The Nigerian Financial Intelligence Unit has raised alarm over suspicious transactions amounting to N48 billion wired to Dubai and Hong Kong between 2021 and 2024, facilitated by Nigerian banks.
NFIU disclosed this in a recently released report.
The report revealed that 401 suspicious financial transactions worth N48 billion were linked to both regions between January 2021 and September 2024.
A further analysis of the report showed that while only 185 of the STRs were connected to Dubai, they accounted for the bulk of the total value—N29.6 billion; the remaining 216 STRs were traced to Hong Kong, valued at N18.6 billion.
In 2021, only two STRs, valued at N42m were reported. By 2024, that number had soared to 202 STRs with a combined value of N32bn.
The NFIU blamed this trend on a mix of complex regulatory loopholes, the proliferation of shell companies and offshore accounts, and weak enforcement mechanisms in both Dubai and Hong Kong.
In light of the above, NFIU issued a strong warning to Nigerian financial institutions to enhance due diligence.
According to NFIU, Nigeria can be plunged into a financial mess if the situation is left unchecked.
“The NFIU finds it pertinent to issue this advisory to relevant stakeholders to employ enhanced due diligence in the detection, deterrence, and prevention of abuse of the financial system through these hotspots.
“Reporting suspicious transactions and activities flowing from these jurisdictions is critical to protecting the Nigerian financial system and contributing to the global fight against money laundering, terrorist financing, and proliferation financing,” the report stated.
