The Central Bank of Nigeria Commences AML/CFT/CPF Supervision Pilot for Select Virtual Asset Service Providers
Part of the Bank's risk-based supervisory programme 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) continues to strengthen the integrity of Nigeria's banking industry through enhanced Anti-Money Laundering, Counter-Financing of Terrorism, and Counter-Proliferation Financing (AML/CFT/CPF) supervision, in line with the Money Laundering (Prevention and Prohibition) Act 2022, the CBN Act, and the Banks and Other Financial Institutions Act (BOFIA) 2020.
The CBN has commenced an AML/CFT/CPF Supervision Pilot involving a select group of Virtual Asset Service Providers (VASPs) identified as relevant for supervisory engagement. 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."
Purpose and Design of the Pilot
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.
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.
Requirements for Participating VASPs
During the Pilot period, participating VASPs are required to:
- Submit monthly AML/CFT/CPF supervisory Key Performance Indicators (KPIs) using the prescribed CBN template
- Participate in supervisory engagements with the CBN (and the NFIU where applicable)
- Undergo reviews covering governance, customer onboarding, sanctions screening, transaction monitoring, and cross-border activity
- 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."
Participating Entities — Initial Phase
The following entities are participating in this initial supervisory phase:
These entities constitute the first set of VASPs engaged under the Pilot, which has been structured in multiple phases. Subsequent phases are already fully scheduled and are not open to external expressions of interest.
Data Confidentiality
All data submitted by participating VASPs is treated as confidential supervisory information, handled strictly in accordance with the Nigeria Data Protection Act 2023 and applicable CBN confidentiality standards.
For further information, please contact: cmd.financialcrime@cbn.gov.ng
