The recent anti-money laundering (AML) regulations introduced by the Central Bank of Nigeria (CBN) are compelling financial institutions to implement automated compliance systems, while technology companies are already preparing to fulfil the requirements by the deadline.
Smartcomply, a technology firm specialising in compliance and cybersecurity, announced on Tuesday that its AI-driven Adhere platform has already fulfilled the baseline standards established by the regulator earlier this month.
The central bank released a circular on March 10 mandating that banks, mobile money operators, and other regulated entities implement automated AML solutions within a timeframe of 18 to 24 months. Additionally, firms are required to submit their implementation plans within three months.
This initiative indicates a shift by the regulator towards enhancing oversight and mitigating financial crime risks within Nigeria’s banking sector, particularly as digital transactions continue to expand.
Gbemisola Osunrinde, the chief executive of Smartcomply, stated that the company developed its platform to meet the compliance requirements that are currently being enforced.
“Adhere was created for transaction monitoring, customer verification, and regulatory reporting in accordance with African regulatory standards,” she stated.
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The platform is designed to integrate with national identity systems such as the Bank Verification Number (BVN) and National Identification Number (NIN), and it features automated customer checks, sanctions screening, and fraud detection capabilities.
Industry analysts suggest that the new regulations may lead to substantial investments in compliance technology, as institutions transition from manual processes that are slower and more susceptible to errors.
The requirements encompass critical areas such as transaction monitoring, customer due diligence, risk profiling, case management, and regulatory reporting, all of which must now be automated.
The Central Bank’s directive arrives as regulators worldwide intensify pressure on financial institutions to enhance AML controls, particularly in rapidly growing digital economies.
For Nigeria, the largest economy in Africa, these new regulations could transform how banks handle compliance, while simultaneously creating opportunities for local technology providers that offer specialised solutions.
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