Circular to Banks and Financial Institutions on Virtual Currency Operation

Transactions using virtual currencies are untraceable and anonymous, increasing risks of money laundering and financing of terrorism. They are also traded on exchange platforms that are unregulated, leaving consumers unprotected. The increasing use of virtual currencies hence calls for appropriate action by regulators to protect the Nigerian financial system. Until CBN takes substantive action, all banks and financial institutions are required to:

  • Not use, hold, trade and/or transact virtual currencies.
  • Ensure their existing customers that are virtual currency exchangers have effective AML/CFT controls that allow them to comply with customer identification, verification, and transaction monitoring requirements.
  • Discontinue any relationship where virtual currency exchangers do not have appropriate controls.
  • Report suspicious transaction by these customers the Nigerian Financial Intelligence Unit.

Document Details

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2017
Date of Document: 
Thursday, January 12, 2017

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