Tag: NFIU

The Federal Government has explained that Nigeria’s removal from the European Union’s list of high-risk jurisdictions for anti-money laundering and countering the financing of terrorism will lead to the easing of compliance requirements on financial transactions between Nigeria and EU member states.

This development will create a more favourable environment for trade, investment and cross-border financial flows.

In a statement issued on Friday by the Nigerian Financial Intelligence Unit (NFIU), the government explained that transactions involving Nigerian individuals, businesses and financial institutions will no longer be subjected to the enhanced due diligence measures typically applied to high-risk countries.

According to the NFIU, “This is expected to ease compliance burdens, support smoother cross-border financial flows, and enhance Nigeria’s attractiveness for trade, investment and financial partnerships with EU Member States.”

The agency said the delisting comes at a critical time in the global economic landscape and is expected to strengthen Nigeria’s standing as a dependable economic partner for European markets.

“In an increasingly competitive global trade environment, the delisting further strengthens Nigeria’s positioning as a reliable economic partner, reinforcing Europe’s role as a key destination for Nigerian exports and a source of investment and financial services,” the statement said.

Reacting to the development, the Chief Executive Officer of the NFIU, Hafsat Abubakar Bakari, described the decision as a strong endorsement of the country’s reform efforts across the financial and regulatory landscape.

“Beyond the immediate economic benefits, this outcome strengthens international confidence in Nigeria’s financial system and underscores our standing as a cooperative and responsible participant in the global financial architecture,” Bakari said.

She explained that the NFIU has played a central role in coordinating national anti-money laundering, counter-terrorist financing and counter-proliferation financing efforts, while also improving the quality and use of financial intelligence to support supervisory, investigative and prosecutorial authorities nationwide.

“This achievement is the product of collective national effort. While we welcome this progress, it also places a clear responsibility on all stakeholders to sustain momentum, guard against complacency and continue strengthening our systems in response to evolving financial crime risks,” she said.

The NFIU said it will continue to engage with the Financial Action Task Force, the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), the European Union and other international partners, while working closely with domestic stakeholders to ensure that Nigeria not only maintains compliance but also improves the strength and resilience of its AML/CFT/CPF framework.

“This decision represents an important external validation of Nigeria’s steady progress in strengthening its AML/CFT/CPF framework. It demonstrates that consistent reforms, effective coordination and strong national ownership can translate into tangible international outcomes,” Bakari said.

The European Commission, in its own assessment, acknowledged that Nigeria and other countries removed from the list had strengthened the effectiveness of their AML/CFT regimes, closed major technical and operational gaps and fulfilled the commitments set out in their FATF Action Plans, which led to their earlier removal from the FATF grey list in June and October 2025.

The NFIU in the statement said Nigeria’s delisting reflects the political will and leadership of President Bola Ahmed Tinubu, whose administration prioritised financial system integrity, inter-agency coordination and compliance with international standards.

It also credited the outcome to sustained collaboration among the National Assembly, law enforcement agencies, regulators, supervisors, the judiciary, the private sector and development partners.

The NFIU, Nigeria’s national centre for the receipt, analysis and dissemination of financial intelligence related to money laundering, terrorist financing and related offences, said it will continue to work with both domestic and international partners to safeguard the integrity of the country’s financial system.

The Nigerian Financial Intelligence Unit (NFIU) has issued a stern warning to the public to exercise extreme caution when investing, citing mounting evidence that Chinmark Group operated what it described as a Ponzi scheme.

The agency also raised concerns over a rising wave of fraudulent digital asset-based investment platforms spreading across the country.

In a recent advisory, the NFIU revealed that Chinmark Group presented itself as a legitimate conglomerate with operations spanning real estate, logistics (under Chinmark Haulage), agriculture, hospitality, and healthcare through Chinmark Medical.

The company further cultivated trust by projecting an image rooted in religious values, philanthropy, and youth empowerment, appealing to Nigerians both at home and in the diaspora.

Investigations showed that Chinmark used aggressive marketing tactics on social media platforms like Instagram and Facebook, enlisting the help of popular influencers to lure unsuspecting investors.

The company promoted fixed investment packages that promised monthly returns on investment (ROI) of between three and four per cent. In the early stages, ROI payments were made consistently, which encouraged reinvestment and referrals — a typical mechanism in Ponzi-style operations.

