The Economic and Financial Crimes Commission (EFCC) has indicted a new generation bank, six Fintechs and some microfinance banks in major financial scams by allowing fraudsters to launder huge sums of money.
Director of public Affairs of the Commission, Mr Wilson Uwujaren, made this known at a news briefing at the commission’s headquarters in Abuja on Thursday.
According to him, the compromised institutions allegedly allowed cryptocurrency transactions worth N162 billion; and N18.7 billion investment scheme to pass through without proper due diligence within the 2024/2025 financial year.
He said that the financial institutions clearly compromised banking procedures and allowed the fraudsters to safely change their ill-gotten gains into digital assets and move them to safe destinations.
He accused one new generation bank, six Fintechs and some micro finance banks of aiding and abetting fraudsters in laundering their proceeds.
“It is worrisome that investigations by the commission showed that crypto-currency transactions to the tune of N162 billion passed through a new generation bank without any due diligence.
“Investigations also showed that a single customer maintained 960 accounts in the new generation bank and all the accounts were used for fraudulent purposes.”
He said that the financial institutions clearly compromised banking procedures and allowed the fraudsters to safely change their ill-gotten gains into digital assets and move them to safe destinations.
He said that the scams of N18.7 billion were in two categories, adding that the first was a syndicate of fraudsters that employed an airline discount scheme to lure their victims.
The second one, according to him, involved a company named Fred and Farid Investment Limited, simply called FF investment, which lured Nigerians into a bogus investment arrangement.
“The modality of the fraudsters in the airline scam involved a string of carefully devised airline discount information that any unsuspecting foreign traveler will fall for.
“What they do is to advertise a discount system in the purchase of flight tickets of a particular foreign carrier.
“The payment module is designed in such a way that their victims would be convinced that the payment is actually made into the account of the airline.
“No sooner the payment is made than the passenger’s entire funds in his bank account are emptied”.
He said that over 700 victims had fallen into the trap of fraudsters through the scheme with a total loss of N651.1 million.
Uwujaren said that the commission succeeded in recovering and returning N33.63 million to victims of the scam, and cautioned Nigerians to be more vigilant.
“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.”
According to him, investigations show that the scheme is being masterminded by a foreign national.
He said that another scheme involved a company named Fred and Farid Investment Limited, simply called FF investment, which lured Nigerians into a bogus investment arrangement.
“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 said that foreign nationals were also behind the scheme, while there are three Nigerian accomplices who have been arrested and charged to court.
He said that the masterminds were on the run and efforts were being made to bring them to book.
“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 said.
While cautioning members of the public to be wary of these actors, he said that the EFCC would continue its works against money laundering by fraudulent actors.
Uwujaren urged financial institutions to firm up their operational dynamics and save the nation leakages and compromises bleeding the economy.
