NFIU Begins Crackdown On Fraudulent Wire Transfers

The Nigerian Financial Intelligence Unit (NFIU) has announced stringent measures to combat the rise of fraudulent telegraphic transfers, also known as wire transfers.

The NFIU stated this in an advisory released to journalists on Friday.

The advisory comes in response to numerous petitions from financial institutions, government agencies, and third parties, which have sought the NFIU’s assistance in tracing and recovering funds transferred from foreign sources to business partners in Nigeria.

Part of the advisory stated that the initiative aims to identify and investigate individuals, groups, and entities involved in deceptive financial practices, ensuring that fraudulent activities are curtailed before they can negatively impact the financial system.

Part of the advisory stated that, “We have seen a worrying trend of forged documents being used by fraudsters to defraud unsuspecting members of the public. The forged documents include fake SWIFT messages, Memoranda of Understanding (MoUs), and other supporting documents meant to deceive.

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“The NFIU has received multiple complaints involving entities claiming to be victims of criminal conversion of funds. These cases often involve the alleged violation of the right to withdraw large sums of money transferred from overseas business partners. The petitions, often backed by contradictory statements of accounts and forged documents, have raised significant concerns.”

The NFIU further warned that, “False allegations and misrepresentation of material facts can lead to a loss of confidence in the banking system. Such actions could damage the reputation of the financial industry and cause a decline in patronage.”

The NFIU urged the general public to be vigilant about fraudulent individuals and fictitious telegraphic inflows, noting that, “It’s crucial for potential investors to scrutinize business opportunities thoroughly before committing financial resources.”

The NFIU has issued several recommendations for financial institutions to mitigate the risks associated with these fraudulent activities. These include: banks should immediately conduct enhanced due diligence upon receiving notification of anticipated large inflows, ensuring the authenticity of the documents presented; financial institutions must quickly respond in writing to customers when forgery is suspected, stating the non-existence of such transactions to prevent the misuse of acknowledgment letters for fraudulent purposes, and banks are advised to file Suspicious Activity Reports (SAR) to the NFIU for any entity or individual presenting frivolous claims.