The Central Bank of Nigeria has officially launched an anti-money laundering and counter-financing of terrorism supervisory pilot program. The new pilot is designed to align Nigeria with the Financial Action Task Force (FATF) Recommendations 15 and 16—specifically the travel rule, which requires virtual asset service providers to share originator and beneficiary information for transactions.
Under the pilot, participating VASPs are obliged to submit monthly data on AML/CFT performance and undergo audits of customer onboarding, sanctions screening and transaction monitoring. They must also demonstrate credible plans to track cross-border digital asset flows.
“The Pilot is designed to develop a structured understanding of AML/CFT/CPF risks, business models, and operational practices across participating entities,” the CBN stated. “It also supports VASPs in strengthening their AML/CFT/CPF frameworks in line with emerging supervisory expectations.”
The bank emphasized that all data collected will be protected under the Nigeria Data Protection Act of 2023.
The CBN has already scheduled subsequent phases of the pilot, though it confirmed these are not open to external expressions of interest at this time.
FAQ What did the CBN launch? Nigeria’s central bank introduced an AML/CFT supervisory pilot program. Which FATF rules apply? The pilot aligns with FATF Recommendations 15 and 16, including the Travel Rule. Who is participating? Selected fintechs and crypto firms like Flutterwave, Kucoin, Paystack, and others joined. What is the goal? The program tests compliance, data reporting, and risk controls to strengthen Nigeria’s crypto oversight.
