Banks, Fintechs Flag 82,143 Suspicious Transactions in 2024

Banks, fintech companies, insurance firms, capital market operators, and other reporting entities flagged 82,143 suspicious transactions to the Nigerian Financial Intelligence Unit in 2024, as authorities intensified efforts to curb money laundering, terrorism financing, and other illicit financial activity.

The figures were disclosed in the NFIU’s 2024 Annual Report, which also showed that the agency received 25,819,719 Currency Transaction Reports and 23,364 Suspicious Activity Reports during the year. The report stated that “during the review period, the NFIU received a total of 25,819,719 CTRs, 82,143 STRs, and 23,364 SARs.”

Deposit Money Banks accounted for the lion’s share of suspicious transaction filings, submitting 73,531 reports, representing about 89.5 per cent of all STRs received. Other Financial Institutions filed 5,442 reports, while capital market operators and insurance companies submitted 1,796 reports. Designated Non-Financial Businesses and Professions accounted for 1,013 reports, and Virtual Asset Service Providers filed 361.

Quarterly data showed a sustained increase in bank filings throughout the year, with Deposit Money Banks rising from 14,744 STRs in the first quarter to 21,704 in the fourth quarter. Other Financial Institutions similarly grew from 842 reports in the first quarter to 1,908 in the fourth quarter.

READ ALSO: APC Primaries Show Strong Internal Democracy, Says Tinubu

On Currency Transaction Reports, banks filed 23.16 million of the 25.82 million total, roughly 89.7 per cent, while Other Financial Institutions contributed 2.53 million reports. The NFIU also received 21,466,288 reports relating to Politically Exposed Persons during the year.

The report noted that under the Money Laundering Prevention and Anti-Corruption Act, all reporting entities are required to file a suspicious transaction report whenever a transaction is determined to be possibly linked to money laundering, terrorist financing, proliferation financing, or other unlawful conduct.

As part of its enforcement activities, the NFIU conducted 1,317 off-site and 98 on-site examinations across Abuja, Enugu, Kaduna, Kwara, Lagos, Maiduguri, Port Harcourt, and Sokoto. It also onboarded 483 reporting entities onto its platforms and enrolled 44,256 Designated Non-Financial Businesses and Professions on a simplified reporting platform developed jointly with the Special Control Unit Against Money Laundering.

The agency identified several emerging financial crime risks from the year’s data, including frequent cash withdrawals from government accounts, the use of corporate entities as intermediaries in virtual asset transactions, misuse of personal accounts for business activity to evade taxes, and the diversion of public funds through third-party entities. It also raised concern over illegal Bureau de Change operators laundering funds for politically exposed persons, and warned that terrorist organisations were exploiting dealers in precious metals and stones to finance their activities.

The NFIU disseminated 3,030 proactive and 1,866 reactive intelligence reports to competent authorities during the year. Corruption accounted for the largest share of intelligence reports at 1,958, followed by fraud at 1,022, money laundering at 705, criminal tax offences at 385, and drug trafficking at 294. Terrorism financing generated 239 reports, while human trafficking and migrant smuggling accounted for 114.