Nigerian banks tracking crypto trading in customer accounts

Accounts with significant transaction volume or are to be flagged by bank employees

Nigerian commercial banks have started monitoring customer accounts that may be used for cryptocurrency trading.

The Central Bank of Nigeria (CBN) has instructed all commercial banks to carry out the surveillance following news that the CBN ordered all commercial banks to freeze accounts of two individuals that engaged in cryptocurrency trading.

A memo was given to bank employees on their duty to monitor accounts and to shut them down should evidence of crypto trading be found.

“We wish to reiterate that the CBN is strictly monitoring non-compliance with the directive on the closure of all accounts involved in cryptocurrency for high impact regulatory sanction,” the memo read.

In view of the above, all staff are hereby advised to identify entities transacting in or operating cryptocurrency exchanges within their systems and ensure that such accounts are closed immediately.”

Alongside accounts that may be used for crypto trading, accounts of fintech firms with a large volume of daily transactions without a payments license and personal accounts with large deposits going in and out are to be flagged.

The CBN’s February 5 order of the shutdown of accounts tied to cryptocurrency trading activities was said to be violated according to the memo, however, the CBN has insisted that cryptocurrency trading is not banned in Nigeria.

The launch of the eNaira was intended to control the growing cryptocurrency ecosystem in Nigeria and to limit the level of fraudulent behaviour in the digital industry.


Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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