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4 Challenges Your Bank Must Overcome to Effectively Combat Financial Crime

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financial crime

One frightening reality that bank executives may have a hard time accepting is that, with the advent of technology, their institutions are becoming increasingly vulnerable to financial crime.

It isn’t just an issue of money launderers, terrorist backers, and other malicious agents running rife in these times of economic precarity. Such actors are also getting even better at their game, and the structural defenses that banks may have used against them in the past are no longer sufficient. When all that is added to the general difficulty of modernizing a bank’s anti-money laundering (AML) system and meeting the demands of its AML regulators, protecting an institution against financial crime seems like a weighty task indeed.

But on the issue of keeping your bank’s assets safe from the taint of criminal activity, there’s no way to go but up. With every year that passes, your bank should be able to strengthen its AML compliance, case management, and transaction monitoring processes. The goal is to evolve faster than criminal agents’ methods and to make sure that your data and monetary assets remain safely out of their reach.

Below are four challenges that you should overcome to be at an advantage when combating financial crime. Address these issues now and avoid the risk of being permanently compromised by criminal activity.

The Limitations of Your Current AML and Financial Crime Compliance Management Systems

You may not realize it, but one of your biggest obstacles to forming a full response to financial crime is your legacy AML compliance system.

If it’s been a long time since you updated your bank’s tech stack for AML functions, your institution is particularly vulnerable to threats. Savvy criminals can take full advantage of slow, siloed-off, delay-ridden, and case-congested AML structures. Indeed, these malicious individuals can wreak significant damage to a bank by exploiting an outdated system’s weaknesses.

If you want a fighting chance against financial crime, it’s in your best interest to upgrade to a consolidated AML solution that runs on the cloud. Having an overarching platform for AML will get your bank up to speed in terms of real-time transaction analytics, visibility over your customer enrollments, and coordination among stakeholders in your AML investigations. Upgrade as soon as possible so that there’s little legroom for financial criminals to move around in.

Increasingly Complex Schemes from Money Laundering Networks

The second challenge that you must address is your understanding of how money laundering networks and other criminal rings currently operate.

Too many banking execs still envision financial crime to play out just like it does on TV: in an obvious and predictable manner. But in truth, most criminals have adapted their methods to be even more sophisticated and undetectable to the naked eye. Over the years, they have become even better at covering their tracks and disguising their movements to look like those of legitimate customers.

An institution cannot be too complacent about keeping up with criminal trends and connecting its systems to the news, international watchlists, sanction lists, and lists of politically exposed persons (PEPs). You and your team should stay on your toes and pay careful attention to any anomalies that occur in your system—not only for individuals but also for patterns or webs of suspicious customer behaviour.

Inefficient Approaches to AML Case Management

A third issue that may stand in the way of nipping criminal activity in the bud is your bank’s piecemeal approach to AML case management and investigation work.

If your bank relies on a case management method of simply segregating the false positives from cases of legitimate concern, it could spell your financial institution’s doom. In the long time that it takes to review individual cases and flag them one by one, you may have already been significantly compromised by the false negatives.

Because of this, make it a point to rethink your AML case management strategy to be quicker, less overwhelmed by congestion, and more efficient with your investigators’ attention. Again, there’s value in employing a pattern-based crime detection system and training your staff to look at both cases of concern and webs of suspicious activity, as certain cases in these groups may ultimately be related. This approach will also help investigators zero in on cases of alarm and resolve them with greater speed and accuracy.

Deficiencies in the Audit and Compliance Trail

It’s never easy to keep a paper trail for AML audits and other efforts toward full financial crime compliance. That said, it’s housekeeping work that banks urgently need to do. Without organized and updated systems for tracking AML governance and transparency, a bank will stay in the dark about just how effective its AML system has been over the years. Needless to say, it may falter when it’s time to submit to its regulators—or, worse yet, when actual criminals come knocking.

Your bank shouldn’t be remiss in compiling its documentation work and keeping financial crime compliance reports. Be up to date about the performance of your AML system and which aspects of it require technological or operational improvement.

