“Stop making yourselves available as instruments of fraud’, EFCC warns bankers”…
The Economic and Financial Crimes Commission (EFCC) has issued a strong warning to financial institutions, urging them to avoid becoming tools for fraudulent activities. The warning came during a courtesy visit on Friday, November 22, 2024, by the management team of Moniepoint, led by its founder and Group CEO, Tosin Eniolorunda, to the EFCC headquarters in Abuja.
EFCC’s Executive Chairman, Mr. Ola Olukoyede, represented by the Chief of Staff and Commander of the EFCC, Michael Nzekwe, criticized Nigerian banks for their increasing involvement in facilitating financial crimes, including money laundering. “Hardly any financial crime is completed without passing through the financial institutions,” Nzekwe said. “Money laundering remains a major concern, and banks are often the conduits for such illegal activities. Nigeria stands to gain significantly if we collectively take steps to address these issues.”
Nzekwe further advised Moniepoint and other financial service providers to strengthen their internal controls and prevent their platforms from being exploited for illegal purposes. “Ensure that your systems are secure and resistant to fraud,” he urged. “You are critical stakeholders in the fight against corruption, and the EFCC is ready to collaborate and assist however we can. Remember, no one is above the law.”
The EFCC also raised concerns about the high incidence of fraud involving fintech companies, particularly among underserved populations, the unbanked, and small businesses. According to Olukoyede, lax Know Your Customer (KYC) procedures at fintech platforms are often exploited by criminals. “It’s crucial that fintech companies, including Moniepoint, improve their KYC processes, particularly when opening tier-one accounts. We’ve seen how negligence in this area can lead to significant fraud,” he explained. He also emphasized the need for increased cooperation with the EFCC to help curb these risks.
Moniepoint, one of Nigeria’s largest payment service providers, which handles around 70% of the country’s Point-of-Sale (PoS) transactions and transfers, acknowledged the growing challenges that come with its rapid expansion. The company is also extending its operations beyond Nigeria, with plans underway in the UK, Kenya, and Tanzania.
Eniolorunda shared that as Moniepoint grew, so did the attempts by criminals to exploit its systems for illicit activities. “While we’re helping businesses and individuals make ends meet, there are those who try to use our channels for illegal purposes,” he said. “We’ve made significant strides in strengthening our KYC protocols and anti-money laundering systems, but we recognize that this is a fight we cannot win alone.”
Eniolorunda emphasized the importance of forming a strategic partnership with the EFCC, noting that collaboration with law enforcement would strengthen Moniepoint’s efforts to combat fraud. “The EFCC has access to valuable intelligence that we might not see, and vice versa. Together, we can identify and prevent fraudulent activities before they escalate into larger national security threats.”
As Moniepoint continues to expand, the company is committed to improving its internal controls and developing stronger partnerships to mitigate risks and combat financial crime. Both Moniepoint and the EFCC expressed optimism that their collaboration would help protect the financial system and contribute to the broader fight against corruption in Nigeria.
