CBN begins new checks on crypto firms to curb financial crimes
The Central Bank of Nigeria (CBN) has introduced a new monitoring programme to better check the activities of virtual asset operators and protect Nigeria’s financial system from money laundering and
- Nduka Chiejina (Assistant Editor)
The Central Bank of Nigeria (CBN) has introduced a new monitoring programme to better check the activities of virtual asset operators and protect Nigeria’s financial system from money laundering and other illegal financial activities.
The apex bank said the move is part of its ongoing work to improve Anti-Money Laundering, Counter-Financing of Terrorism, and Counter-Proliferation Financing controls across the banking and financial services sector, in line with existing laws, including the Money Laundering Act 2022, the CBN Act, and the Banks and Other Financial Institutions Act 2020.
According to the CBN, the new AML/CFT/CPF Supervision Pilot involves a select group of Virtual Asset Service Providers (VASPs) identified for closer regulatory engagement, as authorities seek to better understand and monitor activities in the fast-growing digital asset space.
The bank said the pilot is part of its risk-based supervisory programme and is aimed at strengthening financial system stability and improving oversight of virtual asset-related transactions within its regulatory mandate.
It clarified that the initiative does not change or replace the current regulatory framework for virtual assets in Nigeria, nor does it override the responsibilities of other relevant agencies.
“The Pilot is designed to develop a structured understanding of money laundering, terrorism financing, and proliferation financing risks, business models, and operational practices across participating entities,” the CBN said.
It added that the programme will also help participating firms improve their compliance systems in line with global standards, particularly the recommendations of the Financial Action Task Force on virtual assets.
“The Pilot 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 bank stated.
The apex bank explained that participation in the programme is based on formal supervisory invitation and provides a structured platform for engagement between regulators and operators in the sector.
During the pilot phase, participating companies are expected to submit monthly reports on key compliance indicators, take part in supervisory meetings with the CBN and the Nigerian Financial Intelligence Unit where necessary, and undergo detailed reviews of their governance systems, customer onboarding processes, sanctions screening, and transaction monitoring activities.
They are also required to show clear plans for implementing the FATF Travel Rule, a global standard aimed at improving transparency in virtual asset transactions, especially across borders.
The CBN stressed that participation in the pilot does not amount to regulatory approval or licensing, noting that the process is strictly for supervisory purposes.
“Participation in the Pilot is strictly supervisory and does not confer any regulatory status, approval, licensing right, or authorisation on participating entities,” the bank said.
The first group of companies involved in the pilot includes cNGN, Flutterwave, Juicyway, KoinKoin, KuCoin, and Paystack.
The CBN said the programme has been structured in phases, with subsequent rounds already scheduled and not open to new participants.
It also assured that all data submitted by the companies will be treated as confidential and handled in line with the Nigeria Data Protection Act 2023 and existing CBN confidentiality standards.
The initiative comes as regulators continue to tighten oversight of digital financial services to protect the financial system from abuse while supporting innovation in the sector.
