Court Grants EFCC Authority To Freeze Accounts Of 1,146 Individuals And Companies Amid FX Crisis

A Federal High Court in Abuja has granted an interim order requested by the Economic and Financial Crimes Commission (EFCC) to freeze a total of 1,146 bank accounts owned by individuals and companies. The freeze is in connection with allegations including unauthorized dealings in foreign exchange, money laundering, and terrorism financing, as reported by the News Agency of Nigeria (NAN).

The ruling, delivered by Justice Emeka Nwite, was based on an ex-parte motion presented by counsel for the EFCC, Ekele Iheanacho. Alongside freezing the accounts, the court also approved the EFCC’s request to conclude its investigation within a period of 90 days.

The motion, heard on April 24, was filed under various legal provisions, including Section 44(2) and (K) of the 1999 Constitution, Section 34 of the EFCC Establishment Act 2004, and Section 7(8) of the Money Laundering Prevention and Prohibition Act, 2022, as well as the inherent jurisdiction of the court.

The EFCC asserted that the targeted bank accounts were under investigation for suspected involvement in money laundering and terrorism financing. It stated that preliminary investigations revealed connections between these accounts and individuals utilizing virtual cryptocurrency exchange platforms for illicit activities aimed at manipulating the value of the Naira and laundering proceeds from unlawful deeds.

Justice Nwite’s order aims to preserve the funds in these accounts until the investigation concludes, possibly leading to prosecution. The court scheduled the next hearing for July 23.

Previously, on March 18, Justice Nwite had ordered Binance Holdings Limited to provide the EFCC with comprehensive data on Nigerian users trading on its platform. This interim order was granted to facilitate the EFCC’s investigation into alleged money laundering and terrorism financing activities on Binance, a cryptocurrency exchange platform. The EFCC had informed the court of users exploiting the platform for market manipulation, causing distortions in currency values.

While the EFCC is currently prosecuting Binance and two of its executives for alleged money laundering, the Federal Inland Revenue Service (FIRS) is separately prosecuting the company for alleged tax evasion.

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