The CBN has launched a fully operational Compliance Department to centralize oversight of non-prudential and emerging risks—including financial crimes, market conduct, cybersecurity, and ESG—requiring all regulated institutions to channel related communications through the department.
The Central Bank of Nigeria (CBN) has formally established a dedicated Compliance Department to enhance regulatory oversight and streamline supervisory responsibilities across the financial sector. The department was created in the first quarter of 2025 and became fully operational in the second quarter of the year.
The move is part of a broader structural reform designed to consolidate oversight functions, clarify institutional roles, and ensure focused supervision of emerging and non-prudential risks. The department will now oversee financial crime supervision (including AML, CFT, CPF, and sanctions compliance), market conduct supervision (such as disclosure practices, complaints management, and advertising standards), enterprise security supervision (cybersecurity, data protection, third-party risk), and corporate governance and ESG supervision (board effectiveness and ESG oversight).
The CBN has instructed all regulated financial institutions to direct future reports, correspondence, and inquiries regarding these areas to the Director of the Compliance Department via the established communication channels. Institutions will receive further guidance on points of contact and submission procedures directly from the department.
“The establishment of the Compliance Department is a strategic move to embed regulatory discipline and ensure robust oversight of non-prudential risks,” the circular stated. The CBN reaffirmed its commitment to working collaboratively with financial institutions to ensure a smooth transition and uphold the highest standards of regulatory compliance.