Cryptocurrencies Ban will Boost Anti-Money Laundering Compliance – ABCON

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Nwolu Obiajulu

Obiajulu Nwolu is an established writer at africannewstoday.com. He is passionate about African affairs. He loves writing about interesting facts relating to the African continent and enjoys sharing his knowledge with others.

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The Association of Bureaux De Change Operators of Nigeria, ABCON, has backed the Central Bank of Nigeria’s order directing banks to close all accounts belonging to cryptocurrency traders.

This was contained in a statement issued on Sunday titled,  ‘ABCON backs CBN’s cryptocurrency trading ban for stronger anti-money laundering compliance’.

According to Alhaji Aminu Gwadabe, ABCON President, the regulator acted fast to curtail an emerging dangerous trend capable of eroding Nigeria’s Anti-Money Laundering and Counter-Terrorist Financing gains.

He said that before placing a ban on financial dealings that did not conform with the norm, the regulator must have got a financial intelligence on such operations, as seen in kidnappers now collecting bitcoin for ransom.

Gwadabe stated that the new changing global behaviour towards cryptocurrency trading in Nigeria was not in accordance with Nigeria’s AML/CFT compliance structure as the country battled to move out of the Financial Action Task Force sanctions list.

He said, “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 the confidence of our foreign partners to boost economic growth.”

The ABCON boss said that instead of condemning the CBN, Nigerians who oppose the policy should have advised the government to introduce digital agri-business to Nigeria’s teeming youth for capacity and self-employment.

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

He conveyed the support of ABCON leadership to CBN’s ongoing clampdown on cryptocurrency trading and believes that money laundering through the channel or any other financial institutions is unacceptable and those found wanting should face the wrought of the law.