Nigeria's Central Bank Tightens Oversight on Virtual Asset Firms in New Pilot
The Central Bank of Nigeria (CBN) has launched a pilot program for Anti-Money Laundering (AML), Counter-Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) supervision targeting Virtual Asset Service Providers (VASPs), including Flutterwave and Paystack.
This initiative, announced in a statement dated March 31, 2026, is part of the CBN's ongoing efforts to enhance the integrity of Nigeria's banking sector.
The pilot is designed to strengthen the financial system's stability and oversight of virtual asset-related activities, in accordance with the Money Laundering (Prevention and Prohibition) Act 2022, the CBN Act, and the Banks and Other Financial Institutions Act (BOFIA) 2020.
The CBN emphasized that this pilot is a risk-based supervisory initiative that aligns with its broader mission to monitor the growing virtual asset sector.
The program aims to enhance the understanding of AML, CFT, and CPF risks across the participating VASPs, improving their operational practices and frameworks. It specifically focuses on ensuring compliance with the FATF (Financial Action Task Force) Recommendations 15 and 16, which address the Travel Rule and proliferation-financing controls.
During the pilot, participating VASPs are required to: - Submit monthly AML/CFT/CPF supervisory Key Performance Indicators (KPIs) using the prescribed CBN template. - Engage in supervisory sessions with the CBN (and the NFIU, where applicable). - Undergo reviews of governance, customer onboarding, sanctions screening, transaction monitoring, and cross-border activities. - Provide credible implementation plans for the FATF Travel Rule.
The CBN clarified that while the pilot is a supervisory process, it does not confer regulatory status, approval, licensing rights, or authorization to the participating entities.
The first set of VASPs involved in the pilot includes: - cNGN - Flutterwave - Juicyway - KoinKoin - KuCoin - Paystack
These entities will undergo the pilot program in multiple phases, with the subsequent phases already scheduled.
The CBN reassured that all data submitted by the participating VASPs will be treated as confidential supervisory information, handled in compliance with the Nigeria Data Protection Act 2023 and CBN confidentiality standards.
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