Nigerian banks tracking clients accounts for crypto trading

Personal accounts with large multi-day inflow and outflow are being tracked at the behest of the country’s central bank.

In Nigeria, commercial banks are starting to monitor accounts that partake in cryptocurrency trading.

The action answers to order from the Central Bank of Nigeria (CBN). It requires all commercial banks to freeze accounts relating to at least two individuals involved in cryptocurrency trading.

As stated in a report by local publication Leadership, an internal memo in one of the banks was towards the employees. The message was to begin monitoring accounts with significant transaction volumes.

Moreover, the document indicates that employees who willfully ignore disclosing an account’s involvement in cryptocurrency trading would receive a penalty. Hence, all workers will now monitor accounts, transactions, and customers. They will ensure that the bank is fully compliant with CBN requirements, as per the internal communication.

Trigger accounts

Accounts that could be hailed include those of fintech companies with a large volume of daily transactions without a payments license or any that have cryptocurrencies in their memorandum or expression of business.

Personal accounts with extensive multi-day inflow and outflow are under the suspicion. Moreover, small companies whose daily sales are higher than what they should be are also a red flag. In extension, accounts that take money from multiple payees and make various payments to several beneficiaries will also be under suspicion. 

The CBN demands began circulating on social media. The message is that the employees should look out for accounts that partake in cryptocurrency trading. Hence, this would be an attack on the central bank’s Feb. 5 order.

Moreover, in a message on Twitter, Senator Ihenyen, who manages the Stakeholders in Blockchain Technology Association of Nigeria, concluded the CBN’s decision as illegal and unfair. As stated by Ihenyen, only the Nigerian legislature can oversee Bitcoin (BTC) regulation.