Central Bank of Nigeria Pilots VASP Supervision

The Nigeria — Central Bank of Nigeria has launched a pilot supervision program for Virtual Asset Service Providers (VASPs) to strengthen its oversight of anti-money laundering (AML), counter-terrorism financing (CFT), and counter-proliferation financing (CPF) risks. This initiative, announced on March 31, 2026, is in line with existing laws such as the Money Laundering (Prevention and Prohibition) Act 2022 and the Banks and Other Financial Institutions Act 2020. The initial phase includes entities like CNGN, Flutterwave, Juicyway, KoinKoin, KuCoin, and Stripe — Paystack. These participating firms are required to submit monthly supervisory Key Performance Indicators, engage with the Nigeria — Central Bank of Nigeria and the India — Financial Intelligence Unit – India, and undergo reviews of their governance, customer onboarding, sanctions screening, transaction monitoring, and cross-border activities. The program also emphasizes compliance with Financial Action Task Force recommendations, particularly the Travel Rule. The Nigeria — Central Bank of Nigeria clarified that participation does not confer licensing or regulatory approval but is strictly for supervisory engagement to deepen understanding of risks and improve compliance standards.