EFCC Blames Nigerian Banks For Facilitating Financial Fraud Activities

EFCC Blames Nigerian Banks For Facilitating Financial Fraud ActivitiesThe Economic and Financial Crimes Commission (EFCC) has raised concerns about some Nigerian banks being used as channels for financial crimes, urging these institutions to avoid becoming instruments of fraud.....KINDLY READ THE FULL STORY HERE▶

EFCC Chairman, Ola Olukoyede, made this statement on Friday during a courtesy visit by the management of Moniepoint, led by its founder and Group CEO, Tosin Eniolorunda, to the EFCC headquarters in Abuja.

Speaking through his Chief of Staff, Michael Nzekwe, Olukoyede emphasized the critical role that financial institutions play in either enabling or preventing financial crime, particularly money laundering. He called on Nigerian banks to improve their practices, stressing that the country’s growth depends on such efforts.

“There’s hardly any financial crime that doesn’t involve financial institutions. Money laundering, for example, often flows through the banks. Nigeria stands to benefit greatly when we do the right thing,” he said.

Addressing the Moniepoint delegation, Olukoyede further urged the fintech company to avoid any involvement in fraudulent activities and to strengthen their systems against money laundering. “Don’t become a conduit for illicit activities. Ensure that your system is secure and that you are not complicit in any form of financial crime,” he advised. “You are important stakeholders in the fight against corruption, and we are here to assist in any way we can. Remember, no one is above the law.”

Olukoyede also highlighted concerns regarding poor internal controls, particularly within fintech companies dealing with underserved populations and the unbanked. He noted that issues related to Know Your Customer (KYC) protocols are particularly problematic, with some fintechs failing to properly vet users when opening tier-one accounts.

He added, “There is a significant amount of fraud at this level, and improper KYC processes are being exploited by fraudsters. It is crucial that you improve your KYC procedures to prevent this.”

Olukoyede concluded by urging increased collaboration between fintech companies and the EFCC. “We would like to see fintechs respond promptly to our inquiries and requests. You are partners in the fight against corruption, and your involvement is essential in tackling financial crimes,” he stated.

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