The Economic and Financial Crimes Commission (EFCC) has revealed systemic lapses in Nigeria’s financial sector, disclosing that commercial banks, fintech companies, and microfinance banks facilitated the movement of N162 billion in cryptocurrency transactions and N18.7 billion in fraud proceeds without proper due diligence. The fraudulent activities affected over 900,000 Nigerians.
Speaking at a media briefing in Abuja, EFCC Director of Public Affairs, Wilson Uwujaren, said the Commission’s investigations uncovered major schemes orchestrated by foreign nationals using compromised accounts and deceptive payment systems. One syndicate, operating a fake airline ticket discount platform, defrauded more than 700 victims, siphoning N651.1 million. The EFCC has recovered and returned N33.6 million to affected individuals.
A larger investment scam involved nine companies promising bogus investment packages, defrauding over 900,000 Nigerians of N18.1 billion. Uwujaren explained that some financial institutions compromised standard procedures, allowing fraudsters to convert illicit proceeds into cryptocurrency and transfer them offshore. Alarmingly, one bank allowed a single customer to operate 960 accounts used exclusively for fraudulent purposes.
Uwujaren warned that such negligence would no longer be tolerated. “Deposit Money Banks, Fintechs, Microfinance Banks found to be aiding and abetting fraudsters should be suspended and referred to the EFCC for investigation and possible prosecution,” he said.
The Commission urged regulatory authorities to ensure full compliance with Know Your Customer (KYC) and Customer Due Diligence (CDD) requirements to prevent further economic losses. Uwujaren emphasized that financial institutions must strengthen internal controls to curb illicit transactions, protect consumers, and safeguard the nation’s economy.
The EFCC continues efforts to apprehend foreign suspects linked to these schemes, while prosecuting local accomplices already in custody.
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