NFIU alerts banks to new fraudulent ways of claiming money from abroad
The Nigerian Financial Intelligence Unit (NFIU) has issued an urgent advisory to banks and the public about increasing fraudulent activities involving counterfeit documents used to claim funds transferred from foreign banks to Nigerian accounts.
In a June 2024 report, the NFIU highlighted its dedication to providing stakeholders with timely and evidence-based guidance derived from relevant case studies. The agency’s findings detail emerging trends and suspicious activities exploiting financial system vulnerabilities for illegal purposes.
“This advisory is crucial due to numerous petitions from financial institutions, government agencies, and third parties seeking help in tracing and recovering funds transferred from foreign entities to Nigerian business partners,” the NFIU stated. “It aims to alert stakeholders and the public to red flags and new trends, especially the use of forged documents by scammers to defraud unsuspecting victims.”
The NFIU noted that these deceptive petitions, which involve the tracing and recovery of funds allegedly transferred from foreign banks to Nigerian banks, are a growing threat to victims, financial institutions, law enforcement agencies, and other government bodies.
Citing examples, the agency mentioned a case where a law firm filed a petition on behalf of an NGO, requesting the recovery of €30 billion purportedly transferred from a foreign bank to Nigeria for real estate investment. Another petition sought to recover €6 billion allegedly transferred to a Nigerian bank account.
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The NFIU advised financial institutions and the public to remain vigilant and implement measures to safeguard important documents from unauthorized access.
“Exercise caution with telegraphic transfer documents from major European banks, as most fraudulent claims originate from the same jurisdictions,” the NFIU warned.
For banks, the NFIU recommended immediate Enhanced Due Diligence upon receiving letters from customers anticipating large inflows, backed by usual Telex copies, to verify document authenticity. If forgery is suspected, banks should promptly respond in writing to the customer, stating the non-existence of such transactions to prevent fraudulent use of acknowledgment letters. Additionally, banks should file Suspicious Activity Reports (SAR) for any entity or individual presenting dubious claims.
The NFIU urged the public to be aware of fraudulent individuals and fictitious telegraphic inflows, scrutinize potential business opportunities carefully, and recognize the risks of investing based on unverifiable Telex transfers.
The key red flags listed by the NFIU include: Large single transaction amounts; Documentation contradictions, such as Arabic inscriptions instead of investor signatures; Lack of history of similar transactions; Records of acknowledged letters to banks and the CBN and newly incorporated companies expecting significant foreign inflows.
Others are use of acknowledged documents as legitimate transaction approvals; presentation of Telex copies; absence of complaints from foreign investors or banks; requests for financial commitments in exchange for a percentage of the expected funds and law firms offering legal services for a fixed percentage of alleged inflows.
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