EXAMINATION OF CRYPTOCURRENCY AS A MEANS OF MONEY LAUNDERING IN NIGERIA
Abstract
ABSTRACT
This research examines the use of cryptocurrency as a means of money laundering in Nigeria, focusing on the legal, regulatory, and enforcement challenges associated with this emerging financial technology. The rapid growth of cryptocurrencies such as Bitcoin and Ethereum has transformed the global financial system by enabling decentralized, fast, and borderless transactions. However, their pseudo-anonymous nature and lack of centralized control have made them attractive tools for illicit financial activities, particularly money laundering. The study adopts a doctrinal research methodology, relying on primary sources such as Nigerian statutes, including the Money Laundering (Prevention and Prohibition) Act, 2022, the Cybercrimes Act, 2015, and relevant regulatory guidelines, as well as secondary sources like textbooks, journal articles, and reports from international organizations such as the Financial Action Task Force (FATF). It critically analyzes the adequacy of Nigeria’s existing legal and institutional frameworks in addressing cryptocurrency-related money laundering.Findings reveal that although Nigeria has established several anti-money laundering laws and institutions, there are significant gaps in their application to cryptocurrencies. The decentralized and borderless nature of digital currencies, coupled with the rise of peer-to-peer trading platforms, poses serious challenges to effective regulation, monitoring, and enforcement. Additionally, limited technical expertise and lack of comprehensive legal provisions specifically targeting cryptocurrencies further weaken the regulatory framework. The study concludes that while cryptocurrencies offer significant economic opportunities, their misuse for money laundering poses risks to Nigeria’s financial system and economic stability. It recommends the development of a comprehensive legal framework specifically tailored to digital assets, enhanced regulatory coordination, capacity building for law enforcement agencies, and stronger international cooperation to effectively combat cryptocurrency-related financial crimes.
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