Nigerian Banks Track Accounts Receivable For Crypto Trading

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In Nigeria, commercial banks have started monitoring accounts that appear to be used for cryptocurrency trading.

The action follows an order from the Central Bank of Nigeria (CBN) requiring all commercial banks to freeze accounts belonging to at least two people involved in cryptocurrency trading.

According to a report from the local Leadership publication, an internal memo from one of the banks instructed employees to start monitoring accounts with large transaction volumes or those that would be used for cryptocurrency trading. The rating, according to Leadership, reads as follows:

We would like to reiterate that the CBN strictly monitors non-compliance with the directive on closing all accounts involved in cryptocurrency for high impact regulatory sanction. In view of the above, it is recommended that all staff members identify the entities transacting or operating cryptocurrency exchanges within their systems and ensure that such accounts are closed immediately.

The document pointed out that employees who intentionally neglect to disclose an account’s involvement in cryptocurrency trading would be penalized. All workers are now required to participate in account, transaction and customer monitoring to ensure the bank is fully compliant with CBN requirements, in accordance with internal communication.

Accounts that could be flagged include those of fintech companies with a large volume of daily transactions without a payment license or those that contain cryptocurrencies in their memorandum or expression of activity.

Person accounts with large inflows and outflows over multiple days, as well as small businesses with more daily sales than they should be, should also be reported. In addition, accounts that receive a lot of money from multiple beneficiaries and make a lot of payments to multiple beneficiaries will also be suspect.

E-Naira has died on arrival now that they are attacking young people who believe in crypto! Sad that my Naira account which I use to support family in Nigeria was blocked by the confused CBN yesterday. Once again, companies are starting to accept crypto, it’s over for them.

– BitcoinChief (TATCOIN TRADER) (@gaiuschibueze) November 10, 2021

The CBN claims in the letter, which began circulating on social media less than a week after eNaira’s launch, that the accounts are used for cryptocurrency trading and thus violate the central banks’ order. February 5.

In a Twitter post, Senator Ihenyen, who heads the Stakeholders in Blockchain Technology Association of Nigeria, called CBN’s decision illegal and unfair. According to Ihenyen, only the Nigerian legislature has the power to oversee Bitcoin (BTC) regulation.

It is unduly discriminatory and unconstitutional. It is not regulation but oppression. Where is @nassnigeria? The action of @cenbank is ultra vires. It must stop. We are not in a lawless country. Only the National Assembly can illegalize cryptocurrency. # Endcbnoppression pic.twitter.com/VjxmhjR6g6

– Senator Ihenyen (@SenatorIhenyen) November 8, 2021

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