By Tony Obiechina, Abuja
The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama has stressed the need for stakeholders to adapt regulatory frameworks to align with the evolving Financial Action Task Force, FATF, standards.
According to him, failure to do so would not only jeopardize the integrity of the capital markets, but also pose a risk to Nigeria and the global financial system.
He stated this at the Compliance Summit 2024 organised by the Nigerian Capital Market Institute, a subsidiary of the SEC, with the theme: Navigating Regulatory Challenges: Aligning with Changes in FATF Standards in the Era of Virtual Asset Service Providers held in Lagos, Monday.
FATF guidance helps countries implement effective regulations, addressing risks associated with virtual assets.
Agama said as virtual assets continue to gain prominence, navigating regulatory challenges in the space requires proactive engagement with FATF standards adding that collaboration between regulators, VASPs and stakeholders ensures effective implementation.
Agama said the event is a testament to the collective commitment by stakeholders to ensuring that the Nigerian capital market remains at the vanguard of global financial integrity and efficiency, while fostering an environment conducive to progress and innovation.
He disclosed that the rapid evolution of virtual assets and the emergence of the related service providers have brought considerable changes to the financial landscape, creating opportunities and, invariably, carrying with it untold regulatory challenges that necessitate our immediate and appropriate attention.
He said, “During this summit, we will explore critical topics such as the unique regulatory implications posed by virtual assets service providers, the importance of compliance in safeguarding our markets, and strategies for implementing effective risk management protocols.
“We will be graced with presentations and discussions on these issues from leading experts and professionals, who will share their insights and experiences on industry best practice and regulatory developments”.
The SEC DG said the Summit serves as a platform for all stakeholders—regulators, operators, financial institutions, and technology innovators—to collaborate, share knowledge and chart the way forward as may be collectively desirable adding that all must therefore harness the strength of collective expertise to navigate the regulatory challenges ahead.
He said some recent changes in FATF standards significantly impact virtual asset service providers and these key updates include: Expanded VASP definition: Custodial wallet providers, exchanges and peer-to-peer platforms are now recognized as VASPs, Travel Rule: VASPs must share customer information during transactions, enhancing transparency, Licensing and registration: VASPs must register and obtain licenses, ensuring accountability and Enhanced AML/CFT measures: Strengthened regulations combat money laundering and terrorist financing.
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