Regulatory Alerts2022-11-24
Added · Updated
Advisory on Ponzi Scheme and Other Unrelated Public Crowd Funding Investment Schemes
The Nigerian Financial Intelligence Unit issues an advisory detailing the features, techniques, and red flags of Ponzi schemes and unregulated public crowd funding investment schemes to guide reporting entities and competent authorities. The document highlights that over three million Nigerians lost approximately N18 billion to such frauds as of March 2021 and outlines specific indicators such as unregistered entities, promises of high returns, and rapid fund movements. It references existing legal frameworks including the Investment and Securities Act and BOFIA, which impose fines and imprisonment for unauthorized financial activities, and recommends enhanced vigilance and reporting of suspicious patterns by banks and regulators.