February 2026 Regulatory Roundup
February may be the shortest month of the year, but it delivered no less regulatory developments. From enforcement actions to policy signals, this roundup highlights the regulatory developments businesses and compliance teams should pay attention to.
Nigeria
- CBN Publishes First Comprehensive Fintech Report
- OFAC Updates Sanctions List; Implications for Nigerian reporting entities
- CBN Lowers Monetary Policy Rate to 26.5 Percent
- Nigeria’s Data Protection Commission Probe Into Temu Continues Amid Ongoing Compliance Concerns
- NGX Imposes over ₦540M in Compliance Fines on Listed Companies
- FRC Mandates Audit Firms and Assurance Service Providers to Register by 1 April 2026
- FRC Updates Sustainability Reporting Roadmap
Africa
- Kenya fines GTBank Kenya regarding Corporate Lending Misconduct.
- Kenya’s Central Bank Signals a Regulatory Reset for the Financial Sector.
Global News
- FATF expands Grey List, Tightening Global AML Scrutiny.
- FinCEN Relaxes Beneficial Ownership Reporting Requirements.
- UK Payments Regulator Fines Bank of Ireland UK over Consumer Protection Delays.
Crypto Scoop
- Crypto Regulation in Focus as US Lawmakers Move on the Clarity Act.
- Hong Kong Moves to License Stablecoin Issuers.
- EU Backs the Digital Euro in Major Policy Signal.
- CBN Publishes First Comprehensive Fintech Report
The Central Bank of Nigeria has issued its first comprehensive fintech report, highlighting growth in real-time payments and broader industry participation, while flagging persistent gaps in licensing and risk management. This signals a shift from informal engagement to structured regulatory oversight, requiring fintech operators to strengthen governance frameworks and compliance planning.
2. OFAC Updates Sanctions List; Implications for Nigerian reporting entities
OFAC has updated its sanctions list, designating eight Nigerians and three entities linked to cybercrime and terrorist financing, triggering asset freezes and financial restrictions. This reinforces the need for all regulated entities; to conduct regular sanctions screening, ensure counterparties remain compliant, and promptly escalate any positive matches to mitigate regulatory infraction and reputational risk.
3. CBN Lowers Monetary Policy Rate to 26.5 Percent
With inflation showing signs of easing, the Central Bank of Nigeria has lowered its benchmark interest rate to 26.5% at its 304th Monetary Policy Committee meeting on 23–24 February 2026. The move will impact borrowing costs, liquidity management, and risk strategies, prompting banks to adjust capital planning, lending policies, and internal risk monitoring.
4. Nigeria’s Data Protection Commission Probe Into Temu Continues Amid Ongoing Compliance Concerns
Nigeria’s NDPC has opened a formal investigation into Temu, citing potential breaches of data minimisation and processing obligations. The action highlights the regulator’s focus on personal data protection and signals to all businesses processing personal data in Nigeria that data protection is mandatory, with compliance may attract regulatory scrutiny.
5. NGX Imposes over ₦540M in Compliance Fines on Listed Companies
NGX Regulation Limited has fined 34 listed companies a total of over ₦540 million for missing financial filing deadlines. The penalties signal that the Exchange treats disclosure timelines as key governance obligations, not mere administrative tasks. Listed companies must strengthen internal reporting and board oversight to stay compliant.
6. FRC Mandates Audit Firms and Assurance Service Providers to Register by 1 April 2026
The Financial Reporting Council (FRC) has directed the closure of unregistered audit and assurance firms effective 1 April, 2026, to protect the integrity of statutory audit opinions. The move signals stricter oversight of the profession and requires firms to complete registration promptly. The effectiveness of this measure will depend on intentional enforcement by the FRC.
7. FRC Updates Sustainability Reporting Roadmap
The FRC has released the amended Roadmap for the Adoption of IFRS Sustainability Disclosure Standards (2026) and Sustainability Reporting Guideline 1 (SRG 1) 2026, providing clearer timelines, scope, and implementation guidance for IFRS S1 and IFRS S2 adoption. The update addresses previous market uncertainties, including reporting timelines, assurance requirements, and eligible professionals for sustainability reporting. The move signals a transition to more structured and enforceable sustainability disclosure requirements, requiring companies to assess readiness, strengthen governance frameworks, and align ESG data and reporting processes with evolving regulatory expectations.
- Kenya fines GTBank Kenya regarding Corporate Lending Misconduct.
