Home Banking ABCON supports FG ban of cryptocurrency on anti-money laundering reasons

ABCON supports FG ban of cryptocurrency on anti-money laundering reasons

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As the dust raised by the closure of cryptocurrency traders’ accounts is yet to settle, the Association of Bureaux De Change Operators of Nigeria (ABCON) has given its backing to the Central Bank of Nigeria (CBN) policy. 

According to its President,   Aminu Gwadabe, the regulator acted fast to curtail an emerging dangerous trend capable of eroding Nigeria’s Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT)

He said that before placing a ban on financial dealings that does not conform with the norm, the regulator should have gotten a financial intelligence  on such operations, as seen in kidnappers now collecting Bitcoin for ransom.

Gwadabe said the new changing global behaviour towards cryptocurrency trading in Nigeria is not in tandem with Nigeria’s AML/CFT compliance structure as the country battled to move out of the Financial Action Task Force (FATF) sanctions list.

He said that cryptocurrency trading is so pervasive and widespread that every segment and all operators in the financial industry is becoming vulnerable to their operations that are not guided by regulation.

He said that before placing a ban on financial dealings that does not conform with the norm, the regulator should have gotten a financial intelligence  on such operations, as seen in kidnappers now collecting Bitcoin for ransom.

Gwadabe said the new changing global behaviour towards cryptocurrency trading in Nigeria is not in tandem with Nigeria’s AML/CFT compliance structure as the country battled to move out of the Financial Action Task Force (FATF) sanctions list.

He said that cryptocurrency trading is so pervasive and widespread that every segment and all operators in the financial industry is becoming vulnerable to their operations that are not guided by regulation.

That is why many financial sector regulators, prominent financial institutions including global banks, and investment firms are moving swiftly against the cryptocurrency operators .

“All over the world, no regulatory institution has given a fiat approval of the new digital money due to its vulnerability to money laundering and counter terrorism financing. It is therefore the belief of our Association that the measures of the CBN will ensure confidence of our foreign partners to boost economic growth,” Gwadabe stated.

According to the ABCON boss, rather than criticising the CBN, the nay sayers should have advised government to introduce Digital Agri-business to Nigeria’s teeming youth for capacity and self employment.

“We, therefore, support the CBN measures and urge the apex bank to support a paradigm shift in Bureaux de Change (BDCs) business where we are moving from traditional bricks and mortar operations to a digitized model that boosts  transparency, foreign capital inflows and  ease of monitoring and supervision of our operations,” he said.

According to Gwadabe, the BDCs have so far introduced four factors authentication digital applications in their operations to improve efficiency and transparency in operations.

THE SUN

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