Six VASPs Tapped for New Supervisory Pilot
The Central Financial institution of Nigeria has formally launched an anti-money laundering and counter-financing of terrorism supervisory pilot program. The brand new pilot is designed to align Nigeria with the Monetary Motion Activity Power (FATF) Suggestions 15 and 16—particularly the journey rule, which requires digital asset service suppliers to share originator and beneficiary data for transactions.
Only some years in the past, the Nigerian crypto panorama was outlined by friction. In February 2021, the CBN successfully barred business banks from servicing crypto exchanges. Nonetheless, following the lifting of that ban in December 2023 and the following enactment of the Investments and Securities Act of 2025, the main focus has shifted from exclusion to integration.
Based on a press launch, the CBN has handpicked a choose group of fintech and crypto entities to take part on this preliminary part. These embrace the Africa Stablecoin Consortium, Flutterwave, Juicyway, Koinkoin, Kucoin and Paystack. Nonetheless, the CBN was cautious to notice that participation “doesn’t confer any regulatory standing, approval, or licensing proper.” As an alternative, it’s a managed and structured setting for the financial institution to check enterprise fashions and operational dangers.
Below the pilot, taking part VASPs are obliged to submit month-to-month knowledge on AML/CFT efficiency and bear audits of buyer onboarding, sanctions screening and transaction monitoring. They have to additionally exhibit credible plans to trace cross-border digital asset flows.
“The Pilot is designed to develop a structured understanding of AML/CFT/CPF dangers, enterprise fashions, and operational practices throughout taking part entities,” the CBN said. “It additionally helps VASPs in strengthening their AML/CFT/CPF frameworks consistent with rising supervisory expectations.”
The financial institution emphasised that each one knowledge collected shall be protected underneath the Nigeria Knowledge Safety Act of 2023.
By bringing exchanges like Kucoin and cost giants like Flutterwave into a proper supervisory loop, the CBN goals to weed out unhealthy actors whereas guaranteeing that Nigeria—one of many world’s most energetic crypto markets—stays a secure node within the world monetary system.
The CBN has already scheduled subsequent phases of the pilot, although it confirmed these aren’t open to exterior expressions of curiosity right now.
FAQ ❓
What did the CBN launch? Nigeria’s central financial institution launched an AML/CFT supervisory pilot program. Which FATF guidelines apply? The pilot aligns with FATF Suggestions 15 and 16, together with the Journey Rule. Who’s taking part? Chosen fintechs and crypto companies like Flutterwave, Kucoin, Paystack, and others joined. What’s the purpose? This system exams compliance, knowledge reporting, and threat controls to strengthen Nigeria’s crypto oversight.
