The Economic and Financial Crimes Commission (EFCC) has expressed concern over the growing incidence of fraudulent activities in Nigeria’s financial sector, particularly among the unbanked, under-served, and middle-class populations.
EFCC Chairman, Ola Olukoyede, raised the alarm during a recent stakeholder engagement in Abuja, attributing the surge in financial crimes to lax Know Your Customer (KYC) protocols by some fintech companies.
He highlighted that many firms fail to adhere to strict KYC guidelines, especially when onboarding customers for tier-one accounts, leaving critical vulnerabilities that fraudsters exploit.
“Many fintech companies demonstrate poor internal controls when serving the unbanked and under-served populations, creating fertile ground for fraudulent activities,” Olukoyede stated. “The negligence in implementing KYC for tier-one accounts has made it easier for fraudsters to take advantage of these systems.”
Call for Robust Onboarding Processes
The EFCC chairman urged fintech operators to prioritize robust KYC processes and strengthen internal controls to prevent exploitation by fraudsters. He emphasized the importance of revisiting onboarding protocols to seal loopholes and safeguard the integrity of financial transactions.
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Strengthening Collaboration with the EFCC
Olukoyede also called for greater collaboration between fintech companies and the EFCC, urging operators to view themselves as critical stakeholders in the fight against financial crimes. He stressed the importance of prompt responses to regulatory inquiries and requests, adding that such partnerships are essential for creating a more secure financial ecosystem.
“Increasing collaboration with the EFCC means recognizing your role as stakeholders in combating corruption. We are always open to supporting your efforts to strengthen internal controls and mitigate fraud risks,” Olukoyede said.
The EFCC also announced its readiness to partner with fintech firms such as Moniepoint to tackle fraud-related challenges, underscoring the importance of collective action in addressing financial crimes.
“When stakeholders like you actively seek to strengthen your systems and prevent fraud, it aligns with our core mandate of investigating and enforcing against economic crimes. No one can fight corruption alone; collaboration is key,” the chairman noted.
Toward a Safer Financial Ecosystem
The EFCC reiterated its commitment to working with fintech companies to enhance fraud prevention strategies, bolster internal controls, and mitigate risks across Nigeria’s financial sector. The agency emphasized that combating economic crimes requires a unified effort from regulators, fintech operators, and other stakeholders.
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