EFCC Raises Alarm Over ₦162bn Crypto and ₦18.7bn Scam Flows Through Banks, Fintechs

EFCC Flags Massive Crypto and Scam Transactions Linked to Banks and Fintechs

Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC), has raised serious concerns over the role of some financial institutions in facilitating questionable financial flows within the country.

According to the commission, investigations have revealed that banks, fintech companies, and microfinance institutions enabled the movement of about ₦162 billion linked to cryptocurrency transactions, alongside ₦18.7 billion connected to suspected scam activities.

EFCC officials disclosed that weaknesses in compliance systems allowed large volumes of funds to move through the financial system without proper scrutiny. In several cases, transactions were processed without adequate Know Your Customer (KYC) checks or effective monitoring, creating loopholes exploited by fraudsters.

The commission noted that some accounts used for these transactions showed unusual patterns, including rapid inflows and outflows, multiple linked accounts, and limited customer verification.

The findings have sparked concern over the effectiveness of internal controls within parts of Nigeria’s financial sector. The EFCC warned that failure to enforce strict due diligence not only exposes institutions to criminal abuse but also undermines trust in the financial system.

While cryptocurrency itself is not illegal, the commission stressed that poor oversight can make digital assets attractive tools for money laundering, online fraud, and other financial crimes.

The anti-graft agency made it clear that financial institutions found to have deliberately ignored red flags or compromised compliance standards could face investigations and possible sanctions. 

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The EFCC also urged regulators and financial service providers to strengthen collaboration, improve transaction monitoring systems, and ensure that emerging financial technologies do not become safe havens for criminal activity.

This development highlights the growing challenge of regulating fast-evolving digital finance in Nigeria. As fintech adoption and cryptocurrency use expand, experts say stronger oversight and accountability will be critical to protecting consumers and maintaining financial stability.

The EFCC reaffirmed its commitment to tracking illicit financial flows and holding both individuals and institutions accountable where breaches are established.