CBN Launches AML/CFT Supervision Pilot with Flutterwave, Paystack, KuCoin and Other VASPs
The Central Bank of Nigeria (CBN) has commenced a pilot supervision programme targeting Virtual Asset Service Providers (VASPs), as part of efforts to strengthen Anti-Money Laundering, Counter-Financing of Terrorism, and Counter-Proliferation Financing (AML/CFT/CPF) oversight within Nigeria’s financial system.
The initiative forms part of the CBN’s risk-based supervisory framework and aims to deepen its understanding of the operational models, risk exposures, and compliance structures of virtual asset operators. The pilot also seeks to enhance market integrity and financial system stability amid the growing relevance of digital asset transactions.
According to the CBN, the exercise does not alter or replace the existing regulatory framework governing virtual assets, nor does it confer any form of licensing or regulatory approval on participating entities. The initial phase of the pilot includes selected VASPs, including Flutterwave, Paystack, KuCoin, cNGN, Juicyway, and KoinKoin.
Participating firms are required to submit monthly AML/CFT/CPF Key Performance Indicators (KPIs) using the prescribed CBN template, undergo supervisory reviews covering governance, customer onboarding, sanctions screening, transaction monitoring, and cross-border activity, and demonstrate preparedness to comply with global standards, including the Financial Action Task Force (FATF) Travel Rule.
The CBN noted that insights from the pilot will support the development of a more robust supervisory approach to virtual asset activities, while ensuring alignment with international best practices and domestic regulatory requirements.
The move underscores the regulator’s commitment to proactively managing emerging risks in Nigeria’s evolving digital financial ecosystem while fostering a more secure and transparent operating environment.
