The Economic and Financial Crimes Commission (EFCC) has urged regulators to suspend and prosecute deposit banks, Fintechs, and microfinance institutions that facilitate fraudsters in defrauding Nigerians.
The call was made on Friday in Abuja by the Commission’s Director of Public Affairs, Wilson Uwujaren, during a news briefing on financial institutions’ negligence and compromise, which have cost victims billions of naira.
Uwujaren disclosed that investigations uncovered widespread compromise in the financial system, including an N18.7 billion investment scam and fraudulent cryptocurrency transactions worth N162 billion. He accused one new-generation bank, six Fintechs, and some microfinance banks of aiding fraudsters in laundering illicit funds.
“It is worrisome that investigations showed cryptocurrency transactions of N162 billion passed through a new generation bank without due diligence. A single customer maintained 960 accounts, all used for fraudulent purposes,” he said, adding that the institutions compromised banking procedures to allow fraudsters safely move their ill-gotten gains.
The EFCC called on regulatory bodies to enforce compliance with regulations on Know Your Customer (KYC), Customer Due Diligence (CDD), and Suspicious Transaction Reports (STRs). “Deposit money banks, Fintechs, and microfinance banks found aiding fraudsters should be suspended and referred to the EFCC for thorough investigation and possible prosecution,” Uwujaren said.
He explained that the N18.7 billion scams were carried out in two ways. The first involved a syndicate using a bogus airline discount scheme to trick victims, draining 700 people of N651.1 million. “They advertise discounts for flight tickets, convincing victims that payments go to the airline, but the funds are stolen,” Uwujaren said.
The second scheme involved Fred and Farid Investment Limited (FF Investment), which lured more than 200,000 Nigerians into fake investment packages, amassing N18.1 billion across nine companies. Foreign nationals orchestrated the schemes with three Nigerian accomplices already arrested and charged in court.
Uwujaren said the EFCC has recovered and returned N33.63 million to victims, warning Nigerians to remain vigilant against fraudulent schemes.
