The Nigerian Financial Intelligence Unit (NFIU) has issued an advisory over increasing fraudulent petitions involving alleged non-receipt of large wire transfers from foreign banks into local accounts.
It warned members of the public, financial institutions and the legal community of the growing trend of deceptive practices aimed at exploiting the financial system.
According to the NFIU, individuals, corporate entities, and even some law firms have been implicated in filing petitions based on forged documents and fictitious transactions.
These scams often involve fabricated Memoranda of Understanding (MoUs) and doctored SWIFT messages designed to mislead victims and authorities.
The NFIU outlined key trends and patterns it has observed in these fraudulent activities.
It noted that fraudulent entities typically open new bank accounts with no operational history, create fake legal agreements, and solicit financial contributions from unsuspecting individuals, promising them a share of the non-existent funds.
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Law firms are sometimes engaged without carrying out adequate due diligence, lending credibility to otherwise suspicious claims.
The common warning signs include large sums allegedly transferred, inconsistencies across documentation, newly incorporated companies with no financial track record, and the presentation of counterfeit SWIFT messages purporting to confirm foreign fund transfers.
The NFIU’s investigation showed that no confirmations of such transfers were received from corresponding foreign financial intelligence units or foreign banks.
The banks mentioned in the petitions confirmed they had not received the alleged wire transfers, and the entities involved were often identified as shell companies lacking legitimate operational records.
The investigations also pointed to the widespread use of fake legal documents, forged signatures, and conflicting information.
It warned of the consequences of the fraudulent activities for the financial system, including reputational risks for banks, misuse of the NFIU’s name and insignia on forged documents, and heightened vulnerability of both financial institutions and the general public to fraud.
The NFIU issued several recommendations. Financial institutions were advised to conduct enhanced due diligence, verify the authenticity of SWIFT messages, promptly reject any fraudulent claims, and report suspicious activities or transactions to the NFIU through Suspicious Activity Reports (SARs) or Suspicious Transaction Reports (STRs).
It urged Nigerians to exercise caution when approached with unverifiable wire transfer claims, thoroughly scrutinise any investment opportunity and remain alert to common signs of fraud.
Law firms and the Nigerian Bar Association (NBA) have also been advised to ensure thorough client verification and document authentication before taking up such cases, to avoid unwittingly facilitating fraudulent schemes.
The NFIU noted that fraudulent petitions exploiting alleged foreign wire transfers pose an increasing threat to the financial sector.
It stressed the importance of vigilance, rigorous due diligence and stronger collaboration between financial institutions and law enforcement agencies among others in mitigating the risks.
