The Central Bank of Nigeria, CBN, has fashioned a structural reform as part of its wider efforts at consolidating and fix firmly regulatory effectiveness within existing supervisory frameworks.
The reform will also clarify institutional responsibilities, and maintain focused oversight of non-prudential and emerging risks.
Against this backdrop, the apex bank has directed financial institutions to submit all regulatory reports, correspondence, and related inquiries to its Director, Compliance Department through the established communication channels.
The directive was contained in a letter to all banks, Payment Service Banks and other Financial Institutions (OFIs) issued on Thursday.
The letter signed by the Director Compliance Department, CBN, Olubunmi Ayodele-Oni, read in part : “The CBN hereby formally notifies all regulated institutions that the Compliance Department was established in Q1 2025.
The circular stated that when the compliance departnment commenced operations in Q2 2025, responsibility for the oversight of non-prudential risk areas was formally reassigned to the Department.
Sequel to this, “The Department has assumed responsibility for the following areas:Financial Crime Supervision (including AML/CFT/CPF and sanctions compliance).
Market Conduct Supervision (including disclosure practices, complaints management frameworks, and advertising standards).
Other responsibilities of the department include-“Enterprise Security Supervision (including cybersecurity, data protection, and third-party risk management).
“Corporate Governance and ESG Supervision (including board effectiveness and ESG oversight).
The letter further stated:“Henceforth, all regulatory reports, correspondence, and related inquiries concerning these matters should be directed to the Director, Compliance Department through the established communication channels.
“Financial institutions will receive direct communication from the Department regarding specific points of contact and submission procedures.
It concludes “The CBN looks forward to continued cooperation from all institutions in ensuring a smooth transition and in upholding the highest standards of compliance with applicable regulatory requirements.”