CBN Launches AML Pilot for Flutterwave, Paystack, Others

The Central Bank of Nigeria has introduced a pilot supervisory programme focused on strengthening anti-money laundering and financial crime controls among selected virtual asset service providers, including Flutterwave and Paystack.

In a statement, the apex bank said the initiative targets Anti-Money Laundering, Counter-Financing of Terrorism, and Counter-Proliferation Financing frameworks within the fast-growing digital payments and virtual asset ecosystem. The move forms part of broader efforts to reinforce oversight and stability across Nigeria’s financial system.

Read Also:

• Nigeria gas output hits 7.5bcf/d, targets 12bcf/d by 2030
• NUPRC Shortlists Bidders for Nigeria’s Oil Licensing Round

According to the regulator, the pilot adopts a risk-based supervisory approach aimed at improving transparency and aligning operators with global compliance standards. It stressed that the programme is not intended to replace or override existing regulations governing virtual assets or the responsibilities of other regulatory bodies.

“This pilot does not alter, replace, or supersede the existing regulatory framework governing virtual assets in Nigeria or the mandates of other competent authorities,” the bank stated.

The initiative is expected to deepen regulatory understanding of how virtual asset operators function, while also helping participating firms strengthen their internal compliance systems.

“The Pilot is designed to develop a structured understanding of AML/CFT/CPF risks, business models, and operational practices across participating entities,” the CBN said, adding that it would also support firms in improving their frameworks in line with evolving supervisory expectations.

The programme is anchored on key legal and regulatory frameworks, including the Money Laundering (Prevention and Prohibition) Act 2022 and the Banks and Other Financial Institutions Act 2020, while also aligning with global standards such as the Financial Action Task Force recommendations on virtual assets.

Under the pilot, participating firms will be required to submit periodic compliance data, engage regulators in supervisory reviews, and strengthen processes around customer onboarding, transaction monitoring, and cross-border operations. They are also expected to provide implementation plans for global compliance measures such as the “Travel Rule.”

The development comes amid heightened regulatory focus on digital finance and cybersecurity risks. Recently, the apex bank introduced a Cybersecurity Self-Assessment Tool to evaluate how financial institutions manage threats, respond to incidents, and oversee third-party technology risks.

While the pilot involves selected firms in its initial phase, the regulator indicated that the programme will be expanded in stages. It also reassured that all information submitted during the process will be treated as confidential and handled in line with Nigeria’s data protection laws.

The move signals a tightening of oversight in Nigeria’s fintech and virtual asset space, as authorities seek to balance innovation with stronger safeguards against financial crime.