation for stakeholders’ cooperation and assured institutions of a smooth transition as the reforms are implemented.
“The CBN looks forward to continued cooperation from all institutions in ensuring a smooth transition and in upholding the highest standards of compliance with applicable regulatory requirements,” it said.
About the Author