The Competition Authority of Kenya has fined Guaranty Trust Bank Kenya KES 33.18 million ($257,000) over its loan restructuring practices, signalling increased scrutiny of fairness and transparency in corporate lending. The move expands competition oversight into areas traditionally regulated by the Central Bank, raising the need for banks to reassess lending practices through both regulatory and competition law lenses. Regulators in Kenya are placing greater focus on fairness and transparency in corporate lending, treating loan restructurings as competition matters. The recent fine of Guaranty Trust Bank Kenya, KES 33.18 million ($257,000) illustrates how the Competition Authority is expanding into areas traditionally overseen by the Central Bank. This raises the question – is this a necessary regulatory evolution or a potential overreach of authority?
2. Kenya’s Central Bank Signals a Regulatory Reset for the Financial Sector
The Central Bank of Kenya has invited consultants to review the Central Bank Act and Banking Act, signalling a potential regulatory reset for the financial sector. The exercise aims to close legal gaps and clarify the CBK’s authority over non-traditional financial institutions as Kenya’s fintech and digital finance ecosystem expands.
- FATF expands Grey List, Tightening Global AML Scrutiny.
The Financial Action Task Force has placed Kuwait and Papua New Guinea under monitoring due to gaps in its anti-money laundering and counter-terrorism financing frameworks. While grey-listing is not a sanction, it signals higher risk for international transactions, prompting regulated entities to revisit country risk assessments, and closely monitor cross-border activities.
2. FinCEN Relaxes Beneficial Ownership Reporting Requirements.
FinCEN has relaxed the requirement for covered financial institutions to re-verify beneficial owners each time a legal entity opens a new account. Verification is now required only at account onboarding, when facts reasonably call into question previously obtained ownership information, or based on the institution’s risk-based ongoing due diligence procedures. This change streamlines account openings, reduces redundant documentation, and allows institutions to focus resources on higher-risk relationships while maintaining effective AML oversight.
3. UK Payments Regulator Fines Bank of Ireland UK over Consumer Protection Delays.
The Payment Systems Regulator (PSR) has fined Bank of Ireland UK £3.78 million for failing to implement Confirmation of Payee (CoP) since the October 31, 2023 deadline. CoP enables customers to verify that the account they are paying matches the intended recipient, helping prevent fraud and misdirected payments.
- Crypto Regulation in Focus as US Lawmakers Move on the Clarity Act.
US policymakers are pushing for passage of the Clarity Act, but debate over whether exchanges can offer interest or rewards on stablecoins is slowing progress. While such rewards could pull deposits from traditional institutions, undue restriction on crypto firms would stifle innovation.
2. Hong Kong Moves to License Stablecoin Issuers.
The Hong Kong Monetary Authority is set to issue its first stablecoin licences in March, marking a transition from sandbox experimentation to fully regulated market activity. Firms looking to participate will be expected to demonstrate robust governance and compliance frameworks.
3. EU Backs the Digital Euro in Major Policy Signal.
The European Parliament has given initial approval for a central bank digital currency designed to function both online and offline, with built-in safeguards for privacy, financial stability, and financial inclusion. For financial institutions and virtual asset service providers, this signals the need to begin planning for potential shifts in liquidity management, wallet infrastructure, and compliance frameworks ahead of a possible 2029 launch.
- BlueCore Gas InfraCo Completes Acquisition of Axxela, Strengthening Nigeria’s Gas Infrastructure
- PNC Financial Receives Approval to Complete Acquisition of FirstBank Holding Company
- SoftBank Acquires DigitalBridge to Strengthen Global Digital Infrastructure Investment
- Mollie Acquires GoCardless in Major European Payments Consolidation
- GSK Acquires 35Pharma for $950 Million to Boost Drug Development Pipeline
- MTN Group Moves to Fully Acquire IHS Towers in a $6.2 Billion Deal
- OpenAI Closes Record-Breaking $110 Billion Funding Round
- World Labs Secures $1 Billion in Series Funding for 3D AI Innovation
- Breadfast Secures $50 Million Pre-Series C Funding in Egypt
We hope you found our February Regulatory Roundup 2026 helpful and informative. If you have questions or insights about the regulatory landscape in your region? Reach out to us on any of our social media handles, email, and we would be available to help.
Also, share your thoughts in the comments below, and let’s continue the conversation!
Please note that the information provided in this article does not constitute legal advice and should not be construed as such. For legal advice specific to your situation, please consult a legal practitioner.
