In a critical advisory issued today, the Nigerian Financial Intelligence Unit (NFIU) has warned banks and the public about a rising trend of scammers using counterfeit documents to claim funds from abroad. The NFIU’s June 2024 report underscores the agency’s commitment to providing timely and evidence-based guidance to stakeholders.
The NFIU’s alert focuses on fraudulent petitions aimed at tracing and recovering electronic wire transfers from foreign banks into Nigerian accounts. According to the report, these scams exploit vulnerabilities in the financial system through emerging trends, suspicious activities, and sophisticated methods.
“This advisory became necessary due to numerous petitions received by the NFIU from financial institutions, government agencies, and other third parties seeking assistance in tracing and recovering funds transferred from foreign entities to their business partners in Nigeria,” the NFIU stated. “It aims to highlight the red flags and emerging trends, particularly the use of forged documents by fraudsters.”
The NFIU revealed that deceptive petitions involving fund recovery from foreign banks to Nigerian banks are a recurrent threat. One notable case involved a law firm petitioning on behalf of an NGO to trace and recover €30 billion allegedly transferred for real estate investment but blocked by a Nigerian bank. Another involved a petition to recover €6 billion transferred to a client’s Nigerian account.
The NFIU advised financial institutions and the public to be vigilant and protect important documents from misuse. Recommendations include conducting Enhanced Due Diligence (EDD) upon receiving documents indicating large inflows and quickly addressing any suspicions of forgery.
Financial institutions are urged to file Suspicious Activity Reports (SAR) on any entity presenting dubious claims. The public should exercise caution when dealing with telegraphic transfer documents from major European banks, as many frivolous claims originate from these jurisdictions.
The NFIU outlined several red flags, such as large single transactions, contradictions in documentation, newly incorporated companies expecting significant foreign inflows, and requests for financial commitments in exchange for a fixed percentage of expected funds.
