NFIU warns Nigerian banks of rising scam threats, counterfeit documents used to claim funds abroad

The Nigerian Financial Intelligence Unit (NFIU) has issued a stark warning to Nigerian banks and financial institutions about a surge in fraudulent activities involving counterfeit documents used to claim funds from abroad. The advisory highlights the increasing trend of scammers exploiting the financial system through deceptive petitions.

In its June 2024 report, the NFIU emphasizes its commitment to providing timely and evidence-based guidance to stakeholders. The agency has observed numerous fraudulent petitions related to the tracing and recovery of electronic wire transfers from foreign banks to Nigerian accounts.

The NFIU’s advisory was prompted by a spike in petitions from financial institutions, government agencies, and third parties. These entities sought assistance in recovering funds transferred from foreign entities to business partners in Nigeria, often involving forged documents.

“This advisory became necessary due to numerous petitions received by the NFIU from financial institutions, government agencies, and other third parties seeking assistance towards the tracing and recovery of funds transferred from foreign entities to their business partners in Nigeria,” the NFIU stated. “The advisory aims to draw the attention of relevant stakeholders and the general public to the red flags as well as the emerging trends that have been observed, most especially the use of forged documents by fraudsters to defraud unsuspecting members of the public.”

The NFIU detailed several cases, including one where a law firm petitioned on behalf of an NGO to recover €30 billion purportedly transferred from a foreign bank to a Nigerian bank for real estate investment. Another case involved a petition to recover €6 billion allegedly transferred to a client’s Nigerian bank account.

In response, the NFIU urged financial institutions and the public to exercise vigilance and adopt measures to safeguard important documents from being misused.

The agency advised financial institutions to conduct enhanced due diligence upon receiving letters from customers anticipating large inflows, to verify the authenticity of presented documents.

“If issues of forgery are suspected, the financial institution must quickly respond in writing to the customer, clearly stating the non-existence of such pending transaction of funds,” the NFIU recommended. “Financial institutions should also file Suspicious Activity Reports (SAR) on any entity or individual presenting such frivolous claims.”

The NFIU highlighted several red flags, including large single transactions, contradictory documentation, newly incorporated companies expecting large foreign inflows, and requests for financial commitments in exchange for a percentage of expected funds.

The public is advised to scrutinize potential business opportunities and exercise caution when dealing with telegraphic transfer documents from major European banks. The NFIU’s advisory aims to prevent fraudulent claims and protect the integrity of Nigeria’s financial system.