The Economic and Financial Crimes Commission (EFCC) has implicated a new-generation commercial bank, six fintech companies and several microfinance banks in large-scale financial scams involving the laundering of huge sums of money.
The Director of Public Affairs of the Commission, Mr Wilson Uwujaren, disclosed this on Thursday during a press briefing at the EFCC headquarters in Abuja.
Uwujaren revealed that the affected financial institutions allegedly allowed cryptocurrency transactions amounting to ₦162 billion to pass through their systems without adequate due diligence during the 2024/2025 financial year.
According to him, investigations showed that the institutions compromised standard banking procedures, enabling fraudsters to convert illicit funds into digital assets and move them to secure destinations.
“A total sum of ₦18.1 billion was moved through the financial system without proper customer due diligence by the banks. It is worrisome that investigations showed cryptocurrency transactions to the tune of ₦162 billion passed through a new-generation bank without any due diligence,” Uwujaren said.
He further disclosed that investigations uncovered a case where a single customer operated 960 accounts in another new-generation bank, all of which were allegedly used for fraudulent activities.
Despite the scale of the fraud, Uwujaren said the commission had recorded some successes, noting that ₦33.62 million had so far been recovered and returned to some victims.
The EFCC spokesman explained that the scams were carried out through two major schemes. The first involved a syndicate that used a fake airline discount scheme to defraud unsuspecting victims.
According to him, the fraudsters advertised discounted flight tickets for a foreign airline. While victims were made to believe payments were going directly to the airline, the scheme was designed to empty the victims’ bank accounts after payment.
“Investigations showed that more than 700 victims have been scammed so far, with losses amounting to ₦651 million,” he said, adding that the scheme was masterminded by a foreign national currently at large. The commission, however, has recovered and refunded ₦33 million to victims.
The second scheme involved a company identified as Fred and Farid Investment Limited, popularly known as FF Investment, which allegedly lured Nigerians into a fraudulent investment arrangement.
Uwujaren said over 200,000 victims were defrauded through the scheme, with about ₦18 billion siphoned through nine companies offering various fake investment packages.
The companies listed include Credio Banco Limited, Deliberty Rock Limited, Liam Chumeks Global Service, Ngwuoke Daniels Technology, Icons Autos and Import Merchant, Newpace Technology Services Limited, Primepath Ways Ventures Limited, Kaka Synergy Network Limited and Sunlight Tech Hub Services Limited.
He said foreign nationals were behind the operations, while three Nigerian accomplices had been arrested and charged to court. The masterminds, he added, were still on the run, with efforts ongoing to apprehend them.
Uwujaren called on regulatory authorities to compel financial institutions to strictly comply with regulations on Know-Your-Customer (KYC), Customer Due Diligence (CDD) and Suspicious Transaction Reports (STRs).
He warned that deposit money banks, fintech companies and microfinance banks found to be aiding fraudsters should be suspended and referred to the EFCC for thorough investigation and possible prosecution.
“Negligence and failure to monitor suspicious and structured transactions by banks should no longer be tolerated,” he said.
The EFCC spokesman also cautioned members of the public to be vigilant, assuring that the commission would continue its crackdown on money laundering and financial crimes.
Uwujaren urged financial institutions to strengthen their operational systems to prevent leakages and compromises that he said were bleeding the Nigerian economy.
(NAN)