The Central Bank of Nigeria (CBN) says it has commenced a
pilot supervision programme for virtual asset service providers (VASPs) as part
of efforts to strengthen oversight of anti-money laundering (AML) and
counter-terrorism financing risks in the financial system.
In a statement dated March 31, the apex bank said the
initiative is part of its enhanced anti-money laundering, counter-financing of
terrorism, and counter-proliferation financing (AML/CFT/CPF) framework, in line
with the Money Laundering (Prevention and Prohibition) Act 2022, the CBN Act,
and the Banks and Other Financial Institutions Act (BOFIA) 2020.
“The CBN has commenced an AML/CFT/CPF supervision pilot
involving a select group of virtual asset service providers identified as
relevant for supervisory engagement,” the bank said.
The entities selected for the initial phase of the pilot
include cNGN, Flutterwave, Juicyway, KoinKoin, KuCoin, and Paystack.
The regulator said the pilot forms part of its risk-based
supervisory programme and is aimed at strengthening financial system stability
and market integrity oversight of virtual asset-related activities.
“This pilot does not alter, replace or supersede the
existing regulatory framework governing virtual assets in Nigeria or the
mandates of other competent authorities,” the CBN added.
According to the apex bank, the programme is designed to
deepen understanding of risks associated with virtual asset operations and
improve compliance standards across participating firms.
“It also supports VASPs in strengthening their AML/CFT/CPF
frameworks in line with emerging supervisory expectations, including
requirements under FATF recommendations 15 and 16, with a particular focus on
Travel Rule preparedness and proliferation-financing controls,” the regulator
added.
‘PARTICIPATION DOES NOT CONFER LICENSING, APPROVAL’
CBN said participation in the pilot reflects a formal
supervisory engagement and does not confer any licensing or regulatory approval
on the entities involved.
Under the programme, participating firms are required to
submit monthly AML/CFT/CPF supervisory key performance indicators (KPIs),
participate in engagements with the CBN and the Nigeria Financial Intelligence
Unit, and undergo reviews covering governance, customer onboarding, sanctions
screening, transaction monitoring, and cross-border activities.
The apex bank added that the firms must also demonstrate
credible implementation plans for compliance with the Financial Action Task
Force (FATF) Travel Rule.
CBN said the programme has been structured in phases, noting
that subsequent phases are already fully scheduled and not open to external
expressions of interest.
The regulator added that all data submitted by participating
firms will be treated as confidential supervisory information in line with the
Nigeria Data Protection Act 2023 and the bank’s internal confidentiality
standards.
CBN said the initiative underscores its commitment to
strengthening regulatory oversight, improving market integrity, and ensuring
that emerging financial technologies operate within a secure and transparent
framework.
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