EFCC warns banks, fintechs, and microfinance banks aiding fraudsters, citing N18.7bn investment scams and N162bn crypto laundering, urging suspension and prosecution
The Economic and Financial Crimes Commission (EFCC) has called for the suspension and prosecution of banks, fintechs, and microfinance institutions found to be aiding fraudsters defrauding Nigerians.
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Wilson Uwujaren, EFCC Director of Public Affairs, made the announcement on Friday in Abuja, highlighting widespread compromise in the country’s financial system.
Investigations uncovered an N18.7 billion investment scam and fraudulent cryptocurrency transactions totaling N162 billion.
Uwujaren said one new generation bank, six fintechs, and several microfinance banks were implicated in laundering the proceeds of fraudsters.
“It is worrisome that investigations by the commission showed cryptocurrency transactions to the tune of N162 billion passed through a new generation bank without any due diligence.
Investigations also showed that a single customer maintained 960 accounts in the new generation bank, all used for fraudulent purposes,” he stated.
The EFCC accused the financial institutions of compromising banking procedures, allowing scammers to convert ill-gotten funds into digital assets and transfer them to safe destinations.
“The Commission is calling on regulatory bodies to enforce compulsory compliance with regulations including Know Your Customer (KYC), Customer Due Diligence (CDD), and Suspicious Transaction Reports (STRs).
Deposit money banks, fintechs, and microfinance banks found to be aiding fraudsters should be suspended and referred to the EFCC for thorough investigation and possible prosecution,” Uwujaren added.
The N18.7 billion scams were divided into two categories. The first involved an airline discount scheme that tricked over 700 victims, resulting in N651.1 million in losses.
Payments were falsely processed as airline transactions, allowing scammers to empty victims’ accounts.
The second scheme involved Fred and Farid Investment Limited (FF Investment), which defrauded over 200,000 Nigerians through bogus investment packages, raising N18.1 billion via nine companies.
Uwujaren confirmed that foreign nationals orchestrated the schemes with three Nigerian accomplices arrested and charged to court.
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The EFCC reported recovering N33.63 million from the scams and returned it to victims, urging Nigerians to exercise vigilance and caution in financial transactions.
