The Economic and Financial Crimes Commission (EFCC) has called for the suspension and prosecution of deposit money banks, fintech companies, and microfinance banks found to be aiding fraudsters in defrauding Nigerians through large-scale financial scams.
The Director of Public Affairs of the EFCC, Wilson Uwujaren, made this call in Abuja during a news briefing, where he disclosed findings from investigations into negligence and compromise within Nigeria’s financial system. According to him, the commission uncovered an N18.7 billion investment scam and fraudulent cryptocurrency transactions amounting to N162 billion.
Uwujaren alleged that one new-generation bank, six fintech firms, and several microfinance banks assisted fraudsters in laundering proceeds of crime. He described it as alarming that cryptocurrency transactions worth N162 billion passed through a single bank without proper due diligence. He further revealed that one customer operated 960 accounts within the bank, all allegedly used for fraudulent activities.
He said the institutions compromised standard banking procedures, enabling fraudsters to convert illicit funds into digital assets and move them beyond reach. Consequently, the EFCC urged regulators to enforce strict compliance with Know Your Customer (KYC), Customer Due Diligence (CDD), and Suspicious Transaction Reporting (STR) requirements. Institutions found culpable, he said, should be suspended and referred to the EFCC for investigation and prosecution.
Uwujaren explained that the N18.7 billion scams involved two schemes. The first was an airline ticket discount fraud that deceived over 700 victims, resulting in losses of N651.1 million, although N33.63 million had been recovered and returned. The second involved Fred and Farid Investment Limited (FF Investment), which allegedly defrauded over 200,000 victims of N18.1 billion through fake investment packages.
He disclosed that foreign nationals masterminded the schemes, with three Nigerian accomplices already arrested and charged to court.
