The Economic and Financial Crimes Commission has indicted a new generation bank, six fintech companies and some microfinance banks over their roles in large-scale financial crimes that enabled fraudsters to launder billions of naira through the financial system.
The EFCC said the compromised institutions allowed transactions amounting to N18.7bn to pass through without proper customer due diligence, while cryptocurrency deals worth N162bn were processed in violation of basic banking procedures during the 2024/2025 financial year.
Speaking at a press briefing in Abuja on Thursday, the commission’s Director of Public Affairs, Wilson Uwujaren, accused the affected institutions of failing to enforce Know Your Customer and anti-money laundering standards, thereby giving criminal networks easy access to formal financial channels.
Uwujaren disclosed that investigations uncovered cases where a single customer operated as many as 960 accounts in one bank, all allegedly used for fraudulent transactions.
“It is worrisome that cryptocurrency transactions to the tune of N162bn passed through a new generation bank without any form of due diligence. A total of N18.1bn was also moved through the system unchecked,” he said.
The EFCC said its intervention had so far led to the recovery of N33.62m, which has been refunded to some victims.
Uwujaren explained that the frauds were largely executed through two major schemes.
The first involved an airline ticket discount racket, in which victims were lured into making payments supposedly routed to a foreign airline, only for their entire bank balances to be wiped out after the transaction.
More than 700 victims reportedly lost about N651m in the scheme, which the EFCC said was masterminded by a foreign national. About N33m has so far been recovered and returned to victims.
The second scheme was allegedly operated by a firm, Fred and Farid Investment Limited, also known as FF Investment, which defrauded Nigerians through bogus investment packages.
Uwujaren said over 200,000 victims were swindled in the operation, with about N18bn allegedly raised through nine companies, including 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.
He disclosed that foreign nationals were behind the schemes, while three Nigerian accomplices had been arrested and charged to court. The main suspects, he added, were still on the run.
The EFCC spokesperson called on financial regulators to compel strict compliance with KYC, Customer Due Diligence and Suspicious Transaction Reporting frameworks, warning that banks and fintechs found to be aiding fraudsters should face suspension and prosecution.
“Negligence and failure to monitor suspicious and structured transactions by financial institutions should no longer be tolerated,” Uwujaren said.
He urged members of the public to remain vigilant, assuring that the commission would intensify efforts to curb money laundering and protect Nigeria’s financial system from abuse.
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