As investor interest grew between 2022 and 2025, Chinmark offered packages ranging from N100,000 to over N10 million. It accepted payments in Bitcoin and USDT (Tether), particularly from Nigerians living abroad. The funds were processed through crypto over-the-counter (OTC) agents and converted to naira. This system, according to the NFIU, was designed to create the illusion of seamless entry and exit points for international investors through cryptocurrency channels.

The NFIU found that Chinmark claimed the funds collected were used for asset-backed operations, mostly in haulage and real estate. To reinforce this image, the company posted photos of trucks, medical facilities, and real estate properties. However, many of these assets could not be independently verified, and by late 2021, the timely payment of ROI began to falter. The delays triggered panic among investors who were told that “cash flow issues” were responsible.

Further scrutiny unearthed troubling allegations, including that haulage contracts did not exist, funds were misappropriated, and new investments were used to pay older investors — a textbook Ponzi arrangement. Ultimately, thousands of investors were affected, with reported losses exceeding N10 billion. Many of the victims have since formed support groups and lodged petitions with law enforcement agencies.

The NFIU pointed out that Chinmark was never licensed by the Securities and Exchange Commission (SEC) to manage investment funds, nor was it registered with the Central Bank of Nigeria (CBN) to accept deposits. It operated in a regulatory void while branding itself with spiritual language and employing crypto tools to escape financial scrutiny.

In addressing this growing trend, the NFIU stated that the surge in fraudulent investment schemes in Nigeria has become increasingly sophisticated, and schemes are now disguised under exciting brand identities that promise investors extraordinary profits in very short periods. These entities continue to thrive by targeting those facing financial hardship and uncertainty, often appealing to emotions of hope and urgency.

According to the advisory, digital asset-based investment fraud has become the most prevalent variant of Ponzi schemes in Nigeria, driven by the ease of anonymity, global reach, lack of regulation, and rapid fund transfers. The NFIU linked the popularity of these schemes to Nigeria’s rising adoption of digital assets as part of efforts to drive financial inclusion and expand e-commerce.

The schemes often take the form of token-based programs where promoters introduce fictitious digital tokens supposedly backed by blockchain projects or crypto mining operations. Victims are promised exaggerated returns simply for holding, staking, or referring others to invest.

Read Also: NFIU worried over abduction of 735 persons in six years

Another common model involves platforms that claim to use artificial intelligence, automated trading bots, or arbitrage strategies to generate high yields from crypto markets. These promises, often unverifiable, conceal the typical structure of a Ponzi scheme, where funds from new entrants are used to pay older participants.

Many of the schemes use multi-level marketing (MLM) structures, rewarding users for recruiting others, thereby perpetuating a cycle of dependence on continuous new sign-ups. In several cases, privacy coins and crypto mixing services are used to hide the trail of stolen funds, making it difficult for investigators to trace transactions.

The NFIU said operators of these platforms rarely seek registration or licensing with key regulators such as the CBN, SEC, or the National Insurance Commission (NAICOM). In some cases, they display fabricated certificates or falsely claim endorsements from unrelated or nonexistent authorities to mislead investors.

In addition, these fraudulent platforms often bombard their targets with complex technical jargon — using terms like “AI-powered trading,” “quantum blockchain,” or “machine learning signals” — to appear more sophisticated and trustworthy. These marketing strategies aim to obscure their operations while simultaneously assuring potential investors that all technical processes are taken care of.

An illustrative case cited was CBEX, a scheme that boasted of using artificial intelligence algorithms to deliver high trading accuracy. However, by April 2025, CBEX had implemented restrictions on withdrawals, citing a “security breach” and demanding “verification fees” before investors could access their funds.

The NFIU warned against the common marketing red flags present in these digital asset scams, including promises of daily or weekly fixed returns such as “5% daily for life” or “15% monthly” with no mention of risk. Legitimate investments, the agency said, are inherently tied to market performance and cannot guarantee such consistently high yields, especially in the volatile world of cryptocurrency.

