By Rismadarvoice Media
December 31, 2025
Nigeria’s banking sector is preparing to adopt stricter anti-money laundering (AML) and know-your-customer (KYC) policies in response to tightening global compliance standards, aimed at curbing financial crimes and improving transparency across the industry.
The Central Bank of Nigeria (CBN) and other regulatory authorities have issued updated guidelines, requiring banks to enhance customer due diligence, improve transaction monitoring, implement more robust reporting systems.
The new measures are expected to affect both corporate and retail banking clients.
Industry experts say that banks will now need to verify the identity of clients more rigorously, monitor suspicious transactions in real time, and ensure compliance with international financial regulations, including those set by the Financial Action Task Force (FATF).
According to financial analysts, the updated AML and KYC frameworks are designed to prevent money laundering, terrorist financing, and other illicit activities, while also boosting investor confidence in Nigeria’s financial system.
Corporate clients may see more stringent documentation requirements for business accounts, while individual customers can expect enhanced verification procedures when opening new accounts or conducting large transactions. Some banks are already investing in digital solutions and biometric verification systems to streamline the process, while maintaining compliance.
The CBN has emphasized that while the measures may initially increase administrative processes, they are essential for aligning Nigeria’s banking sector with global best practices, ensuring long-term stability in the financial ecosystem.
Regulators have also pledged to provide training and support to banks, ensuring smooth implementation of the new policies, noting that failure to comply could result in fines, penalties, or restrictions on banking operations.
As Nigeria continues to integrate with global financial markets, stakeholders agree that these stricter AML and KYC standards are critical steps towards enhancing the integrity, security of the cxountry’s banking system.
