The Central Bank of Nigeria (CBN) has unleashed a new era of financial surveillance, ordering all banks and financial institutions to deploy artificial intelligence-powered systems capable of tracking suspicious transactions in real time.
In a sweeping circular issued on March 10, 2026, the apex bank mandated that deposit money banks, mobile money operators, payment service providers, and international money transfer operators implement automated anti-money laundering (AML) solutions.
The directive represents one of the most aggressive regulatory pushes to digitize financial crime detection in Nigeria's rapidly expanding fintech ecosystem.
According to the circular jointly signed by the Director of Banking Supervision, Akinwunmi A. Olubukola, and Olubunmi Ayodele-Oni (acting for the Director of the Compliance Department), the new framework establishes baseline standards for deploying advanced monitoring tools.
It stated: "The baseline standards provide a framework for implementing automated solutions that strengthen the detection and reporting of suspicious transactions in real time and enhance compliance with applicable AML/CFT/CPF laws and regulations, while also supporting the use of emerging technologies to improve overall financial crime risk management."
Under the new regime, financial institutions must deploy integrated platforms that combine customer identification systems, transaction monitoring, sanctions screening, and risk assessment tools.
The emphasis is on cutting-edge technologies including artificial intelligence, machine learning, predictive analytics, and behavioural monitoring to identify unusual financial patterns that may indicate criminal activity.
The CBN explained that traditional manual monitoring processes are increasingly inadequate in an environment dominated by digital payments, fintech platforms, and mobile banking.
Automated surveillance will enable institutions to identify potential financial crimes earlier and report suspicious transactions promptly to authorities such as the CBN and the Nigerian Financial Intelligence Unit (NFIU).
Institutions have been given specific timelines to implement the required technology infrastructure.
Deposit money banks must achieve full compliance within 18 months, while other financial institutions have 24 months to meet the regulatory requirements.
Additionally, all institutions are required to submit detailed implementation roadmaps within three months of the circular's issuance.
The guidelines require institutions to maintain detailed audit trails and case management systems that document investigations into suspicious financial activity and track regulatory reporting obligations.
Governance structures must also be established to oversee automated system performance, validate artificial intelligence models, and ensure compliance with Nigeria's data protection regulations.
The central bank warned that institutions failing to comply with the new standards or operating ineffective AML frameworks could face regulatory penalties.
Compliance will be monitored through off-site surveillance, on-site examinations, and targeted thematic reviews conducted by the banking regulator.
With Nigeria's financial sector expanding rapidly through digital banking and cross-border payment platforms, regulators say the new framework signals a broader push to protect the integrity of the country's financial system.
By embedding artificial intelligence into financial crime detection, the CBN aims to close regulatory gaps, strengthen financial transparency, and improve Nigeria's compliance with global anti-money laundering standards.
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