The Economic and Financial Crimes Commission (EFCC) has linked a new generation bank, six fintech companies, and several microfinance institutions to compliance lapses that allegedly allowed fraudsters to launder about N162 billion through cryptocurrency-related transactions.
EFCC Director of Public Affairs, Wilson Uwujaren, said at a briefing in Abuja on Thursday that the institutions failed to implement critical safeguards, including Know‑Your-Customer (KYC) checks, Customer Due Diligence (CDD), and reporting of suspicious transactions.
These weaknesses enabled large sums of illicit funds to move through the financial system during the 2024/2025 financial year with minimal oversight.
Uwujaren described the lapses as “deeply concerning,” highlighting that approximately N18.1 billion passed through multiple institutions without proper scrutiny.
One individual reportedly held 960 accounts at a bank, all allegedly used to facilitate fraudulent transactions.
Investigations revealed two major schemes. The first involved an online promotion for discounted airline tickets.
Victims who paid for tickets were defrauded as funds were diverted. More than 700 victims reportedly lost a total of N651 million.
The second scheme involved Fred and Farid Investment Limited and affiliated companies, which allegedly defrauded over 200,000 investors through fictitious investment opportunities, raising about N18 billion.
The EFCC said it has recovered and returned N33.62 million to some victims.
Uwujaren warned that financial institutions found negligent or complicit in such activities could face regulatory sanctions, suspension, and prosecution.
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The commission called on the Central Bank of Nigeria and the Securities and Exchange Commission to enforce stricter oversight of banks and fintechs to ensure compliance with anti-money-laundering rules.
Officials also urged the public to exercise caution when engaging with digital investment platforms, particularly those promising unusually high returns or operating without verification.
The disclosure underscores Nigeria’s ongoing efforts to strengthen the financial system and combat cryptocurrency-related fraud.