The Economic and Financial Crimes Commission (EFCC) has called for the suspension and prosecution of deposit banks, Fintechs, and microfinance banks that aid and abet fraudsters in the country.
The EFCC Director of Public Affairs, Wilson Uwujaren, made the call in Abuja, on the sidelines of a news briefing about negligence and compromise of financial institutions that cost victims billions of naira.
Uwujaren said the commission uncovered widespread compromise within Nigeria’s financial system, involving N18.7 billion investment scam and fraudulent transactions of N162 billion in cryptocurrencies.
He accused one new generation bank, six fintechs, and some microfinance banks of aiding and abetting fraudsters in laundering their proceeds.
“It is worrisome that investigations by the commission showed that cryptocurrency 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,” the Director stated.
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.
“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, and micro finance banks found to be aiding and abetting fraudsters should be suspended and referred to the EFCC for thorough investigation and possible prosecution,” he added.