The Economic and Financial Crimes Commission (EFCC) has implicated a new-generation commercial bank, six fintech companies, and some microfinance banks in large-scale fraud involving cryptocurrency transactions worth N162 billion.
Okay News reports that EFCC Director of Public Affairs Mr. Wilson Uwujaren accused the unnamed institutions of failing to conduct adequate customer due diligence during a press briefing at the commission’s headquarters in Abuja on Thursday.
Uwujaren stated that the institutions allowed suspicious transactions to pass through their platforms in the 2024/2025 financial year, violating Know-Your-Customer (KYC) and anti-money laundering regulations.
Investigations revealed weaknesses in internal controls, enabling criminals to convert fraud proceeds into digital assets and transfer them to undisclosed destinations.
“A total sum of N18.1 billion was moved through the financial system without due diligence of customers by the banks,” he said.
“It is particularly worrisome that cryptocurrency transactions amounting to N162 billion passed through a new-generation bank without any form of due diligence.”
The commission uncovered a case where one individual operated 960 accounts in a single bank, all allegedly used for fraudulent activities.
“This is bad news, but the good news is that following our intervention, the Commission has been able to recover N33.62 million, which has already been returned to some of the victims,” Uwujaren noted.
Ongoing probes revealed two major scams: an airline ticket discount scheme defrauding over 700 victims of N651 million, masterminded by a foreign national, and the Fred and Farid Investment Limited (FF Investment) platform, which defrauded more than 200,000 Nigerians of approximately N18 billion through fake investments via multiple companies including Credio Banco Limited, Deliberty Rock Limited, and others.
Foreign nationals led the FF scheme with three Nigerian accomplices arrested and charged; the masterminds remain at large.
Uwujaren called on regulators to enforce stricter compliance in KYC, Customer Due Diligence (CDD), and Suspicious Transaction Reports (STRs), urging suspension and referral to EFCC of any banks, fintechs, or microfinance banks aiding fraudsters.
He warned that failure to monitor suspicious transactions exposes the economy to systemic risks.
As part of its anti-corruption efforts, the EFCC announced on Wednesday the recovery of N1.234 billion from Sujimoto Luxury Construction Limited, returned to the Enugu State Government after the company failed to honour a contract for 22 smart schools despite receiving over N2.28 billion in advance.
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