Bolstering Your Bank’s Defenses Against Threats of Financial Crime

Steering clear of financial crime shouldn’t be a matter of luck for your bank. You must be purposeful in your efforts to strengthen its defense against criminals and its compliance record with your regulators. Even if you don’t envision your institution as an easy target for criminal networks, you never know when they may attack. What matters is that you’re prepared and that your assets are sufficiently protected when—not if—your bank becomes their next target.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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Banking

Ogbonna Tasks Banks to Close African MSMEs $120bn Trade Finance Gap

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African MSMEs $120bn Trade Finance Gap

By Aduragbemi Omiyale

The chief executive of Access Bank Plc, Mr Roosevelt Ogbonna, has underscored the potential for Africa to reframe its narrative, urging countries on the continent to embrace their strengths.

The banker also reinforced the importance of private sector involvement in regional trade, particularly for micro, small, and medium-sized enterprises (MSMEs).

According to him, “Africa’s MSMEs are the backbone of its economy, yet they face a trade finance gap of around $120 billion. Financial institutions must innovate to close this gap and provide the liquidity these businesses need to grow and scale.”

Mr Ogbonna was one of the panellists at the just-concluded Africa CEO Forum held in Abidjan, Cote d’Ivoire.

The event brought together leaders from across the continent to discuss the critical role of private sector-led growth in the development of African trade and market integration under the topic Fast-tracking African Integration: The Private Sector Imperative.

During his presentation, Mr Ogbonna said, “Years ago, if you told someone something was made in China or Taiwan, it was often seen as inferior. Fast forward 30, 40 years, and now Made in China is a symbol of quality, and Made in Taiwan commands respect globally.

“The difference? These countries built a strong domestic market that allowed them to scale, build proficiency, and innovate. Africa is no different.

“We have everything we need, from abundant raw materials and vast natural resources, to a youthful population and fertile land. There is no reason why Africa has not yet transformed itself into the powerhouse we know it can be.

“Africa has what it takes to win, and my charge remains the same as I gave during our inaugural Africa Trade Conference in South Africa: Buy Africa, it’s not inferior!”

Echoing Mr Ogbonna’s sentiment at the gathering were the Secretary General of the African Continental Free Trade Area (AfCFTA), Wamkele Mene; and the president of Africa Finance Corporation (AFC), Samaila Zubairu, who highlighted the tangible steps taken to drive integration, such as the introduction of the e-Tariff Book and the AfCFTA Adjustment Fund, as well as the critical need for synergy between public and private investment to address Africa’s infrastructure gaps and finance its development priorities.

The discussion also focused on the barriers preventing the scaling of intra-African trade, notably the lack of adequate logistics and transport infrastructure. The Pan-African Payments and Settlement System (PAPSS) was highlighted as a potential game-changer in unlocking new cross-border trade opportunities by facilitating smoother payments and transactions.

They were all united in their belief that Africa’s transformation hinges on the development of regional value chains, the scaling of intra-African trade, and the need to build both financial and infrastructural capacities that will enable economic integration.

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Value of Fidelity Bank Stocks Now N1.055trn on NGX

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Fidelity Bank shareholders

By Aduragbemi Omiyale

The value of Fidelity Bank Plc stocks on the Nigerian Exchange (NGX) Limited is now N1.055 trillion, closing at N21.00 per unit at the close of business on Wednesday, May 14, 2025.

The shares of the financial institution closed flat at midweek, though it witnessed an uptick in trading volume, according to data harvested by Business Post from Customs Street.

Today, investors transacted 40,549,794 units of the company’s equities at the domestic bourse, higher than the 23,397,950 units traded on Tuesday.

With shares outstanding of 50,212,211,331 units at N21.00 each, the market capitalisation of the lender is now about N1.055 trillion, becoming one of the 19 firms on the NGX with a market value of over N1 trillion.

This is not the first time Fidelity Bank is getting to the league of a trillion-naira stock, as it attained this status on April 4, 2025, but fell below the threshold on April 7 before climbing higher again on April 23, and then slipping on May 12, before the latest feat, reflecting the volatility in the stock market, especially influenced by external shocks from the United States and China trade tariffs.

Fidelity Bank has been making efforts to join the league of tier-1 banks, which currently comprises, Zenith Bank, Access Bank, GTBank, UBA, and First Bank, collectively coined ZAGUF by Business Post.

