On Tuesday, the Central Bank of Nigeria (CBN) released a
circular that barred deposit money banks and all other financial institutions
from the operation of any form of virtual currency. The circular was signed the
CBN Director of Financial Policy and Regulation Department, Mr. Kevin Amugo.
Virtual currencies (VCs) such as bitcoin, ripples, magneto,
litecoin, dogecoin, peercoin, one-line, and others, have not been recognised as
legal tender in Nigeria but which are already being traded in exchange
platforms that are unregulated all over the world.
The circular stated in part: "The attention of banks and
other financial institutions is hereby drawn to the above risks and you are
required to take the following actions pending substantive regulation decision
by the CBN.
"Ensure that you do not use, hold, trade, and/ or transact
in anyway in virtual currencies; Ensure that existing customers, that are
virtual customers exchangers, have effective AML/CFT controls that enables them
to comply with customers’ identification, verification and transaction
monitoring requirements."
Others directives include: "Where banks or financial
institutions are not satisfied with controls put in place by the virtual
currency exchangers/customers the relationship should be discontinued
immediately, and lastly, Any suspicious transactions by these customers should
immediately be reported to the Nigerian Financial Intelligence Unit (NFIU)."
0 Comments