The Economic and Financial Crimes Commission has indicted a new generation bank, six Fintech companies and some microfinance banks over their alleged involvement in major financial scams, accusing them of enabling fraudsters to launder large sums of money.
The commission’s Public Affairs Director, Mr. Wilson Uwujaren, made the disclosure during a news conference held at the EFCC headquarters in Abuja yesterday.
According to Uwujaren, the affected financial institutions allegedly allowed cryptocurrency transactions valued at N162 billion to pass through their systems without adequate due diligence during the 2024/2025 financial year.
He said the institutions compromised established banking procedures, making it possible for fraudsters to convert proceeds of crime into digital assets and transfer them to safe destinations.
Uwujaren said: “A total sum of 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 to the tune 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 carried out under two major schemes, noting that the first involved a syndicate that used an airline discount scheme to deceive victims.
According to him, the fraudsters advertised a discount platform for the purchase of flight tickets from a particular foreign airline.
He said: “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.
Uwujaren disclosed that investigations revealed the scheme was being coordinated by a foreign national, adding that the commission had so far recovered and refunded N33 million to affected victims.
He further revealed that another fraud scheme involved a company identified as Fred and Farid Investment Limited, also known as FF Investment, which allegedly lured Nigerians into a fake investment operation.
Uwujaren said: “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 added that foreign nationals were behind the schemes, while three Nigerian accomplices had been arrested and charged to court.
The EFCC spokesman said the principal suspects were still at large, noting that efforts were ongoing to apprehend and prosecute them.
“The Commission is calling on regulatory bodies to bring financial institutions to compulsory compliance with regulations in the areas of 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 cautioned members of the public to remain vigilant and avoid falling victim to fraudulent schemes, assuring that the EFCC would continue its fight against money laundering and financial crimes.
Uwujaren also urged financial institutions to strengthen their operational frameworks to prevent systemic leakages and curb practices that undermine the nation’s economy.
