The Economic and Financial Crimes Commission (EFCC) has implicated a new generation bank, six Fintechs and microfinance banks in major financial scams by allowing fraudsters to launder huge sums of money.
Spokesperson of the Commission, Wilson Uwujaren, made this known in Abuja on Thursday.
Uwujare said the compromised institutions allegedly allowed cryptocurrency transactions worth N162 billion to pass through without proper due diligence within the 2024/2025 financial year.
He said the financial institutions clearly compromised banking procedures and allowed the fraudsters to safely change their ill-gotten gains into digital assets and move them to safe destinations.
He said “N18.1 billion was moved through the financial system without due diligence of customers by the banks.
“It is worrisome that investigations by the commission showed that cryptocurrency transactions of N162 billion passed through a new generation bank without any due diligence.
“Investigations showed that a single customer maintained 960 accounts in another new bank and all the accounts were used for fraudulent purposes.
“That is bad news but the good news is that following our intervention the commission has been able to recover N33.62 million, which has been returned to some of the victims.”
He explained that the scams were in two categories, adding that the first was a syndicate of fraudsters that employed an airline discount scheme to lure their victims.
He said that they advertised a discount system for the purchase of flight tickets of a particular foreign carrier.
“The payment module is designed in such a way that the victims’ payment is actually made into the account of the airline.
“After payment is made the passenger’s entire funds in his bank account are emptied.
“Investigations showed that more than 700 victims have been scammed so far, with a loss of N651 million,” he said.
According to him, investigations show that the scheme is being masterminded by a foreign national; the commission has so far recovered and released N33 million to victims of the fraud.
He said another scheme involved a company named Fred and Farid Investment Limited, simply called FF Investment, which lured Nigerians into a bogus investment arrangement.
“More than 200,000 victims have been defrauded in this regard. A total sum of N18 billion was raked in through nine companies offering diverse investment packages.
“The companies are Credio Banco Limited; Deliberty Rock Limited; Liam Chumeks Global Service; Ngwuoke Daniels Technology; and Icons Autos and Import Merchant.
“Others are 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 schemes, while there are three Nigerian accomplices who have been arrested and charged to court, adding that the masterminds were on the run and efforts are being made to arrest them.
“The Commission is calling on regulatory bodies to bring financial institutions to compulsory compliance with regulations in Know Your Customers (KYC), Customer Due Diligence (CDD), Suspicious Transaction Reports (STRs) and others.
“Deposit Money Banks, Fintechs, Micro Finance Banks found to be aiding and abetting 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 allowed,” he said.
While cautioning members of the public to be wary of these actors, he said the EFCC would continue its works against money laundering by fraudulent actors.
Uwujaren urged financial institutions to firm up their operational dynamics and save the nation from leakages and compromises bleeding the economy.
