According to the apex bank, the pilot forms part of the Bank’s risk-based supervisory programme and supports ongoing efforts to strengthen financial system stability and market integrity oversight of virtual asset-related activities within the CBN’s mandate.
The Central Bank of Nigeria (CBN) has commenced a pilot programme to strengthen oversight of virtual asset activities, targeting selected Virtual Asset Service Providers (VASPs) as part of its broader financial system integrity efforts.
The CBN disclosed the programme in a statement on Tuesday, noting that the initial group of companies selected for the pilot includes Flutterwave, Paystack, KuCoin, KoinKoin, Juicyway, and cNGN.
The bank noted that the programme has been structured in multiple phases, with subsequent phases already fully scheduled and not open to new participants.
The initiative focuses on enhancing compliance with Anti-Money Laundering, Counter-Financing of Terrorism, and Counter-Proliferation Financing (AML/CFT/CPF) regulations, in line with existing laws such as the Money Laundering (Prevention and Prohibition) Act 2022 and the Banks and Other Financial Institutions Act (BOFIA) 2020.
According to the apex bank, the pilot forms part of the Bank’s risk-based supervisory programme and supports ongoing efforts to strengthen financial system stability and market integrity oversight of virtual asset-related activities within the CBN’s mandate.
“This pilot does not alter, replace or supersede the existing regulatory framework governing virtual assets in Nigeria or the mandates of other competent authorities,” the statement read.
The pilot is designed to develop a structured understanding of AML/CFT/CPF risks, business models, and operational practices across participating entities.
It also supports VASPs in strengthening their AML/CFT/CPF frameworks in line with emerging supervisory expectations, including requirements under FATF Recommendations 15 and 16, with a particular focus on Travel Rule preparedness and proliferation-financing controls.
The CBN explained that participation in the pilot reflects a formal supervisory invitation to engage with the CBN in a controlled and structured environment, enabling participating entities to contribute insights that support the CBN’s AML/CFT/CPF, financial system stability, and market integrity oversight of virtual asset-related activities within its mandate.
During the pilot period, participating VASPs are required to submit monthly AML/CFT/CPF supervisory Key Performance Indicators (KPIs) using the prescribed CBN template and to participate in supervisory engagements with the CBN (and the NFIU, where applicable).
The regulator stated that VASPs must also undergo reviews covering governance, customer onboarding, sanctions screening, transaction monitoring, and cross-border activity.
The CBN added that parts of the process will require the VASPs to demonstrate credible implementation plans for the FATF Travel Rule.
“Participation in the Pilot is strictly supervisory and does not confer any regulatory status, approval, licensing right, or authorisation on participating entities,” the CBN stated.
