The Central Bank of Nigeria has introduced a pilot supervisory framework targeting Anti-Money Laundering (AML), Counter-Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) compliance among Virtual Asset Service Providers operating in the country.
The initiative covers selected firms within the virtual asset ecosystem, including Flutterwave, Paystack, as part of efforts to enhance regulatory oversight and improve risk monitoring in Nigeria’s growing digital financial space.
Brandspur Banking News Desk reports that the pilot programme is designed as a risk-based supervisory exercise aimed at strengthening the financial system’s resilience while improving compliance with existing anti-financial crime regulations.
The framework aligns with key legal instruments such as the Money Laundering (Prevention and Prohibition) Act 2022, the Central Bank of Nigeria Act, and the Banks and Other Financial Institutions Act (BOFIA) 2020, which collectively guide financial supervision in the country.
The pilot will assess participating Virtual Asset Service Providers (VASPs) on governance structures, customer onboarding processes, transaction monitoring systems, sanctions screening mechanisms, and cross-border transaction activities.
It also places emphasis on compliance with global standards, particularly the Financial Action Task Force (FATF) Recommendations 15 and 16, which focus on the Travel Rule and controls related to proliferation financing.
Under the programme, participating entities are required to submit monthly supervisory data, including key performance indicators (KPIs), engage in periodic supervisory sessions with regulators, and provide implementation plans for compliance frameworks.
Other firms included in the pilot programme are KuCoin, KoinKoin, Juicyway, and cNGN, all of which will undergo phased evaluation under the supervisory exercise.
The CBN clarified that the pilot does not constitute licensing or regulatory approval for the participating entities, but rather serves as a structured engagement to better understand operational models and associated financial risks within the virtual asset sector.
The apex bank also assured that all information submitted during the process will be treated as confidential and handled in line with the Nigeria Data Protection Act 2023 and established supervisory confidentiality standards.
The development follows recent regulatory moves by the CBN to strengthen cybersecurity and financial crime prevention across the banking sector, including the introduction of mandatory technology-driven compliance tools for regulated financial institutions.
Officials say the initiative is part of broader efforts to enhance transparency, improve oversight, and ensure that Nigeria’s financial system remains secure amid the rapid growth of digital assets and fintech-driven transactions.
