CBN begins AML/CFT supervision pilot for six major crypto firms

The Central Bank of Nigeria (CBN) has commenced an Anti-Money Laundering (AML), Counter-Financing of Terrorism (CFT), and Counter-Proliferation Financing (CPF) supervision pilot for six Virtual Asset Service Providers (VASPs) effective March 31, 2026. The participating firms include cNGN, Flutterwave, Juicyway, KoinKoin, KuCoin, and Paystack.

This pilot is part of the CBN's risk-based supervisory framework and aims to assess AML/CFT/CPF risks, business models, and operational practices. It supports ongoing efforts to strengthen financial system stability and align with global standards, particularly the Financial Action Task Force (FATF) Travel Rule requirements. Nigeria was removed from the FATF grey list in October 2025 after implementing stronger anti-money-laundering regimes.

The supervision does not alter existing regulations or confer any licensing status. Participating firms will submit monthly performance metrics, engage directly with supervisors, and undergo reviews covering governance, customer onboarding, sanctions screening, transaction monitoring, cross-border activity, and Travel Rule implementation plans. The Nigeria Financial Intelligence Unit (NFIU) is involved in the process.

Nigeria processed $92.1 billion in cryptocurrency transactions between July 2024 and June 2025, according to Chainalysis, making it Africa's largest crypto market. The Investment and Securities Act (ISA) 2025 designated the Securities and Exchange Commission (SEC) as the primary digital assets regulator, while the Virtual Asset Regulatory Authority's White Paper outlines a coordinated oversight model involving CBN, SEC, and Nigeria Revenue Service.

For users of these platforms, expect enhanced KYC and transaction monitoring. For crypto businesses, this signals that stricter compliance requirements are coming nationwide beyond the pilot group. Consider reviewing your AML policies now. Will you continue using these platforms as compliance tightens, or seek alternatives with stronger regulatory alignment?

SOURCE: https://techcabal.com/2026/04/01/cbn-launches-crypto-aml-pilot-flutterwave-paystack/