LAGOS, Mar 13 – Nigeria’s Central Bank (CBN) has formally included artificial intelligence (AI) and machine learning in its anti-money laundering (AML) framework, directing banks, fintechs, and payment service providers to implement automated compliance systems.
The circular, issued on March 10, 2026, sets the first explicit AI-based standards for financial crime detection in the country.
Deposit money banks have 18 months to comply, while other institutions have 24 months. Financial firms must submit implementation roadmaps within three months and integrate AML platforms with core banking, customer onboarding, and transaction systems.
The guidelines require risk-based customer due diligence, transaction monitoring, sanctions screening, case management, and fraud detection. AI tools such as anomaly detection, behavioural pattern recognition, and predictive analytics are encouraged, but must be governed with annual independent validation to ensure fairness, transparency, and accuracy.
The directive also promotes unified monitoring of fraud and money laundering to detect links across suspicious activities. Transactions must be assessed within full customer profiles rather than raw data alone.
The move follows Nigeria’s removal from the Financial Action Task Force grey list in 2025 and aligns with global AML standards. It comes as digital financial activity grows, and fraud surges. In the first quarter of 2025, fraud losses jumped 603% to ₦3.29 billion ($2.27 million) with 12,347 cases reported.
The CBN emphasised that AI systems must maintain human oversight to ensure trust and accountability while strengthening the financial sector’s integrity.
