Nigerian Financial Intelligence Unit (NFIU) has sounded the alarm over suspicious international financial transfers amounting to approximately N48 billion, traced from Nigeria to destinations such as Dubai and Hong Kong.
According to the Nigerian Lawyer reports, the transactions, which shows signs of money laundering and potential terrorism financing, raised red flags due to their volume, structure, and lack of clear economic justification.
Many of the entities involved are currently under investigation.
Speaking before the Senate Committee on Anti-Corruption and Financial Crimes, Hafsat Bakari, NFIU Director disclosed that the agency had been tracking a surge in questionable overseas fund movements.
She noted that Dubai and Hong Kong were increasingly being used as havens for illicit finance, largely due to what she described as “loophole-prone” regulatory environments.
Read also: IGP launches anti-money laundering units to tackle financial crimes
Suspicious transaction reports
The report released in May revealed revealed that it received 401 suspicious transaction reports (STR) linked to both regions between January 2021 and September 2024, with the total value of the flagged transactions exceeding N48bn.
While only 185 of the STRs were connected to Dubai, they accounted for the bulk of the total value-N29.6bn.
The remaining 216 STRs were traced to Hong Kong, valued at N18.6bn.
“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.”
Bakari explained that many of the flagged transactions were routed through certain companies, non-financial businesses, and other designated non-financial institutions, complicating traceability.
In response, she said the NFIU was ramping up surveillance and fostering closer collaboration with other security and regulatory bodies to stem the tide of capital flight linked to criminal activity.
Emphasising the transnational nature of financial crimes, Bakari called for stronger ties between Nigeria and other international financial intelligence units. She warned that criminal networks were becoming more adept at manipulating the global financial system, requiring a more coordinated global response.
Senators present at the hearing voiced alarm over the findings, highlighting the potential impact on Nigeria’s efforts to combat corruption and safeguard national security. The lawmakers pledged to support new legislation that would enhance the NFIU’s operational powers and improve its capacity to trace illicit financial flows.
Reaffirming its commitment to financial integrity, the NFIU has urged banks and other financial stakeholders to intensify their due diligence and promptly report suspicious transactions. The Unit reiterated that vigilance and cooperation are critical in safeguarding Nigeria’s financial ecosystem.