Another red flag is the platform’s refusal to submit to regulatory oversight. Claims of being “decentralised” or “uncontrollable by regulation” are often tactics to evade accountability. These entities typically operate mainly on social media or encrypted messaging platforms like WhatsApp, Telegram, Facebook, and Instagram, with minimal physical or web presence. Attempts to question or challenge their activities in such online communities are often met with swift blocking or censorship.

Further indicators include the use of unlisted tokens without any real-world utility or market presence, fabricated partnerships with respected institutions or celebrities, high-pressure tactics such as countdown clocks and limited-time offers, and withdrawal delays accompanied by excuses such as “system upgrades” or demands for additional deposits.

In its advisory, the NFIU highlighted several specific platforms under scrutiny for potentially operating digital Ponzi schemes:

eWealth Connect (EWC) claims to be a decentralised, community-based digital asset trading platform built on the Solana blockchain. While it promotes transparency and P2P trading, it also offers tiered investment packages with promised returns and governance tokens — a setup that demands rigorous scrutiny and verification, especially as it prepares to launch in the final quarter of 2024.

WWCoin (also known as TOFRO) offers what it describes as daily profit signals and bonuses, with earnings potentially reaching six per cent per day. However, the NFIU cautioned that the scheme features excessive withdrawal fees, vague operations, and exaggerated profit claims typical of scams.

Delux positions itself as a platform for monetising social media engagement, content creation, and completing simple online tasks. While it targets youths and freelancers, its emphasis on referral bonuses and flexible income resembles models that could easily evolve into pyramid schemes.

ADK operates under a structure that charges withdrawal fees and encourages recruitment through layered agent levels. Investors reportedly earn based on the losses of others, alongside unverifiable claims of a 97% win rate. The platform has no clear product or sustainable revenue model and poses serious risks to unsuspecting users.

Finally, the NFIU stressed the importance of vigilance. Investors were urged to conduct thorough due diligence before committing funds to any platform. Platforms promising guaranteed profits, asking for payments via untraceable channels, or hiding behind technical complexity without transparency should be treated with suspicion. Financial institutions and designated non-financial businesses and professionals were reminded of their responsibility to identify, report, and mitigate risks associated with such fraudulent operations.

The NFIU pledged its commitment to protecting Nigeria’s financial system and its citizens from exploitative investment schemes, urging all stakeholders to remain alert and proactive in exposing these scams.

…links kidnapping to money laundering

The Nigeria Financial Intelligence Unit (NFIU) has revealed that over 735 mass abductions have occurred across Nigeria from 2019 to date, linking the surge in Kidnapping For Ransom (KFR) to money laundering and other organized criminal activities.

This revelation was contained in a report titled “Typologies of Money Laundering Through Kidnapping for Ransom in Nigeria”, released on Tuesday in Abuja. The report provides an analysis of how kidnapping has evolved into a sophisticated criminal enterprise, posing severe threats to national security and economic stability.

According to the NFIU, the growing prevalence of kidnapping for ransom now extends beyond a law enforcement challenge, directly impacting the financial system and public safety. 

The crime the NFIU said is increasingly intertwined with terrorism financing, human and drug trafficking, and the exploitation of weak regulatory frameworks. The agency noted that these connections have created complex criminal networks that are difficult to dismantle.

The report described Nigeria’s cash-dominated economy and reliance on informal financial channels as major obstacles to tracking illicit financial flows. 

These systems, the NFIU report said, allows kidnappers and their associates to receive ransom payments without detection, further complicating the investigative process.

Victims of KFR range from schoolchildren and farmers to transport workers and business executives, with ransom demands often running into millions of naira. The continued use of unregistered SIM cards and anonymous digital platforms has given criminal elements further cover, making communication and coordination easier for kidnappers while frustrating investigators.

To stem the tide, the NFIU called for a comprehensive national strategy that brings together law enforcement agencies, financial regulators, community leaders, and policymakers. It advised the government to allocate more resources to security operations directly targeting KFR and proposed the creation of specialized anti-money laundering courts to expedite financial crime cases.

Read Also: NFIU issues advisory on fraudulent foreign wire transfer

The Unit recommended strengthening Know-Your-Customer (KYC) procedures across financial institutions and improving the detection and reporting of suspicious financial transactions. It encouraged investments in artificial intelligence-based monitoring systems that can help identify patterns in financial behavior linked to ransom payments.

