The Central Bank of Nigeria (CBN) has launched a pilot supervisory programme on anti-money laundering and counter-terrorism financing targeting selected fintechs and virtual asset-linked firms, including Flutterwave and Paystack.
In a statement dated March 31, 2026, the apex bank said the initiative covers Anti-Money Laundering (AML), Counter-Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) frameworks, as part of efforts to strengthen oversight of Nigeria’s fast-growing digital finance ecosystem.
The CBN said the pilot, which targets Virtual Asset Service Providers (VASPs), is designed to deepen regulatory understanding of risks associated with virtual asset activities, while improving compliance and operational standards across participating firms.
According to the bank, the programme is anchored on existing laws, including the Money Laundering (Prevention and Prohibition) Act 2022, the CBN Act, and the Banks and Other Financial Institutions Act (BOFIA) 2020.
“This pilot does not alter or replace existing regulations governing virtual assets or the mandates of other competent authorities,” the CBN clarified, describing it as a risk-based supervisory exercise.
The regulator said the initiative aligns with global standards, particularly Recommendations 15 and 16 of the Financial Action Task Force (FATF), which address virtual asset oversight, including the Travel Rule and proliferation financing controls.
Under the pilot, participating firms are required to submit monthly AML/CFT/CPF performance metrics, engage in supervisory sessions with the CBN and, where necessary, the Nigeria Financial Intelligence Unit (NFIU), and undergo reviews of governance systems, customer onboarding processes, sanctions screening, transaction monitoring, and cross-border operations.
They are also expected to provide implementation plans for compliance with the FATF Travel Rule.
The CBN, however, stressed that participation in the pilot does not confer licensing, regulatory approval, or legal status on the entities involved.
Other firms listed in the first phase of the programme include cNGN, Juicyway, KoinKoin, and KuCoin, with subsequent phases already scheduled.
The apex bank assured that all data submitted during the exercise would be treated as confidential, in line with the Nigeria Data Protection Act 2023 and its internal standards.
The move comes amid a broader regulatory push by the CBN to tighten oversight of the financial system. It follows the recent introduction of a mandatory Cybersecurity Self-Assessment Tool (CSAT) for regulated institutions and new requirements for automated anti-money laundering systems.
The bank said the measures are aimed at strengthening the detection of suspicious transactions, improving risk-based supervision, and safeguarding the integrity of Nigeria’s increasingly digitised financial system.
