In a stern warning to Nigerian financial institutions, the new Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has accused banks of being significant players in the rise of financial crimes across the country.
Speaking on Friday during a courtesy visit from Moniepoint, a major Nigerian fintech company, Olukoyede highlighted how banks have become notorious for facilitating fraud, money laundering, and other illicit activities.
Addressing the Moniepoint team, led by its CEO Tosin Eniolorunda, Olukoyede urged financial institutions to reshape their role in Nigeria’s financial system for the betterment of the country. He emphasized that if banks fail to take a proactive stance against criminal activities, Nigeria’s financial sector will remain vulnerable to exploitation.
“There’s hardly any financial crime that would not go through the financial institutions,” Olukoyede said. “Money laundering is a major issue, and you will find that the perpetrators go through the banks. Nigeria will be the greatest beneficiary when we do the right thing,” he added.
The EFCC chairman’s statement comes at a time when Nigeria is grappling with widespread corruption, with banks playing a crucial role in enabling these financial crimes. The government and the EFCC are working to strengthen the country’s financial system by ensuring banks take responsibility for mitigating criminal activities.
Calls for Stronger Internal Controls and Collaboration
Olukoyede also expressed concern over the rising level of fraud within the fintech industry, especially among the unbanked and underserved populations. He pointed out that fintech companies, including Moniepoint, face significant challenges due to weak internal controls and lax Know Your Customer (KYC) procedures. The EFCC boss urged fintechs to take stronger measures in preventing fraud, warning that neglecting KYC could open doors to criminals exploiting these platforms.
“Increasing your level of collaboration with the EFCC means seeing yourselves as stakeholders in the fight against corruption,” Olukoyede said. “We would like you to respond to us when we make inquiries and requests. No one is above the law.”
As the fintech industry grows, Olukoyede noted that the sector’s vulnerability to financial crimes is becoming more apparent. The introduction of digital payment systems, especially in the Point-of-Sale (PoS) sector, has inadvertently attracted fraudsters. Moniepoint, which processes about 70% of Nigeria’s PoS transactions, has also been grappling with criminal activities trying to exploit its services.
Moniepoint’s Commitment to Anti-Fraud Efforts
During the meeting, Tosin Eniolorunda, the founder and CEO of Moniepoint, acknowledged the increasing challenges faced by fintech companies in Nigeria. He admitted that the growth of Moniepoint has attracted its fair share of criminal attempts, with fraudsters targeting its platform to exploit the unregulated space.
Eniolorunda stated, “Moniepoint has grown to become one of Nigeria’s largest payment service providers, processing a significant portion of Nigeria’s PoS transactions. But with this growth comes the challenge of criminal activities trying to exploit our platform.”
He emphasized the need for collaboration between fintech companies and regulatory bodies like the EFCC to effectively fight financial crimes. “We can’t do this alone,” he said. “There are experts in government organizations like the EFCC, and we believe that a strategic relationship with the commission is crucial in fighting these criminals.”
Improving KYC and Strengthening the Financial Sector
As Nigeria’s fintech sector expands, the need for robust systems to track and verify the identities of customers is becoming even more important. Moniepoint has made strides in improving its KYC procedures and enhancing fraud protection systems. Eniolorunda pointed out that Moniepoint has been able to discover fraudulent activities, thanks to its close collaboration with law enforcement.
“We have improved many things over the years, discovered potential fraud, and collaborated with law enforcement,” he said. “With the right strategic partnership with the EFCC, we can take our efforts to the next level.”
Eniolorunda also expressed concerns about the long-term risks posed by financial crimes. He warned that failure to act now could result in serious security issues affecting Nigeria’s economy.
“We need to quickly build stronger alliances to prevent any form of risks that could blossom into a national security issue,” he said. “We believe that with the support of the EFCC, we can achieve this.”
EFCC and Moniepoint to Collaborate More
The meeting concluded with a commitment from both the EFCC and Moniepoint to enhance their collaboration. Olukoyede expressed his confidence that working together will help strengthen the integrity of Nigeria’s financial institutions. The EFCC chair reassured the Moniepoint team that the commission would continue to offer support in any way it could to combat financial crimes.
“We value it that you are here today to seek a stronger tie and collaboration,” Olukoyede concluded. “No one man can fight corruption alone. Our core mandate is enforcement and investigation of economic and financial crimes. We are glad and wish to collaborate with you.”
