EFCC Alleges Nigerian Banks Are Channels for Money Laundering

The Economic and Financial Crimes Commission (EFCC) has raised concerns over the role of Nigerian banks in facilitating financial crimes, urging them to avoid becoming tools for fraud.

EFCC Chairman, Ola Olukoyede, issued this caution on Friday during a courtesy visit by the management of Moniepoint, led by its Founder and Group CEO, Tosin Eniolorunda, at the commission’s headquarters in Abuja.

Speaking through his Chief of Staff, Michael Nzekwe, Olukoyede emphasized the critical role financial institutions play in combating financial crimes. “There’s hardly any financial crime that doesn’t involve the banks.

Money laundering remains a major issue, and the banks are often the conduits. When we do the right thing, Nigeria will be the ultimate beneficiary,” he said.

The EFCC chairman advised Moniepoint and other fintech companies to strengthen their systems and avoid becoming enablers of corruption. “Do not allow your platform to be used for money laundering.

Strengthen your internal controls and ensure your system isn’t porous. You are key stakeholders in the fight against corruption, and no one is above the law,” he warned.

Olukoyede also highlighted the weaknesses in internal controls, particularly among fintechs serving the unbanked and under-served populations.

He stressed the importance of robust Know Your Customer (KYC) protocols, noting that the lack of thorough verification in tier-one accounts often leads to fraudulent activities.

“Increasing collaboration with the EFCC means viewing yourselves as partners in the fight against corruption. Respond promptly to our inquiries and requests to enhance accountability,” he added.

The EFCC reaffirmed its commitment to support financial institutions and fintechs in ensuring their operations align with anti-corruption objectives while safeguarding Nigeria’s financial ecosystem.