CBN, NFIU to Monitor Illicit Crypto Transactions in Centralized Exchanges

  • Richard Marley
  • May 24, 2022
  • 2 minutes read
  • 1011

The CBN and NFIU have been urged to track illicit transactions in cryptocurrency by engaging with centralized exchange agencies to access data for regulation purposes. 

At the 2022 Legal Business Conference, The Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) have been urged to engage with the centralised exchange agencies such as Binance and Bundle for tracking any illegal cryptocurrency transactions and for getting the data required for investigation and regulation motives.

Organized by the Legal Business Network, the President of Stakeholder in Blockchain Technology Association of Nigeria (SIBAN), Senator Ihenyen, stated that the CBN disclosed many risks associated with crypto as it wants all banks to perform Know Your Customer (KYC) through compliance and transaction monitoring. 

He revealed that the Financial Action Task Force (FATF) has ranked Nigeria as poor in seven sectors as the country lacks the adequate mechanism to prevent money laundering and terrorist financing globally in the financial and virtual asset sector. 

A regulation issued by the Securities and Exchange Commission (SEC) was indicated to ensure that virtual asset providers are authorised and that they are AML/KYC compliance agencies.

The Convener of the conference, Ifeoma Ben, said that the recent exposure of the eNaira by the CBN has revealed many permitted issues in blockchain and financial technology. She further added that technology is the future and regulators need to find a balance between laws and inventions. 

Additional statements were issued by Ihenyen as “Everything is happening so fast because the FATF has given Nigeria up to October 2022, to ensure that it complies with the global standards otherwise, Nigeria will end up in the grey list. 

“It is noteworthy to state here that the CBN has responded by saying that we have to block or stop all cryptocurrency transactions in the banking and entire financial systems. If you check all facts and data, you will realize that since that pronouncement was made, there has been more adaption of bitcoin and other cryptocurrencies by Nigerians and non-Nigerians alike.”

Suggested Read: Crypto Exchange Binance Banned by UK’s Financial Watchdog