The Economic and Financial Crimes Commission (EFCC) is poised to take legal action against top executives in Nigeria’s banking sector over allegations of financial crimes, including money laundering and fraudulent practices.
The EFCC Chairman, Olanipekun Olukoyede, made this known during the 17th Annual Banking and Finance Conference organized by the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja.
Speaking at the event, Olukoyede confirmed that the Commission has concluded its investigations into several banks and their senior officials, signalling imminent prosecution.
Olukoyede expressed the EFCC’s determination to impose strict penalties to align Nigeria’s financial system with global best practices.
He said: “It is sad that we have also compiled our documents, we have made the necessary investigation. Now very soon, you will see some banks being prosecuted, some top officials being prosecuted.”
The EFCC boss emphasized that the lack of penal consequences for criminal infractions in the sector could jeopardize the integrity of Nigeria’s financial system.
He said: “We need to just do something drastic to bring everybody in line and to make us do the right thing. It’s extremely important. In a system where there is no penal sanction for criminal infraction, that system will never survive.”
Unethical practices in the sector
In his address, Olukoyede highlighted several unethical practices plaguing the sector, including foreign exchange manipulation, fraudulent charges imposed on depositors, and active involvement in money laundering schemes.
The EFCC boss said: “Operators frequently devise means to circumvent regulations and rules in a desperate bid for higher yields and bottom line. Sharp practices such as forex trading, defrauding of depositors through phantom charges, and complicity in money laundering and illicit financial schemes involving politically exposed persons continue to undermine the integrity of the sector and, by extension, the nation’s economy.”
He stressed that the involvement of financial institutions with politically exposed persons (PEPs) in illicit financial activities erodes the sector’s credibility and destabilizes the economy.
Olukoyede reaffirmed the EFCC’s commitment to collaborate with the banking sector to combat financial crimes and enhance enforcement of anti-money laundering laws.
Additionally, the EFCC Chairman urged the Chartered Institute of Bankers of Nigeria to intensify its regulatory oversight to ensure strict compliance with banking regulations.
He warned that the Commission would no longer tolerate complacency and urged financial operators to adhere to ethical standards, cautioning that prioritizing profits over national interest would hinder economic progress.
What you should know
Nairametrics earlier reported that the Central Bank of Nigeria (CBN), alongside law enforcement agencies, would closely monitor the Nigerian banking sector’s recapitalization efforts to prevent the influx of illicit financing into the sector.
- In a circular, the CBN made clear its intention to apply its robust anti-money laundering regulations vigorously. With the collaboration of relevant law enforcement agencies, the bank aims to ensure that the capital raised during the recapitalisation process is free from the taint of illegality.
- Banks are required to conduct comprehensive anti-money laundering screening checks.
- This includes Know Your Customer (KYC), Customer Due Diligence, and monitoring suspicious transactions to prevent the use of illicit funds in the recapitalisation exercise.