On the telecommunications front, the report urged strict enforcement of SIM card registration and advocated for closer cooperation between telecom companies and law enforcement agencies. This includes sharing call logs and geolocation data to aid in investigations and hostage rescue efforts.

Law enforcement agencies, the report stressed, must improve intelligence gathering capabilities and interagency collaboration. It also emphasized the importance of combating corruption within security agencies and ensuring accountability in the handling of kidnapping cases.

Financial regulators were urged to implement risk-based anti-money laundering and counter-financing of terrorism frameworks, while conducting regular audits of banks and other financial institutions to verify compliance with international standards.

Civil society organizations were identified as key partners in the fight against KFR. The report encouraged them to lead public awareness campaigns to educate communities about the dangers of paying ransom and to promote the reporting of suspicious financial and criminal activities.

International cooperation was described as vital, with the NFIU calling for enhanced intelligence-sharing, joint cross-border operations, and deeper engagement with regional and global anti-crime initiatives. It noted that the transnational nature of kidnapping for ransom requires a globally coordinated response.

The NFIU concluded that addressing kidnapping for ransom in Nigeria demands urgent, collective action involving stakeholders across multiple sectors. By acting on the report’s recommendations, the country can disrupt the financial networks that sustain KFR, reinforce the resilience of its financial systems, and better protect vulnerable populations.

The report employed a triangulated research methodology combining qualitative and quantitative data and also presented an in-depth descriptive analysis covering legal frameworks, geographical hotspots, demographic trends, and the financial impact of KFR. It stressed that continuous training, investment in advanced technology, and robust community engagement are essential to building an effective national response.

Nigerian Financial Intelligence Unit (NFIU) has partnered with London Stock Exchange Group (LSEG) to fight financial crimes.

Speaking with stakeholders at a dialogue in Lagos, NFIU Chief Executive Officer, Hafsat Bakari, said the event demonstrates how public sector and private organisations can work together to bring attention to key financial crime threats that facing Nigeria and the region.

According to her, fighting financial crime is everyone’s business. She said: “It is possible to create a system which prevents crimes and enhances efforts to protect the country by ensuring resources are well used and establishing an environment for investments.

‘‘Public-Private Partnerships provide one route in achieving that objective and NFIU-LSEG Risk Intelligence partnership shows how such partnerships can be game-changers”.

Bakari reiterated that no one organisation can confront financial crimes challenges. She noted, it is only through cooperation we can expect to win.

Read Also: Smuggling of migrants: FG adopts automated verification of travel documents

“Nigeria and the world face growing financial crimes undermining economic integrity, threaten security, and facilitate spread of weapons and other illicit goods”.

Bakari said Financial Information Sharing provide a structured and effective platform for pooling of resources, intelligence, and technologies.

“They enable stakeholders to align efforts, share insight, and develop strategies. These can be collaboration between public and private sector or within the private sector,” she said.

She noted that the BVN initiative between CBN and banks is helping to stop financial crimes. This strengthened the nation’s anti-money laundering and countered financing of terrorism framework and demonstrates the potential of PPPs to deliver systemic impact.

‘While BVN has had value for law enforcement, we must seek innovations, through shared KYC systems, joint analytical teams, shared watchlists and multi-sectoral fusion centres, which have been used to great effect elsewhere.

“Another example of the use of PPPs in our national AML/CFT/CPF framework is the effort to combat wildlife crimes, which are increasingly recognized as a significant predicate offence for money laundering. Working with banks, law enforcement and prosecutorial authorities we are making significant strides in combating wildlife trafficking networks that fund and benefit from criminal enterprises that undermine biodiversity,” she stated.

Chair of the United for Wildlife Financial Task, Xolisile Khanyile, explained that to prevent partnership from being disbanded, it is critical that it should be legislated, because legislation brings comfort to those who are insecure to start.

According to her, investigations and prosecutions on financial crimes are not rampant, with cross border elements making money laundering and financial crimes, complex. She added that self- money laundering exists, but they involve small amount of values.

The panel section of the event, presented opportunity for industry stakeholders and the team from the London Stock Exchange Group to explore new ways money laundering perpetrators explore loopholes to perpetrate the crimes.