From Juliana Taiwo-Obalonye, Abuja
The Nigerian Financial Intelligence Unit (NFIU) has issued an advisory to Nigerian banks and the public regarding fraudulent wire transfers from foreign entities.
The advisory highlighted a surge in petitions received by the NFIU, where entities claim they were victims of criminal conversion of funds by Nigerian banks and the Central Bank of Nigeria (CBN).
It identified several red flags associated with these deceptive transfers, including the use of forged documents, such as SWIFT messages, Memoranda of Understanding (MoUs), and supporting documents designed to deceive unsuspecting victims.
The financial watchdog said some petitions were forwarded to it demanding the release of €30 billion, €6 billion and N30 million by an NGO, law firm (name withheld) and an individual requesting the
NFIU and other relevant agencies to trace and recover funds.
NFIU said the law firm submitted a petition on behalf of its client an NGO requesting the recovery of the sum of €30bn, transferred from a foreign bank to a bank in Nigeria.
The petition further claimed the funds which are meant for investment in real estate had been blocked by a financial institution in Nigeria.
The NFIU observed, “The common mode of transaction observed was by SWIFT wire transfer and all the messages provided as additional attachments were observed to be doctored/forged.
“Records from the company registry revealed that the entities involved in such transactions are often newly incorporated, and in some cases, they are not duly incorporated with the Corporate Affairs Commission (CAC). Some of the account numbers contained in the petitions do not exist.
“The sums mentioned in the petitions are often very large sums and in foreign currencies. The highest being €30, 000,000,000.00 Euros (Thirty Billion Euros) only while the lowest was N30, 000,000.”
NFIU warned that these false allegations could result in a loss of confidence by the banking public and damage the reputation of both the banking industry and the entire financial system.
The NFIU emphasised the importance of conducting Enhanced Due Diligence upon receiving notification of a large incoming transfer to verify the authenticity of presented documents and prevent fraudulent activity.
It further urged banks to promptly respond to customer inquiries regarding such transfers and file Suspicious Activity Reports (SARs) with the NFIU on any entity or individual suspected of making frivolous or suspicious claims.
The NFIU encouraged the public to be aware of the red flags and modus operandi employed by fraudsters. It further urged citizens to scrutinise potential business opportunities before committing financial resources and to avoid basing investment decisions solely on unverified telegraphic or wire transfers.
The NFIU assured that it will analyse and profile both senders and recipients of these deceptive transfers, disseminating intelligence reports to relevant law enforcement agencies (LEAs) and counterparts, both domestically and internationally, to foster a collaborative effort to combat financial crime.
The NFIU expressed concern that the fraudsters request a financial commitment from individuals in exchange for a fixed percentage of the expected funds.
It said that they go to the extent of requesting for a law firm to offer legal services in exchange for a fixed percentage of the alleged inflow.
The advisory also emphasised the need for legal professionals to sensitise their members on the importance of verifying and authenticating client documents before taking action.
The NFIU stated that, “Our findings suggest that deceptive fraudulent petitions involving the tracing and recovery of funds allegedly transferred from foreign banks to Nigerian banks are becoming a recurrent threat to not only the targeted victim(s) but also Financial Institutions, Law Enforcement Agencies (LEAs) and other government agencies.
“The public should exercise some level of skepticism when dealing with telegraphic transfer documents from major European banks as nearly all frivolous claims emanate from same jurisdictions and bank abroad. Relevant LEAs should also take steps to effectively address the problem of fraudulent telex copies by ensuring the prompt prosecution and sanctioning of offenders to serve as a deterrence.”
The NFIU provided detailed case studies to illustrate the tactics employed by fraudsters, highlighting the use of forged documents, unrealistic sums of money, and non-existent businesses to deceive victims and financial institutions.
