Nigeria: Central Bank of Nigeria launched supervision pilot for virtual asset service providers

On 30 March 2026, the Central Bank of Nigeria (CBN) launched an anti-money laundering, counter-financing of terrorism, and counter-proliferation financing (AML/CFT/CPF) supervision pilot for a select group of virtual asset service providers (VASPs). The VASPs include Compliant Naira (cNGN), Flutterwave, Juicyway, KoinKoin, KuCoin, and Paystack, as part of its broader risk-based supervisory programme aimed at strengthening oversight of virtual asset-related activities and market integrity. The pilot references the Money Laundering (Prevention and Prohibition) Act 2022, the Central Bank of Nigeria Act, and the Banks and Other Financial Institutions Act (BOFIA) 2020, and is designed to develop a structured understanding of money laundering, terrorist financing, and proliferation financing risks across participating entities. Participating VASPs are required to submit monthly AML/CFT/CPF supervisory Key Performance Indicators (KPIs) using a prescribed CBN template, participate in supervisory engagements with the CBN and the Nigerian Financial Intelligence Unit (NFIU) where applicable, and undergo reviews covering governance, customer onboarding, sanctions screening, transaction monitoring, and cross-border activity. They must also demonstrate credible implementation plans for the Financial Action Task Force (FATF) Travel Rule, in line with FATF Recommendations, with a particular focus on proliferation-financing controls. It also specifies that participation does not confer any regulatory status, licence, approval, or authorisation on the entities involved, nor does it alter the existing regulatory framework governing virtual assets in Nigeria.