Over N48bn moved from Nigeria to Dubai and Hong Kong in suspicious transactions — Report

In a May 2025 report obtained on Tuesday, the NFIU described the two destinations as “emerging global hotspots for illicit financial flows,” and warned Nigerian financial institutions to strengthen their monitoring systems, PUNCH reports. 

According to the report, the unit received 401 Suspicious Transaction Reports (STRs) linked to both regions within the period under review. Although Dubai accounted for only 185 of the reports, the transactions connected to the United Arab Emirates totalled ₦29.6bn — the highest in value.

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he remaining 216 STRs involved Hong Kong, with a combined value of ₦18.6bn.

“The NFIU finds it pertinent to issue this advisory to relevant stakeholders to employ Enhanced Due Diligence in the detection, deterrence, and prevention of abuse of the financial system through these hotspots,” the report stated.

“Reporting suspicious transactions and activities flowing from these jurisdictions is critical to protecting the Nigerian financial system and contributing to the global fight against money laundering, terrorist financing, and proliferation financing.”

The report documented a sharp increase in suspicious transactions over time. In 2021, only two STRs worth ₦42million were recorded. By 2024, the number had soared to 202 reports, with a total value of ₦32billion.

The NFIU attributed the rise to “complex regulatory loopholes,” shell companies, offshore accounts, and weak enforcement mechanisms in both Dubai and Hong Kong. These gaps, the agency said, are being exploited by criminal networks.

“Dubai, a major financial and commercial centre in the Middle East, has become a focal point in the global fight against money laundering. Its strategic location, burgeoning real estate market, and business-friendly environment make it appealing to both legitimate investors and criminal actors,” the report noted.

It referenced the 2020 Dubai Leaks scandal, which exposed how individuals under international sanctions, alleged criminals, and politically exposed persons acquired valuable real estate assets in the city.

On Hong Kong, the report said: “Hong Kong, a major financial hub in Asia, is similarly challenged by money laundering activities. Its role as an international finance centre and gateway to mainland China makes it a critical node in global financial flows.

“The city has witnessed a number of high-profile money laundering cases involving major international banks. These incidents underscore the ongoing challenge of balancing financial openness with effective regulatory oversight.”

The NFIU urged Nigerian banks, financial institutions, and regulators to apply Enhanced Due Diligence procedures and prioritise the early detection and reporting of suspicious activities linked to both cities.

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“This advisory is a call to arms for Nigerian financial stakeholders,” the report concluded. “Failure to act decisively could expose the country to deeper financial crime risks and serious international reputational damage.”

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