The Central Bank of Nigeria (CBN) selected cNGN, Flutterwave, Juicyway, KoinKoin, KuCoin, and Paystack for the initial phase of the pilot supervision programme for virtual asset service providers (VASPs). It said it is part of efforts to strengthen oversight of anti-money laundering (AML) and counter-terrorism financing risks in the financial system.
The CBN, in a statement, explained that the move 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,” it said.
“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.
CBN said participation in the pilot reflects a formal supervisory engagement and does not confer any licensing or regulatory approval on the entities involved.
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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.
