CBN Orders Banks, Fintechs to Disclose Beneficial Owners

The Central Bank of Nigeria (CBN) has directed banks, fintech companies, and other financial service providers to fully disclose their ultimate beneficial owners as part of strengthened regulatory compliance measures in the financial sector.

The directive is aimed at improving transparency within Nigeria’s financial system and strengthening the fight against money laundering, terrorism financing, and other financial crimes.

Under the new requirement, financial institutions are expected to provide detailed information on individuals who ultimately own or control accounts, companies, or transactions processed through their platforms.

The move is part of ongoing efforts by the apex bank to align Nigeria’s financial system with global anti-money laundering and counter-terrorism financing standards.

Industry stakeholders say the directive could increase compliance obligations for fintech operators and digital payment platforms, which have experienced rapid growth in recent years.

Banks and payment service providers are expected to update their internal Know-Your-Customer (KYC) and due diligence frameworks to comply with the new requirements.

The CBN has continued to introduce reforms in the financial sector aimed at strengthening oversight, improving transparency, and reducing risks associated with illicit financial flows.

As of press time, further operational guidelines on implementation are expected from the apex bank.