Nigerian Financial Intelligence Unit (NFIU)

The Nigerian Financial Intelligence Unit (NFIU) has issued an advisory update on Ponzi schemes and unregulated crowdfunding schemes, highlighting emerging trends and potential risks for Nigerians. This advisory stresses the increase of Ponzi schemes masked under various investment schemes which promise high returns within short time frames, and are particularly appealing to those facing financial hardships. It calls for regulatory authorities, financial institutions, and the public to enhance surveillance, compliance, and awareness to mitigate the impact of these fraudulent activities, which often involve digital assets and sector-based investments, particularly in agriculture and real estate.

The Nigerian Financial Intelligence Unit has released a report detailing the typologies of money laundering associated with kidnapping for ransom (KFR) in Nigeria. The report highlights the growing threat of KFR to national security and economic stability, emphasizing its connection to organized crime and money laundering. It identifies various methods used to launder ransom proceeds, including the use of betting platforms, fintech, wire transfers, crypto exchanges, cash, bank accounts, and even livestock. The report concludes with recommendations for mitigating KFR, including strengthening law enforcement, financial regulation, and community involvement, stressing that understanding KFR is essential for stakeholders to develop effective strategies aimed at preventing it and addressing organized crime.

The Nigerian Financial Intelligence Unit (NFIU) has issued updated guidelines for financial institutions to identify, verify, and report suspicious transactions related to money laundering, terrorism financing, and proliferation of weapons of mass destruction. These guidelines, effective December 13, 2024, are designed to help financial institutions enhance their control measures and ensure compliance with relevant laws. The document outlines the responsibilities of financial institutions in preventing financial crimes and specifies potential sanctions for non-compliance. It includes definitions of key terms and outlines the process for identifying and reporting suspicious transactions to the NFIU.

The Nigerian Financial Intelligence Unit (NFIU) has issued an advisory regarding fraudulent petitions involving the tracing and recovery of electronic wire transfers from foreign banks into accounts in Nigerian banks. The advisory aims to alert financial institutions, government agencies, and the public to the red flags and emerging trends used by fraudsters, especially the use of forged documents. The NFIU urges vigilance and enhanced due diligence to mitigate the risk of financial fraud and protect against deceptive practices. It recommends verifying the authenticity of documents, engaging forensic experts, and conducting open-source searches to identify potential scams.

The Nigerian Financial Intelligence Unit (NFIU) has released a report detailing the typologies of terrorism financing in Nigeria. The report identifies various methods used by terrorist groups to raise, move, and utilize funds, including extortion, kidnapping, and exploitation of informal financial systems. It also highlights the legal and institutional frameworks in place to combat terrorism financing, as well as the challenges faced in effectively implementing these measures. The report provides recommendations for policymakers, law enforcement agencies, supervisory authorities, and reporting entities to enhance their efforts in preventing and disrupting terrorism financing in the country, aiming to protect Nigeria's economy and national security.

The Nigerian Financial Intelligence Unit (NFIU) has released a comprehensive report detailing the typologies of money laundering associated with illicit drug trafficking in Nigeria. The report identifies several sectors and industries vulnerable to money laundering, such as financial institutions, hospitality, real estate, auto dealerships, and virtual assets. It further highlights key trends and challenges, offering recommendations for policymakers, law enforcement, regulatory agencies, and reporting entities to combat drug trafficking and money laundering effectively. The report serves as a crucial resource for understanding and addressing the complex issue of financial crimes linked to the drug trade in Nigeria.

This report by the Nigerian Financial Intelligence Unit (NFIU) examines the various methods and techniques used to finance terrorism in Nigeria. It highlights emerging trends associated with groups like ISWAP and Boko Haram, as well as IPOB and other militant groups. The report also emphasizes the urgent need for stronger measures, collaborative efforts, and policy recommendations to combat terrorism financing. Furthermore, the report identifies key indicators to assist financial institutions and law enforcement agencies in detecting and preventing terrorist financing activities.

The Nigerian Financial Intelligence Unit (NFIU) has released a detailed report on money laundering typologies stemming from illicit drug trafficking in Nigeria. Addressed to policymakers, law enforcement, and financial institutions, the report outlines key trends, vulnerabilities, and challenges in combating drug-related financial crimes. It emphasizes the need for strengthened inter-agency cooperation, enhanced resource allocation, and improved international partnerships to effectively disrupt and dismantle criminal networks involved in drug trafficking and money laundering.

