- Nigeria needs cryptocurrency regulations to combat financial crimes according to Adedeji Owonibi, co-founder of a Nigerian blockchain intelligence provider. Despite the CBN lifting a crypto transaction ban, compliance training aims to ensure banks adhere to relevant laws when dealing with VASPs.
- While Nigeria has trained some law enforcement as compliance specialists, Owonibi said more training is needed to combat financial crimes. The government would need to regulate crypto activities to curb money laundering.
- The CBN had banned banks from operating accounts for cryptocurrency providers but issued new guidelines in December 2022 permitting VASPs to open accounts. Banks must ensure the VASPs are compliant exchanges, preventing them from becoming channels for money laundering, drug sales or terrorism financing.
Nigeria needs cryptocurrency regulations to combat financial crimes, according to Adedeji Owonibi, co-founder of A&D Forensics, a Nigerian blockchain intelligence service provider. Despite the Central Bank of Nigeria (CBN) lifting the crypto transaction ban, compliance training aims to ensure banks adhere to relevant laws when dealing with Virtual Asset Service Providers (VASPs).
Compliance Laws Needed to Stop Money Laundering
Owonibi pointed out that the lack of regulations in Nigeria’s crypto space permits various practices to go unmonitored at a training for cryptocurrency compliance specialists. He emphasized that Nigeria should regulate cryptocurrency activities and set out relevant laws because “if there is no law, there is no offense.”
The compliance training aims to ensure banks follow the laws in their interactions with VASPs after the CBN reversed the crypto transaction ban. Owonibi said financial institutions need compliance specialists to ensure all monies passing through exchanges are not for criminal activities.
CBN Guidelines Allow VASPs to Open Bank Accounts
The CBN had banned banks from operating accounts for cryptocurrency providers. However, it issued new guidelines in December 2022 permitting VASPs to open accounts.
Owonibi said banks must ensure the VASPs are compliant exchanges, preventing them from becoming channels for money laundering, drug sales or terrorism financing.
While Nigeria has been training some law enforcement as compliance specialists, Owonibi said more training is needed to combat financial crimes. The government would need to regulate crypto activities to curb money laundering.
Conclusion
Despite the CBN lifting the banking ban, Nigeria still needs clear cryptocurrency regulations. Compliance training for banks aims to curb illicit activities, but increased oversight and legal frameworks are required to tackle financial crimes in the crypto space. The government is urged to set regulations and ensure security agencies enforce them.
