Nigerians have been reminded by the Central Bank of Nigeria (CBN) to avoid engaging with illegal and unregistered financial operators who entice and scam members of the public with large profits.
This was disclosed in a circular released on the CBN website titled “ADVISORY ON ILLEGAL FINANCIAL OPERATORS IN NIGERIA” signed by the Secretary, FINANCIAL SERVICES REGULATION COORDINATING COMMITTEE (FSRCC).
The apex bank told the public to check the websites of the CBN, the Securities and Exchange Commission (SEC), and other relevant member agencies of the FSRCC before investing in such companies and schemes.
What the CBN is saying
The surge in the operations of Illegal Financial Operators (IFOs), according to the apex bank, is disturbing and poses a major danger to public confidence and Nigeria’s financial stability.
The document partly reads, “The FSRCC wishes to draw the attention of the general public to the worrisome increase in the activities of the Illegal Financial Operators (IFOs) which portends grave risk to public confidence and the stability of the Nigerian Financial System.”
- The solution for the reduction in crimes committed by the illegal IFO would largely depend on the willingness of Nigeria to do their research and abstains from unusual profit.
- The partly document reads, “The general public is advised to refrain from dealing with unlicensed or illegal financial operators, who lure and defraud unsuspecting members of the public by offering extra-ordinary returns on investments as bait.”
- Members of the public are urged to visit the CBN’s official website, as well as the websites of the Securities and Exchange Commission (SEC) and other relevant FSRCC member agencies, to check the registration and license status of such companies and schemes before investing in them.
- The bank also asked Nigerians to report to law enforcement agencies any individual or entity suspected of being involved in such illicit activities.
- Before registering/licensing any operator under their regulatory scope, financial regulatory bodies will continue to conduct essential due diligence. Hence, it would be prudent to check with the financial authorities before investing in any financial institution.