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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.
