In a circular addressed to banks, Payment Service Banks, and Other Financial Institutions (OFIs), the apex bank said the move is designed to streamline supervision and strengthen oversight of non-prudential risk areas across the financial system.
The letter, signed by Olubunmi Ayodele-Oni, Director of the Compliance Department, noted that the unit was formally established in the first quarter of 2025 and commenced operations in the second quarter. With its creation, oversight responsibilities in several critical areas have been consolidated under the department.
According to the CBN, the Compliance Department will now supervise:
- Financial Crime Supervision – covering anti-money laundering (AML), combating the financing of terrorism (CFT), counter-proliferation financing (CPF), and sanctions compliance.
- Market Conduct Supervision – including disclosure standards, complaints management systems, and advertising practices.
- Enterprise Security Supervision – focusing on cybersecurity, data protection, and third-party risk management.
- Corporate Governance and ESG Oversight – monitoring board effectiveness and environmental, social, and governance (ESG) frameworks.
The bank explained that the reform is part of broader efforts to “consolidate and embed regulatory effectiveness within existing supervisory frameworks, clarify institutional responsibilities, and maintain focused oversight of non-prudential and emerging risks.”
Henceforth, all regulatory reports and related inquiries in the listed areas are to be addressed directly to the Director of the Compliance Department through established communication channels. Financial institutions will also receive detailed guidance on designated contact points and submission procedures.
Reaffirming its commitment to collaboration, the CBN urged regulated entities to ensure a smooth transition, adding that their cooperation is crucial to upholding the highest standards of compliance and regulatory integrity.