The National Anti-Money Laundering/Countering the Financing of Terrorism/Countering Proliferation (of Weapons of Mass Destruction) Financing Strategy 2023-2027 outlines Nigeria's strategic objectives and action plans to combat financial crimes. This strategy builds upon previous efforts and incorporates lessons learned from the 2018 National AML/CFT Strategy and a recent risk assessment. It focuses on strengthening preventive measures, enhancing stakeholder effectiveness, and fostering cooperation to combat money laundering, terrorism financing, and proliferation financing, aiming to protect Nigeria's financial system and address identified vulnerabilities.

The Nigerian Financial Intelligence Unit (NFIU) has released a report assessing money laundering typologies from corruption in Nigeria. The report highlights the various methods used by criminals to launder the proceeds of corruption, including using politically exposed persons, undeclared assets, and legal entities. The report also provides case studies and red flags to help identify and prevent money laundering. The NFIU hopes that this report will help to combat corruption and promote transparency and accountability in Nigeria.

The Nigerian Financial Intelligence Unit (NFIU) has released new policy guidelines for implementing the AML/CFT/CPF data management framework by competent authorities in Nigeria. These guidelines are designed to ensure the collection, maintenance, and reporting of accurate and timely statistics related to anti-money laundering, counter-terrorism financing, and counter-proliferation financing activities. The policy aims to enhance the effectiveness of these activities, support mutual evaluations and risk assessments, and strengthen the fight against money laundering and terrorism financing by establishing a centralized online data management framework, facilitating information sharing among relevant authorities, and monitoring performance.

The Nigerian Financial Intelligence Unit (NFIU) has released a guidance note to assist reporting institutions in preparing and filing complete Suspicious Transaction/Activity Reports (STR/SARs) electronically. This guidance aims to improve the quality of STRs/SARs, which are crucial for identifying and combating money laundering, terrorist financing, and other financial crimes. The NFIU emphasizes the importance of providing clear, concise, and coherent narratives in STR/SARs, including all essential elements of information (Who, What, When, Where, Why, and How) to aid law enforcement agencies in their investigations. Financial institutions and designated non-financial businesses and professions (DNFBPs) are required to file STRs/SARs promptly, and failure to comply with the guidelines may result in sanctions.

The Nigerian Financial Intelligence Unit (NFIU) has issued guidance on money laundering, terrorist financing, and proliferation financing vulnerabilities in Free Trade Zones (FTZs). This guidance is for all FTZ Authorities in Nigeria, the Nigeria Customs Service, the Central Bank of Nigeria (CBN), and reporting entities. The NFIU aims to assist FTZs and relevant parties in understanding these vulnerabilities, building on international knowledge of associated risks and to put in place measures to prevent the zones from becoming channels for facilitating criminal activities.

The Nigerian Financial Intelligence Unit (NFIU) has issued a guidance note on counterproliferation financing for Virtual Asset Service Providers (VASPs). This document provides a blueprint for VASPs to enhance their financial crime compliance practices, particularly in identifying and mitigating the risks associated with proliferation financing. It emphasizes the importance of understanding FATF recommendations, conducting thorough risk assessments, implementing robust cyber-security measures, and adhering to strict reporting requirements to combat the misuse of virtual assets for illicit activities.

The Nigerian Financial Intelligence Unit (NFIU) has issued an advisory updating Financial Institutions (FIs) and Designated Non-Financial Institutions (DNFIs) about the Financial Action Task Force (FATF)'s updated list of jurisdictions under increased monitoring as of October 2022. This update informs these institutions about countries with strategic deficiencies in their Anti-Money Laundering (AML), Counter-Terrorist Financing (CFT), and Counter-Proliferation Financing (CPF) regimes. The NFIU advises caution when conducting transactions with entities or individuals from these jurisdictions, as they pose a risk to the international financial system, and to ensure enhanced due diligence and risk assessment are being applied.

The Nigerian Financial Intelligence Unit (NFIU) has released an advisory on the trends and patterns of internet fraud, particularly romance scams and ransomware attacks, between 2019 and 2021. The report highlights the geographical distribution of these crimes within Nigeria, with Delta, Lagos, and Edo states being the most vulnerable. It emphasizes the need for increased awareness and proactive measures to combat cyber fraud, especially among young males aged 0-29 who are identified as the most skilled perpetrators. The advisory provides recommendations for policy makers, reporting entities, law enforcement agencies, and the public on how to mitigate the risks associated with internet fraud.

The Nigerian Financial Intelligence Unit (NFIU) has released an advisory to inform and educate law enforcement, anti-corruption agencies, and the public about the dangers of Ponzi schemes and unregulated public crowd-funding investment schemes. It highlights the patterns and techniques used by perpetrators to defraud citizens. The advisory also offers recommendations to regulate and mitigate the risks associated with these schemes, aiming to protect the public interest and the economy.

