CBN strengthens banking sector surveillance with new compliance department

The Central Bank of Nigeria (CBN) has established a dedicated Compliance Department as part of efforts to enhance regulatory oversight and strengthen surveillance across the banking and financial services sector.

This was disclosed in a letter referenced /DIR/PUB/CIR/001/002, dated September 4, 2025, addressed to all banks, payment service banks, and other financial institutions as defined under the BOFIA 2020.

The letter was signed by Olubunmi Ayodele-Oni for the director of the Compliance Department.

The CBN formally notified regulated institutions that the Compliance Department was established in the first quarter of 2025. Upon the commencement of operations in the second quarter, supervisory responsibility for non-prudential risk areas was officially reassigned to the department.

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According to the apex bank, the creation of this department is part of broader structural reforms aimed at consolidating regulatory effectiveness, clarifying institutional responsibilities, and strengthening oversight of non-prudential and emerging risks within the financial system.

The department has assumed oversight of financial crime supervision, including anti-money laundering, counter-financing of terrorism, counter-proliferation financing, and sanctions compliance. It is also responsible for market conduct supervision, covering disclosure practices, complaints management frameworks, and advertising standards. Additionally, the department oversees enterprise security supervision, including cybersecurity, data protection, and third-party risk management. Corporate governance and ESG supervision, including board effectiveness and environmental, social, and governance oversight, also fall under its purview.

The CBN directed that all regulatory reports, correspondence, and inquiries related to these areas should now be addressed to the Director, Compliance Department, through the established communication channels. Financial institutions will receive further details directly from the department regarding specific contact points and submission procedures.

The CBN expressed appreciation for the continued cooperation of all institutions in ensuring a smooth transition and in upholding the highest standards of compliance with applicable regulatory requirements.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.