CBN Tightens Grip On Financial Firms, Targets Hidden Owners

CBN Tightens Grip On Financial Firms, Targets Hidden Owners

The Central Bank of Nigeria has directed banks, fintech companies and other payment service providers to reveal their ultimate beneficial owners as part of efforts to strengthen transparency in the financial sector.

The directive affects institutions operating across the country and forms part of measures to improve oversight of financial activities.

The apex bank said the requirement is aimed at identifying the individuals who ultimately own or control financial institutions, even when such ownership is hidden behind layers of companies or other arrangements.

The move is intended to reduce risks linked to money laundering, terrorism financing and other illicit financial activities.

Under the new directive, affected institutions must provide accurate and up-to-date information on their beneficial owners and ensure such records remain available for regulatory review.

The CBN believes greater transparency in ownership structures will improve accountability and help regulators monitor the financial system more effectively.

The latest order reflects ongoing efforts by the regulator to align Nigeria’s financial sector with global standards on corporate governance and financial transparency.

Industry players are expected to comply with the directive as the CBN continues to tighten oversight of banks, fintechs and other payment service providers.