The Nigerian Financial Intelligence Unit (NFIU) has issued an updated operational alert regarding the emerging trend of money laundering through agent banking, with a focus on Point of Sale (POS) businesses. This alert aims to guide competent authorities and reporting entities by providing case studies that demonstrate the use of POS in money laundering and terrorist financing. The alert highlights the inherent vulnerabilities in POS transactions, such as the use of cash, unscrupulous banking agents, lack of proper identification, and inadequate documentation, while also providing ways to help prevent money laundering, such as proper record keeping, KYC on customers, and awareness of suspicious activities.

The Nigerian Financial Intelligence Unit (NFIU) has issued an advisory on kleptocracy and public corruption in Nigeria. The advisory highlights the various forms of public corruption, including bribery, abuse of trust, embezzlement, and fraud. It also identifies several red flag indicators to assist financial institutions and the general public in detecting suspicious transactions associated with kleptocracy and public corruption. The NFIU aims to guide Reporting Entities and Competent Authorities on observable trends and patterns to mitigate AML/CFT/CPF threats.

The Federal Republic of Nigeria has enacted the Terrorism (Prevention and Prohibition) Act, 2022, repealing the previous Act from 2011. This new legislation aims to establish a more effective and unified legal framework for detecting, preventing, and punishing acts of terrorism, terrorism financing, and proliferation of weapons of mass destruction within Nigeria. Key provisions include measures for detecting and investigating terrorist activities, prosecuting offenders, and implementing financial sanctions related to terrorism and proliferation financing. The Act also establishes the Nigeria Sanctions Committee to oversee these efforts, coordinate counter-terrorism policies, and implement international counter-terrorism measures. These comprehensive measures seek to safeguard Nigeria from terrorist threats and enhance its compliance with global security standards, while also including measures for victim compensation.

The newly enacted Proceeds of Crime (Recovery and Management) Act, 2022 in Nigeria aims to establish a comprehensive legal and institutional framework for the seizure, confiscation, forfeiture, and management of properties reasonably suspected to have been derived from unlawful activities. It provides for non-conviction based procedures for the recovery of proceeds of crime and strengthens criminal confiscation procedures, ensuring that the total benefit from a person's criminal activity is calculated and confiscated. The Act also mandates relevant organizations to establish Proceeds of Crime Management Directorates to carry out the functions conferred under the Act, thereby enhancing collaboration among these organizations.

The Money Laundering (Prevention and Prohibition) Act, 2022 has been enacted in Nigeria to provide a comprehensive legal and institutional framework for preventing and prohibiting money laundering. It establishes the Special Control Unit Against Money Laundering under the Economic and Financial Crimes Commission (EFCC). The Act aims to strengthen the existing system for combating money laundering and related offences, expand the scope of money laundering offences, and ensure effective implementation of anti-money laundering provisions in relation to designated non-financial businesses and professions.

The Nigerian Financial Intelligence Unit (NFIU) has released an advisory based on the Financial Action Task Force (FATF) list of jurisdictions under increased monitoring as of October 2021. This advisory is aimed at informing all Financial Institutions (FIs), Designated Non-Financial Institutions (DNFIs), regulatory authorities, security and intelligence agencies, the judiciary, and other relevant stakeholders in Nigeria about the updates to the FATF list. The advisory highlights the need for caution when establishing business relationships or conducting financial transactions with entities or individuals from the identified jurisdictions with strategic AML/CFT/CPF deficiencies.

The Central Bank of Nigeria (CBN) has issued new Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Regulations, 2018. These regulations, effective February 1, 2018, provide an administrative sanctions regime for financial institutions under the CBN's supervisory purview. They specify offenses related to corporate governance, risk management, customer due diligence, record maintenance, and suspicious transaction reporting. The regulations outline penalties for non-compliance, including monetary fines and potential removal of board members or officers.

The Nigerian Financial Intelligence Unit (NFIU) has issued an advisory based on the Financial Action Task Force (FATF)'s updated list of jurisdictions under increased monitoring as of June 2021. The advisory is to inform financial institutions and other stakeholders about the strategic deficiencies in the Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regimes of these jurisdictions. The NFIU advises caution when establishing business relationships or conducting financial transactions with entities or individuals from these jurisdictions. This advisory aims to guide Nigerian entities in mitigating AML/CFT threats and complying with international standards.

The Nigerian Financial Intelligence Unit (NFIU) has issued an advisory based on the Financial Action Task Force (FATF) identified jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Proliferation Deficiencies (Grey-List). This advisory is aimed at guiding Reporting Entities and Competent Authorities (CA) on observable trends and patterns to mitigate AML/CFT threats. The FATF regularly updates its list of jurisdictions with strategic deficiencies in their regimes to counter Money Laundering, Terrorist Financing, and Proliferation Financing (ML/FT/PF), which may affect the obligations and risk-based approaches of Nigerian financial institutions.

