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CBN Exposure Draft on Baseline Standards for Automated AML Solutions

The Central Bank of Nigeria has released a draft document titled 'Baseline Standards for Automated Anti-Money Laundering (AML) Solutions' aimed at enhancing operational efficiency and regulatory compliance among financial institutions. The standards promote the adoption of technology-driven approaches to improve the detection and reporting of suspicious transactions while aligning with global best practices. Stakeholders are invited to provide feedback on the draft by June 13, 2025, to enrich the final version.

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24 views

CBN Exposure Draft on Baseline Standards for Automated AML Solutions

The Central Bank of Nigeria has released a draft document titled 'Baseline Standards for Automated Anti-Money Laundering (AML) Solutions' aimed at enhancing operational efficiency and regulatory compliance among financial institutions. The standards promote the adoption of technology-driven approaches to improve the detection and reporting of suspicious transactions while aligning with global best practices. Stakeholders are invited to provide feedback on the draft by June 13, 2025, to enrich the final version.

Uploaded by

Jewel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Central Bank of Nigeria

Banking Supervision
Department P.M.B. 12194
Tinubu Square.
Lagos.
Email: [email protected]
Website: www.cbn.gov.ng

Tel.....................................................................

BSDIDIRICON/AML1018/033 May 20, 2025

Letter to All Financial Institutions

EXPOSURE OF DRAFT BASELINE STANDARDS FOR


AUTOMATED ANTI-MONEY LAUNDERING (AML) SOLUTIONS:
REQUEST FOR COMMENTS
The Central Bank of.Nigeria (CBN) is committed to ensuring the integrity and stability
of the Nigerian banking system. In recognition of the high level of digitalization within
the financial system and rapid emergence of innovative products, the CBN has
developed a draft document titled "Baseline Standards for Automated Anti-Money
Laundering (AML) Solutions". The Standard is aimed at promoting operational
efficiency and regulatory compliance to AML/CFT/CPF requirements by financial
institutions in Nigeria. This standard is informed by a comprehensive assessment of
existing solutions within the industry. It aligns with global best practices and
international regulatory frameworks, including the recommendations of the Financial
Action Task Force (FATF).
The objectives of these standards include:

Strengthening the AML/CFT/CPF capabilities of financial institutions through


technology-driven approaches:

Encouraging the adoption of emerging technologies to enhance the detection and


reporting of suspicious transactions in real time;
Reducing operational inefficiencies associated with manual AML processes;

nSupporting compliance with evolving domestic and international regulatory


expectations.

The CBN hereby exposes the draft Baseline Standards for Automated
AML Solutions to all stakeholders and invites comments and suggestions to enrich the
final version.
All comments should be submitted to the Director of Banking Supervision via
the following email addresses on or before June 13, 2025:

n wajakaivecbn.gov.ng
[email protected]
 fkdaoducbn.gov .nq

The draft document is available for download on the CBN's official website:
www.cbn.gov.ng

We look forward to receiving your valuable feedback.


Yours faithfully,

Olubukola A. Akinwunmi, Ph.D.


Director of Banking Supervision
CENTRAL BANK OF NIGERIA

BASELINE STANDARDS FOR AUTOMATED ANTI-MONEY LAUNDERING


(AML) SOLUTIONS

1
Table of Contents
Preamble...................................................................................... 3
1..................................................................INTRODUCTION
.............................................................................................3
2.......................................................................OBJECTIVES
.............................................................................................3
3.................................................................................SCOPE
.............................................................................................4
4..................................................BASELINE STANDARDS
.............................................................................................5
4.1 AML Solutions...................................................................... 5
4.2 User Interface & Customization........................................ 5
4.3 System Integration & Scalability ........................................ 5
4.4 Sanction list & PEP Screening ........................................... 6
4.5 Transaction Monitoring & Risk-Based Analysis.................. 7
4.6 Customer Due Diligence (ODD), Know Your Customer
(KYC) & Know Your Customer's Business (KYB)........................7
4.8 Regulatory Reporting ......................................................... 8
4.9 Case Management................................................................9
4.10 Security & Data Protection................................................ 9
4.11 Enforcement & Compliance Monitoring............................ 9
5...............................................OTHER REQUIREMENTS
...........................................................................................10
6.......................IMPLEMENTATION AND COMPLIANCE
.......................................................................................... 10

2
PREAMBLE
In pursuant of the powers conferred on the Central Bank of Nigeria (CBN) by Section
2 (d) of the Central Bank of Nigeria Act, 2007; to promote a sound financial system in
Nigeria; the CBN hereby issues these Baseline Standards for Automated Anti-Money
Laundering (AML) Solutions.

The standards aim to ensure uniformity, efficiency, and regulatory compliance in AML
solutions across financial institutions in Nigeria.

1. INTRODUCTION
The fight against money laundering and terrorist financing is a critical priority for
financial systems worldwide. In Nigeria, the Central Bank of Nigeria (CBN) plays a
pivotal role in ensuring the stability and integrity of the financial system. As financial
transactions become increasingly digitized, the need for robust, automated AML
solutions has never been more urgent. These solutions leverage advanced
technologies such as artificial intelligence (Al), machine learning (ML), and big data
analytics to detect, prevent, and report suspicious activities in real-time.

The Baseline Standards for Automated AML Solutions is hereby issued to ensure
uniformity, efficiency, and compliance across financial institutions in Nigeria. These
standards are based on findings from an assessment of AML solutions in the industry.
The standards also incorporate global best practices and align with international
regulatory frameworks, such as the Financial Action Task Force (FATF)
recommendations.

The adoption of these standards will enable financial institutions to enhance their
AML/CFT/CPF capabilities, reduce operational inefficiencies, and comply with
evolving regulatory requirements. By implementing these standards, the Nigerian
financial sector will be better equipped to combat money laundering and terrorist
financing, thereby safeguarding the integrity of the financial system.

2. OBJECTIVES The primary objectives of these baseline standards


are to:

1. Ensure Effective Implementation of Automated AML Solutions:


Provide a framework for the deployment and operation of automated AML
solutions that meet regulatory requirements and industry best practices.

2. Promote Interoperability and Integration: Facilitate seamless


integration of AML systems with other financial systems to ensure efficient data
sharing and compliance reporting.

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