The Central Bank of Nigeria has commenced an anti-money laundering, counter-financing of terrorism, and counter-proliferation financing supervision pilot targeting virtual asset service providers, with Flutterwave and Paystack among the six firms selected to participate (alongside cNGN, Juicyway, KoinKoin and KuCoin). The CBN announced the programme on 31 March 2026, about five months after Nigeria was removed from the Financial Action Task Force grey list in October 2025; it had been on the list since February 2023.
Leaving the grey list required stronger anti-money-laundering regimes and improved transparency.
COMPLIANCE OBLIGATIONS FOR PARTICIPATING VASPS
Firms selected for the pilot are required to submit monthly key performance indicator reports to the CBN and must demonstrate credible implementation plans for FATF Travel Rule compliance, which obliges virtual asset service providers to transmit originator and beneficiary information when transferring digital assets above prescribed thresholds. Participating firms will also undergo reviews of governance, customer onboarding, sanctions screening, transaction monitoring and cross-border activities, with the pilot focused on compliance with FATF Recommendations 15 and 16.
Flutterwave and Paystack are among Nigeria's most visible fintech players.
The CBN has said the pilot is meant to help it understand AML/CFT/CPF risks, business models and operational practices across participating firms, and that participation does not confer any licence, regulatory approval or authorisation.
SUPERVISORY ENGAGEMENT
Participants must also engage with the CBN and the Nigerian Financial Intelligence Unit as part of the pilot.
The pilot is structured in phases; the CBN said subsequent phases have already been scheduled and are closed to new applications.
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