Dr. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), emphasized the necessity for capital market stakeholders to adapt to regulatory frameworks in line with the evolving Financial Action Task Force (FATF) standards. Speaking at the Compliance Summit 2024 in Lagos, he warned that non-compliance could jeopardize the integrity of Nigeria’s capital markets and pose risks to both national and global financial systems.
The summit, themed “Navigating Regulatory Challenges: Aligning with Changes in FATF Standards in the Era of Virtual Asset Service Providers,” focused on the increasing prominence of virtual assets and the regulatory challenges they present. Agama highlighted the importance of proactive engagement with FATF standards, stating that collaboration between regulators, virtual asset service providers (VASPs), and stakeholders is essential for effective implementation.
He noted, “This event demonstrates our collective commitment to ensuring that the Nigerian capital market remains at the forefront of global financial integrity and efficiency.” The summit provided a platform for stakeholders—including regulators, operators, financial institutions, and technology innovators—to collaborate and share insights.
Agama outlined key updates in FATF standards that impact VASPs, including:
- Expanded VASP Definition: Custodial wallet providers, exchanges, and peer-to-peer platforms are now officially recognized as VASPs.
- Travel Rule: VASPs are required to share customer information during transactions, enhancing transparency.
- Licensing and Registration: VASPs must obtain licenses and register, ensuring accountability.
- Enhanced AML/CFT Measures: Strengthened regulations are in place to combat money laundering and terrorist financing.
He reiterated the importance of harnessing collective expertise to navigate the regulatory challenges ahead, reinforcing that adherence to these standards is crucial for the growth and stability of the financial sector.