Nigeria is strengthening its Anti-Money Laundering (AML), Counter-Terrorist Financing (CFT) and Counter-Proliferation Financing (CPF) framework ahead of its 2027 FATF mutual evaluation.
Nigeria’s exit from the FATF grey list in October 2025 was an important milestone, but effective enforcement and compliance remain critical.
The Economic and Financial Crimes Commission (EFCC) is Nigeria’s principal agency for investigating and prosecuting economic and financial crimes.
Its AML-related functions include:
- Investigating money laundering and financial crimes.
- Tracing and recovering proceeds of crime.
- Prosecuting offenders.
- Freezing or recovering assets through legal processes.
- Working with local and international enforcement agencies.
- Supervising designated non-financial businesses and professions through SCUML.
The proposed EFCC (Establishment) Amendment Bill, 2025 seeks to expand the Commission’s powers to cover areas such as terrorism financing, proliferation financing, cybercrime, digital assets and other financial offences.
Important: The proposed amendments are not yet law and should not be treated as current statutory obligations.
What Should Nigerian Businesses Do?
Businesses should not wait for a regulatory investigation before reviewing their AML systems.
Key steps include:
Identify your regulatory obligations.
Maintain accurate ownership and customer records.
Implement appropriate KYC/AML procedures.
Monitor unusual transactions.
Screen high-risk customers and transactions.
Train employees on AML red flags.
Maintain proper records.
Regularly review and test your compliance programme.
Why AML Compliance Matters
AML compliance is no longer just a regulatory requirement. Weak controls can expose businesses to fines, investigations, asset recovery, reputational damage and regulatory action.
As Nigeria prepares for its next FATF evaluation, businesses should ensure their AML systems are practical, documented and fit for purpose.
Need help with AML and regulatory compliance in Nigeria?
At eLegal Consultants, we help businesses understand their regulatory obligations and develop practical legal and compliance systems.
Contact us for a compliance review and legal support.
