By Tunde Oso

One year after the Central Bank of Nigeria (CBN), imposed a ban on cryptocurrencies, experts have advised the Federal Government to reconsider its stand, while proposing tougher measures against infractions.

The experts gave the advice at the fifth annual Anti-Fraud Conference of the Association of Certified Fraud Examiners, ACFE Lagos chapter, that was held virtually recently.

In his presentation, Senior Partner, Financial Forensic at A&D Forensics, Adedeji Owonibi urged the government to tighten the noose against fraudulent acts on crypto platforms rather than settling for an outright ban.

According to him, the CBN should devote more time and resources to guiding and monitoring banks, adding that a lot of financial institutions still engage in the deal secretly in spite of the ban.

To arrest exploitation by criminals, Owonibi wants banks to raise their game, as well as equip certified fraud examiners, CFEs with the right tools and knowledge to contain irregularities on crypto transactions.

He said, “more than before, financial institutions need to identify and report suspicious activities on how criminals and other actors exploit cryptocurrency for money laundering, sanction evasion and other illicit financial purposes.

“This applies to all financial institutions regardless of whether they directly buy, sell, provide custody or have virtual currency exchange as customers. More so, both banks and practitioners must be able to identify accounts operated by Virtual Asset Service Providers (VASPs) and conduct enhanced due diligence on customers accounts transacting with VASPs.

In the same vein, 2nd First Vice President of ACFE, Lagos chapter , Dr. Titilayo Fowokan averred that cryptocurrency has become a global phenomenon which cannot be stopped as a result of local ban.

She maintained: “Rather than the ban on cryptocurrency, CFEs can do a lot to help the government detect and curb fraudulent practices within the digital economy. The fact that most transactions pass through the banking system gives opportunity for tracking fraudulent practices through cryptocurrency activities.

The association’s 1st Vice President, Don Ogbonnaya reiterated the need for organisations to put in place effective checks and control mechanisms, as well as effective and routine documents examination as part of their internal audit programme.