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Nigerian banks tracking customers suspects of crypto trading

Nigerian banks tracking customers suspects of crypto trading

The Central Bank of Nigeria ordered all banks to track the bank accounts of their customers and freeze them if found involved in crypto. 

Recently, the Central Bank of Nigeria ordered one of the Commercial Banks of the country to freeze and suspend accounts of few companies, which are involved in providing crypto services like trading. 

As per the law of the Nigerian government authorities, no one bank is allowed to support crypto services to facilitate payment regarding crypto operations. However, retail traders are dependent on the P2P method to buy Coins. 

Reports also confirmed that one of the insiders instructed the employees of the commercial banks on how they can track their customers whether they are involved in crypto or not. 

As per the order by CBN, Banks should trace the details of the fund transactions. If any Bank account users will facilitate a high amount of funds without having a license for the proper non-crypto business. 

CBN also said that if any person will receive huge funds from multiple sources and send them to multiple people, then that person’s account will be under the red flag. 

Local news publication reported that an internal memo in one of the banks instructed employees and memo read: 

“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. Given 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.”

The memo also emphasized that if any employee will not follow the order of CBN to report such activities then that person will be punished by authorities. 

At present, Fintech firms are only allowed to facilitate crypto- fiat-based bulk transactions with suitable licenses. 

Read also: crypto-assets ban for Muslims in Indonesia: Indonesian Religious Council