Nigeria’s anti-money laundering and combating the financing of terrorism (AML/CFT) framework has been transformed in recent weeks, as a raft of new legislation, along with fresh guidance from the country’s central bank, has shaken up the decade-old system of existing rules. For Nigerian financial institutions, these changes will have profound implications, as the costs and complexity of operating in Africa’s largest economy both increase.
On May 12, 2022, Nigerian president Muhammadu Buhari signed into law three separate acts designed to tackle money laundering and terrorist financing. These included the Money Laundering (Prevention and Prohibition) Act, the Terrorism (Prevention and Prohibition) Act and the Proceeds of Crime (Recovery and Management) Act. The Money Laundering Act will have the most far-reaching consequences for financial services firms, as it replaces earlier legislation first published in 2011.
