Central Bank of Nigeria calls for regulation of virtual currencies

The Central Bank of Nigeria (CBN) has called for regulation of virtual currencies in a bid to save the country from money laundering.

Mr. Okwu Nnanna, CBN Deputy Governor, Financial System Stability, spoke about this at the 2nd Anti-Money Laundering/ Combating Financial Terrorism Stakeholders Consultative Workshop organised by Association of Certified Anti-Money Laundering Specialist, ACAMS, in Abuja.

He described virtual currency as a type of unregulated, digital money, usually issued and controlled by its developers, and that such currencies were usually used and accepted among members of a specific community.

Nnanna said: "Virtual currency is not a legal tender of any country; hence it has a borderless nature without jurisdiction, which makes it a channel for money laundering.

"The Financial Action Task Force, FATF, has observed that Virtual Currency Payment Products and Services, VCPPS, present opportunity for money laundering and other crime risks that must be identified and mitigated. So, in order to curb money laundering, virtual currencies should be regulated.

"Virtual currencies present a wide range of issues and challenges that require financial authorities to consider and the challenges posed are unique and call for urgent regulator responses.

"I want to join voice with FATF to urge industry players to cooperate and work actively together to address the concerns and challenges raised by the use of virtual currencies in the global financial market.''

Speaking during the event, former Chairman of Economic and Financial Crime Commission, EFCC, Mallam Nuhu Ribadu, said that terrorism and money laundering were major contributing factors to Nigeria's problem.

"All that is wrong with Nigeria is dirty money, follow the dirty money, get the criminals and prosecute them", he said and added, "When I look around I see a lot of investments that was done with dirty money. Government needs help in identifying and catching these people. Though it may seem like a daunting task, but with professionals like ACAMS, Nigeria is already poised to achieving this".