This policy advisory from GIABA highlights the increasing importance of Fintech in West Africa and its potential to transform the region into a Fintech hub. However, it also warns of the associated risks of money laundering and terrorist financing (ML/TF) that come with the rapid growth of digital finance. The advisory urges member states to develop appropriate regulatory frameworks and adopt a risk-based approach to AML/CFT compliance to ensure the safe and sustainable development of the Fintech sector.

The Financial Action Task Force (FATF) has amended Recommendation 15 to include Virtual Assets and Virtual Assets Service Providers (VASPs) due to the rapid advancement of technology and the increasing use of virtual assets in financial transactions. The document highlights the risks associated with virtual assets, such as money laundering and terrorist financing, and provides recommendations for GIABA Member States to mitigate these risks. It urges member states to assess risks, establish regulations, and implement sanctions for non-compliance. The document emphasizes the importance of addressing the AML/CFT implications of virtual assets and VASPs to ensure financial stability and security within the region.

This advisory from the Nigerian Financial Intelligence Unit (NFIU) highlights the increased risks of financial crimes associated with the COVID-19 pandemic. It warns relevant agencies about potential exploitation of the crisis through cybercrime, fraud, counterfeiting, and diversion of public funds. The advisory offers guidance on managing these risks, emphasizing vigilance, compliance with AML/CFT regulations, and enhanced due diligence, especially regarding NGOs and digital onboarding of customers.

The Financial Action Task Force (FATF) emphasizes the crucial role of law enforcement, customs officials, and financial intelligence units in combating financial flows from illegal wildlife trade. Their report stresses the importance of financial investigations, enhanced coordination, and resource allocation to address money laundering risks associated with this crime. Authorities are encouraged to conduct parallel financial investigations, pursue money laundering charges, and establish multi-agency coordination mechanisms to share intelligence and information between AML and environmental authorities to follow the money trail.

The Financial Action Task Force (FATF) highlights the importance of the private sector's role in combating money laundering related to illegal wildlife trade, which generates billions annually. This report emphasizes how traffickers exploit financial system weaknesses to hide illicit proceeds, further damaging financial integrity. Financial and non-financial institutions are urged to enhance due diligence, report suspicious activities, and collaborate with public sectors to disrupt financial flows linked to this crime.

The Financial Action Task Force (FATF) report highlights the increasing threat of money laundering connected to the illegal wildlife trade (IWT), which generates billions annually and undermines financial integrity. The report emphasizes that jurisdictions often neglect investigating the financial trail of IWT, which exploits weaknesses in financial and non-financial sectors. Addressing this requires prioritizing the combatting of financial flows associated with IWT, enhancing coordination between authorities, and fostering international cooperation. Jurisdictions need to focus on identifying and disrupting financial flows associated with IWT, including through cooperation between public authorities, the private sector, and civil society.

The Federal Republic of Nigeria has issued an amendment to the Central Bank of Nigeria (Anti-Money Laundering and Combating the Financing of Terrorism in Banks and Other Financial Institutions in Nigeria) Regulations, 2013. These amendments, issued on October 7, 2019, address various aspects of financial regulation, including customer due diligence (CDD), wire transfers, and reporting requirements. The aim of these changes is to strengthen the existing framework for combating money laundering and terrorism financing within the Nigerian banking and financial sector. These changes are important for financial institutions, as they need to make sure they adhere to new regulations to avoid the sanctions.

The Nigerian Financial Intelligence Unit (NFIU) issued an advisory to Nigerian financial institutions and other actors in the financial system, informing them of the need to safeguard the country's financial system from the implications of violations of United Nations Security Council Resolutions. The advisory highlights the obligations of financial institutions and designated non-financial institutions regarding jurisdictions with strategic AML/CFT deficiencies, particularly the Democratic People's Republic of Korea (DPRK). It lists specific resolutions and calls for enhanced due diligence and countermeasures to prevent money laundering, terrorism financing, and the proliferation of weapons of mass destruction. The NFIU also outlines prohibited activities, reporting requirements, and red flag indicators for identifying suspicious transactions related to the DPRK.

The Nigerian Financial Intelligence Unit Act of 2018 establishes the Nigerian Financial Intelligence Unit (NFIU) as the central body in Nigeria responsible for combating money laundering, terrorist financing, and other related crimes. The NFIU is tasked with receiving, analyzing, and disseminating financial intelligence to law enforcement, security, and intelligence agencies. The Act also outlines the NFIU's objectives, functions, powers, management, and financial provisions. This will support in preventing and detecting financial crimes, and ensuring compliance with international standards in financial regulation.