The Nigerian Financial Intelligence Unit (NFIU) said cryptocurrency and other new technologies are frustrating and complicating the fight against financial fraud.
NFIU’s Chief Executive Officer, Hafsat Bakari stated this at a summit with law enforcement agencies in Abuja where she noted that the agency received over 60,000 suspicious transaction reports and more than 15 million currency transaction reports in 2023 alone.
According to her, “It is well known that NFIU plays a very specific role within Nigeria’s security architecture. We do not investigate, we do not arrest and we do not prosecute. This allows us to focus particularly on our areas of core competence, which are receiving financial reports, analysing these reports to follow the money trail and providing you with our best understanding of the underlying criminal offences.
“We also recognise that the modern crime environment, particularly for the most serious offences is dynamic, fast-paced and often transnational. All of us also understand that for the vast majority of criminal offences, whether fraud, corruption or indeed terrorism, money is at the centre. Whether as proceed of the act or as an enabler of the act.
“Consequently, the only truly sustainable approach to crime prevention and disruption is identifying where these funds are and denying criminal actors access to them. We can only achieve this if we have efficient and effective systems for conducting financial analysis.“However, returning to the dynamism of the criminal environment, there are several challenges which we must overcome if we are to produce this intelligence consistently.
“The volume of data that we receive and analyse is huge, and will only continue to grow in the future as financial inclusion, decentralised finance and other emerging technologies shift transactions into the electronic space,” she said.
Bakari added, “In 2023, the NFIU received over 60,000 Suspicious Transaction and Activity Reports, and over 15 million Currency Transaction Reports. Aligned with this is the use of new technologies which provide a layer of anonymity and complexity to transactions.
“From crypto-currency to agency banking, the link between the owner of the funds and the transaction itself is becoming more opaque. This also ties to our third challenge, the increasingly transparent borders. Not in the physical sense, but in the electronic sense. Funds, money and transactions move rapidly across financial institutions, digital platforms and through underground banking systems.”
The NFIU boss further proposed strategic priorities, including enhancing technology utilization across agencies and creating fusion cells for joint investigations targeting high-risk offences.
She also stressed the importance of international collaboration in combating transnational crimes.
