Nigeria: Central Bank adopted guidelines on operations of bank accounts for virtual assets service providers

On 22 December 2023, the Central Bank of Nigeria (CBN) adopted and implemented Guidelines on Operations of Bank Accounts for Virtual Assets Service Providers (VASPs) circular Ref: FPR/DIR/PUB/CIR/002/003, superseding previous restrictions. VASPs must obtain a valid licence from the Securities and Exchange Commission (SEC) and adhere to documentation requirements. Provisions mandate that VASPs operate designated accounts exclusively for virtual asset transactions, with no cash withdrawals or third-party cheque clearances permitted. Additionally, VASPs must comply with customer due diligence (CDD) processes and measures for anti-money laundering (AML), combating the financing of terrorism (CFT), and countering proliferation financing (CPF). Financial institutions (FIs) are required to monitor and report on VASP activities to ensure compliance with these guidelines and mitigate associated risks.