The Economic and Financial Crimes Commission (EFCC) has
accused banks, fintech companies and microfinance institutions of enabling
large-scale fraud by failing to carry out basic customer due diligence.
Wilson Uwujaren, the commission’s director of public
affairs, made the allegation on Thursday during a media briefing in Abuja,
where he disclosed findings from investigations into two major fraud schemes
that affected more than 900,000 Nigerians.
Uwujaren said investigations showed that a “new generation
bank”, six fintechs and microfinance banks compromised standard banking
procedures, allowing fraud proceeds to be converted into digital assets and
transferred to “safe destinations” without triggering red flags.
“A total sum of N18,739,999,027.35 passed through our
financial system without due diligence by banks,” he said.
He noted that cryptocurrency transactions worth N162 billion
were processed through a single bank without proper Know Your Customer (KYC)
checks, while another bank allowed a single customer to operate 960 accounts
“exclusively used for fraudulent activities”.
The EFCC said the funds were linked to two major criminal
schemes; the first involved an airline discount fraud in which victims were
lured with fake discounted ticket offers.
Payments were allegedly structured to appear as though they
were made to legitimate airline accounts, but victims’ bank accounts were
subsequently emptied.
Uwujaren said more than 700 victims lost a total of
N651,097,755 to the scheme, though only N33.6 million has so far been recovered
and returned to victims.
He said Investigations showed the fraud was masterminded by
foreign nationals who recruited young Nigerians and used cryptocurrency, routed
through Bybit, to move proceeds.
The second scheme involved an investment operation linked to
Fred and Farid Investment Limited, also known as FF Investment, and eight other
companies.
According to the EFCC, over 200,000 Nigerians were defrauded
of N18.08 billion through multiple fake investment packages.
The other companies are 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.
The commission said three Nigerian accomplices had been
arrested and charged to court, while foreign masterminds behind the investment
scheme remain at large.
Uwujaren warned that financial institutions found to be
aiding or abetting fraud could face suspension and prosecution.
He called on regulators to enforce strict compliance with
KYC, customer due diligence and suspicious transaction reporting requirements.
“Negligence and failure to monitor suspicious and structured
transactions by banks should no longer be allowed,” he said.
Uwujaren added that the EFCC would intensify its crackdown
on money laundering and digital asset abuse.
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