CBN Sets September 2027 Deadline for Banks to Automate Anti-Money Laundering Systems

The Central Bank of Nigeria (CBN) has directed Deposit Money Banks (DMBs) to fully implement automated Anti-Money Laundering (AML) solutions by September 2027, as part of efforts to strengthen financial crime monitoring and regulatory compliance across the banking sector.

Under the new regulatory framework, Other Financial Institutions (OFIs) have until March 2028 to achieve full compliance, giving them an additional six months to deploy the required systems.

The directive is contained in the CBN’s Baseline Standards for Automated Anti-Money Laundering Solutions, issued on 10 March 2026. It applies to banks, mobile money operators, international money transfer operators, payment service providers and other financial institutions under the apex bank’s regulatory supervision.

The standards are designed to improve the detection, analysis and reporting of suspicious financial transactions in real or near-real time, while strengthening measures to combat money laundering, terrorist financing and proliferation financing.

The CBN said implementation began from the date of issuance, requiring affected institutions to submit detailed implementation roadmaps to its Compliance Department within three months. The deadline for submitting the roadmaps was 10 June 2026.

The automated systems are expected to strengthen transaction monitoring and financial crime risk management, reducing reliance on manual processes that may limit the timely identification of suspicious activities.

The requirements also place greater emphasis on institutions’ ability to demonstrate effective compliance, supported by appropriate technology, internal controls and regulatory reporting procedures.

The phased deadlines provide Deposit Money Banks with 18 months and Other Financial Institutions with 24 months from the date of issuance to meet the standards.

Financial institutions that fail to comply could face regulatory directives, administrative sanctions and penalties under applicable laws and regulations.

The development marks a further step in the CBN’s efforts to strengthen Nigeria’s financial system against illicit financial flows and align financial institutions with evolving international standards on financial crime prevention.