PRIORITISE GOVERNANCE OVER ACCOUNT OPENINGS, CBN TELLS BANKS

The Central Bank of Nigeria (CBN) has directed commercial banks to prioritise robust corporate governance and risk management practices over aggressive account opening drives.

The apex bank issued the directive amid concerns over rising cases of fraud, money laundering, and compliance breaches linked to rushed customer onboarding processes. CBN Governor emphasised that while financial inclusion remains a key objective, it must not compromise the integrity of the banking system.

Banks have been urged to strengthen Know Your Customer (KYC) procedures, enhance internal controls, and ensure strict adherence to anti-money laundering (AML) and counter-terrorism financing regulations. The CBN warned that institutions found wanting in governance standards would face stringent sanctions, including hefty fines and restrictions on operations.

Stakeholders welcomed the move, noting that sound governance is critical for sustaining public confidence and safeguarding the financial sector. The directive is expected to promote responsible banking practices while supporting sustainable growth in the industry.

Analysts believe this policy will help reduce systemic risks and align Nigeria’s banking sector with global best practices.