Nigeria’s Central Bank has ordered banks and other financial institutions to deploy automated anti-money laundering (AML) systems and submit implementation roadmaps within 90 days of a new circular issued on March 10, media outlet Condia reported.
Banks have 18 months to fully deploy automated AML solutions, while other institutions have 24 months. All must file a detailed rollout plan with the Central Bank within three months, setting the first deadline around June.
The rules target rising digital transaction volumes and aim to tighten monitoring of suspicious activity across the financial system.
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Banks Get 18 Months, Fintechs 24 Months
The directive covers deposit money banks, payment service providers, mobile money operators, international money transfer operators, and other regulated firms.
The Central Bank of Nigeria (CBN) now requires banks and fintechs to deploy automated anti-money laundering (AML) systems to detect suspicious transactions at scale.
— Condia (formerly, Bendada.com) (@thecondia) March 16, 2026
Institutions have 90 days to submit a roadmap.
Here’s what the new rule means for the industry:… pic.twitter.com/k21zPCuGQu
Nigeria’s central lender has gone further than most regulators by not only insisting on automated AML systems, but also writing artificial intelligence directly into its rulebook as a core tool for monitoring financial crime.
Unlike other regimes that treat AI as an optional upgrade, the CBN’s standards explicitly allow banks and fintech firms to use AI and machine learning in their AML frameworks.
It mandates annual independent testing of models for accuracy and bias, and then tie those expectations to fixed deployment timelines and a 90 day deadline for implementation roadmaps.
AI Allowed, Manual Monitoring Unsustainable
The required systems must connect to customer identity data, income information, risk profiles, and sanctions screening tools. Institutions must use these to monitor transactions against expected behavior, support Know-Your-Customer and Know-Your-Business checks, run investigations, and generate regulatory reports automatically.
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The Central Bank says manual monitoring no longer suits a market that processes millions of digital payments daily.
The framework permits the use of artificial intelligence and machine learning in compliance, but it requires independent annual testing of models for accuracy, bias, and performance drift. Supervision will include on-site examinations and off-site reviews of how institutions use the new systems.
Fintech firms in Nigeria do not sit under a single statute; instead they fall under a mix of laws and guidelines depending on activity, with the CBN as the primary supervisor for payments, mobile money, switching, and related services.
Meanwhile, the CBN operates a tiered licensing framework for payment service providers and mobile money operators, alongside open banking rules, a regulatory sandbox, and minimum capital and escrow requirements for various license categories.
Comparing with Kenya and South Africa
Compared to other jurisdiction in Africa, Nigeria is taking a more hard‑line, tech‑specific approach. Kenya, for instance, requires strong KYC and reporting but does not yet force every fintech or bank to adopt automated or AI‑based monitoring on a national timetable. Tools and timelines follow a general risk‑based approach instead.
Read more: Kenya’s CMA Widens Regulatory Net With Robo-Advisory Permits
Elsewhere, South Africa’s AML rules focus on outcomes: firms must show they understand their risks, know their customers, and report suspicious activity. Supervisors then use inspections and penalties to enforce this.
However, they do not currently tell all banks and fintech firms to implement automated or AI‑driven AML systems by the same fixed dates as Nigeria.
