WorldStage Newsonine– The Securities and Exchange Commission (SEC) has called on stakeholders in the capital market to align their regulatory frameworks with the Financial Action Task Force (FATF) standards in order to maintain the integrity of the capital market and protect Nigeria’s financial system.
The commission’s Director-General, Dr Emomotimi Agama who made this appeal during the 2024 Compliance Summit organised by the Nigerian Capital Market Institute (NCMI), a subsidiary of SEC in Lagos explained that the FATF guidance provides a framework for countries to implement effective regulations and address risks associated with virtual assets.
The theme of the summit is, “Navigating Regulatory Challenges: Aligning with Changes in FATF Standards in the Era of Virtual Asset Service Providers”.
As virtual assets continue to gain prominence, Agama highlighted the need for proactive engagement with FATF standards to navigate regulatory challenges.
He stressed the importance of collaboration among regulators, virtual asset service providers (VASPs), and stakeholders to ensure effective implementation.
The DG, however, said the event was a demonstration of the stakeholders’ commitment in ensuring that the Nigerian capital market remains at the vanguard of global financial integrity.
According to him, this will also be achived through efficiency, by fostering conducive environment to progress and innovation.
He also said that the rapid evolution of virtual assets and the emergence of related service providers had brought considerable changes to the financial landscape.
“The summit will explore critical topics such as the unique regulatory implications posed by virtual assets service providers, importance of compliance in safeguarding our markets.
“It will also strategies for implementing effective risk management protocols.
“We shall also be graced with presentations and discussions on these issues from leading experts and professionals, who will share their experiences on industry best practice and regulatory developments,” he said.
Agama outlined key updates in FATF standards, including the expanded definition of VASPs, the inclusion of custodial wallet providers, exchanges, and peer-to-peer platforms as VASPs, and the Travel Rule.
In her a goodwill message, Director, Nigerian Financial Intelligence Unit (NFIU), Ms Hafsat Bakari, highlighted the need for robust and effective regulatory frameworks to address the challenges posed by emerging financial products and services.
“As regulators, law enforcement agencies, we must ensure our regulatory frameworks remain robust and effective,” she said.
Represented by Dr Mohammad Jiya, Chief Operating Officer, Emerging Technologies and Innovations, NFIU, Bakari disclosed that the updated FATF standards requires continuous efforts to tackle challenges posed by the emerging financial products and services.
“It is important to put necessary measures in place for the next Mutual Evaluation of the country’s AML/CFT/CPE Regime by FATF, which is scheduled to take place in 2027.
“NFIU remains fully committed to collaborate with stakeholders, including SEC, financial institutions, and law enforcement agencies, to enhance the effectiveness of our AML/CFT systems,” she said.
FATF was established in 1989, to set global standards for combating money laundering, terrorist financing and proliferation financing.
