By Obinna Uballa
The Economic and Financial Crimes Commission (EFCC) has accused banks, fintech firms and microfinance institutions of enabling large-scale financial fraud through widespread failures in customer due diligence and regulatory compliance.
The allegation was made on Thursday in Abuja by Wilson Uwujaren, EFCC’s Director of Public Affairs, during a media briefing where he revealed findings from investigations into two major fraud schemes that allegedly affected more than 900,000 Nigerians.
Uwujaren said probes by the commission showed that a “new generation bank,” six fintech companies and several microfinance banks compromised standard banking procedures, allowing fraud proceeds to be converted into digital assets and transferred to “safe destinations” without triggering regulatory red flags.
“A total sum of N18,739,999,027.35 passed through our financial system without due diligence by banks,” Uwujaren disclosed.
He further revealed that cryptocurrency transactions valued at N162 billion were processed through a single bank without proper Know Your Customer (KYC) checks, while another bank permitted a single customer to operate as many as 960 accounts, all allegedly used exclusively for fraudulent activities.
According to the EFCC, the funds were traced to two major criminal schemes. The first involved an airline ticket discount scam in which victims were lured with fake offers of discounted flight tickets. Payments were structured to appear as transfers to legitimate airline accounts, after which victims’ bank accounts were allegedly emptied.
Uwujaren said more than 700 victims lost a combined N651,097,755 to the scheme, noting that only N33.6 million has so far been recovered and refunded.
He added that investigations showed the fraud was masterminded by foreign nationals who recruited young Nigerians and relied heavily on cryptocurrency, routed through the Bybit exchange, to move illicit proceeds
.
The second scheme centred on an investment operation linked to Fred and Farid Investment Limited, also known as FF Investment, alongside eight other affiliated companies.
The commission said over 200,000 Nigerians were defrauded of about N18.08 billion through multiple fake investment packages.
Other companies implicated include 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.
Uwujaren disclosed that three Nigerian accomplices had been arrested and charged to court, while the foreign masterminds behind the investment scheme remain at large.
He warned that financial institutions found to have aided or abetted fraud risk suspension and prosecution, stressing that regulatory lapses would no longer be tolerated.
“Negligence and failure to monitor suspicious and structured transactions by banks should no longer be allowed,” he said.
Uwujaren added that the EFCC would intensify its crackdown on money laundering, digital asset abuse and institutional complicity, urging regulators to enforce stricter compliance with KYC, customer due diligence and suspicious transaction reporting requirements.