Market analysts have expressed confidence in the ability of Fidelity Bank to rub shoulders with the Big Five in the Nigerian banking industry, particularly with the leadership of its chief executive, Mrs Nneka Onyeali-Ikpe.

The team is running to meet the recapitalisation deadline of the Central Bank of Nigeria (CBN) set for March 31, 2026. The bank must raise its capital base to N500 billion from N25 billion.

In the first quarter of 2025, Fidelity Bank recorded a solid performance, with its post-tax profit growing by 190 per cent to N91 billion, supported by higher interest income, forex gains, and cost efficiencies.

“The strong Q1 results suggest continued upward momentum in its stock. This could boost investor confidence and help sustain its valuation,” an analyst at Chapel Hill Denham, Nabila Mohammed, stated, adding that the lender’s high net interest margin and low-cost deposit base enhance its appeal.

In the past year, the share price of Fidelity Bank has risen by 141 per cent from N8.70 in May 2024 to the current value amid growing investor interest.

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CBN, NIBSS Eye $1bn Monthly Remittances into Nigeria

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BVN microfinance banks

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) is eyeing $1 billion monthly in remittances as it launched the Non-Resident Bank Verification Number (NRBVN) platform alongside the Nigeria Inter-Bank Settlement System (NIBSS).

According to the apex bank, this innovative digital gateway allows Nigerians in the diaspora to obtain a BVN remotely without the need for a physical presence in Nigeria.

The CBN Governor, Mr Yemi Cardoso, described the initiative as a milestone in Nigeria’s financial inclusion journey and a critical bridge connecting the country to its global citizens.

“For too long, many Nigerians abroad have faced difficulties accessing financial services at home due to physical verification requirements.

“The NRBVN changes that. Through secure digital verification and robust Know Your Customer (KYC) processes, Nigerians worldwide should now be able to access financial services more easily and affordably,” he said.

Mr Cardoso described the NRBVN as a dynamic platform.

“It is not the final destination, but it is the beginning of a broader journey.

“Stakeholders across the financial ecosystem, including banks, fintechs, and International Money Transfer Operators (IMTOs) are encouraged to integrate and collaborate in shaping and refining the system as it evolves,” he said.

He said that remittance flows through formal channels increased from $3.3 billion in 2023 to $4.73 billion in 2024, due to recent reforms and policy shifts, including the introduction of the willing buyer, willing seller FX regime.

According to him, with the NRBVN in place, the CBN is optimistic about reaching its $1 billion monthly remittance target.

“We are building a secure, efficient, and inclusive financial ecosystem for Nigerians globally.

“This platform is not just about financial access, it is about national inclusion, innovation, and shared prosperity,” he said.

Mr Cardoso also reiterated the apex bank’s commitment to reducing the high cost of remittances in Sub-Saharan Africa and ensuring continued engagement with stakeholders to optimise the platform.

In his remarks, Mr Muhammad Abdullahi, CBN’s Deputy Governor, Economic Policy Directorate, said that the NRBVN stood as a transformative tool, meticulously designed to enhance the banking experience for our diaspora community.

Mr Abdullahi said that by providing secure, remote access to financial services, the platform simplifies the process of maintaining robust banking relationships, facilitating meaningful investments in Nigeria, and supporting the seamless flow of remittances.

“It is our firm belief that this initiative will not only strengthen economic ties, it will also foster a sense of pride and belonging among Nigerians worldwide, encouraging them to play an even greater role in our nation’s development,” he said.

The NRBVN is part of a broader framework that includes the Non-Resident Ordinary Account (NROA) and Non-Resident Nigerian Investment Account (NRNIA).

Together, they enable access to savings, mortgages, insurance, pensions, and investment opportunities in Nigeria’s capital markets.

Under current regulations, Nigerians in the diaspora will retain the flexibility to repatriate the proceeds of their investments.

Importantly, the NRBVN system has been built with global standards in mind, incorporating stringent Anti-Money Laundering (AML) and KYC compliance protocols to ensure the integrity, transparency, and security of Nigeria’s financial system.

Every NRBVN enrollment undergoes comprehensive verification checks to safeguard against illicit financial activity, bolstering international confidence in the platform and the broader financial ecosystem.

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