AML & KYC in Nigeria
Understanding compliance requirements and customer verification frameworks for Nigerian financial institutions.
What are AML and KYC?
AML (Anti-Money Laundering) and KYC (Know Your Customer) are regulatory frameworks used by Nigerian financial institutions to prevent financial crime. AML focuses on detecting and reporting suspicious activity, while KYC ensures banks understand who their customers are and the risk they represent. Together, they form the foundation of CBN compliance.
AML vs KYC: Key Differences
AML
Focuses on detecting, preventing, and reporting money laundering activity. Includes transaction monitoring, alert review, case management, and STR/CTR filing.
Key obligation: File STRs with NFIU within required timeframes
KYC
Focuses on verifying customer identity and assessing risk during onboarding and on an ongoing basis. Includes CDD, EDD, and PEP screening.
Key obligation: BVN verification and ongoing customer risk review
Key AML & KYC Terms Explained
Use this glossary alongside the Nigeria Financial System Glossary for a full reference.
Frequently Asked Questions
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