Regulatory Alerts2024-06-21
Added · Updated
Advisory on Fraudulent Petitions Involving Tracing and Recovery of Electronic Wire Transfers
The Nigerian Financial Intelligence Unit (NFIU) issues an advisory warning stakeholders about fraudulent petitions seeking the tracing and recovery of funds allegedly transferred from foreign banks to Nigerian accounts. The document details common fraud patterns involving forged SWIFT messages, Memorandums of Understanding, and fake stop orders, noting that claimed amounts often exceed N5,000,000 for individuals and N10,000,000 for entities. Financial institutions are required to conduct Enhanced Due Diligence, verify the authenticity of SWIFT instructions, and file Suspicious Activity Reports (SARs) when encountering such claims. The NFIU further mandates that law firms and the Nigeria Bar Association perform due diligence on clients and documents before initiating legal actions or petitions.