Banks, fintechs flag 82,143 transactions in one year – Report

Nigerian financial entities, including banks and fintech companies, flagged a total of 82,143 suspicious transactions in 2024, signaling intensified efforts to combat money laundering, terrorism financing, and other illicit financial activities. This figure is part of a broader reporting framework aimed at strengthening the nation's anti-financial crime measures.

The Nigerian Financial Intelligence Unit (NFIU) released its 2024 Annual Report, detailing that beyond suspicious transactions, the agency processed 25,819,719 Currency Transaction Reports (CTRs) and 23,364 Suspicious Activity Reports (SARs). These disclosures are crucial for the NFIU's mandate to monitor financial flows and identify potential criminal activities.

Deposit Money Banks were the primary source of these alerts, submitting 73,531 suspicious transaction reports, which constitutes approximately 89.5% of all such reports received. Other financial institutions contributed 5,442 reports, while capital market operators and insurance firms filed 1,796. Designated Non-Financial Businesses and Professions submitted 1,013 reports, and Virtual Asset Service Providers reported 361.

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During the review period, the NFIU received a total of 25,819,719 CTRs, 82,143 STRs, and 23,364 SARs.

The report highlights a consistent increase in suspicious transaction reporting throughout the year. Banks, in particular, showed a growing trend, with the number of STRs filed rising from 14,744 in the first quarter to 21,704 in the fourth quarter. Similarly, other financial institutions saw their reporting numbers climb from 842 in Q1 to 1,908 in Q4, reflecting enhanced surveillance and monitoring activities across the financial sector.

Under Nigeria's Money Laundering (Prevention and Prohibition) Act, reporting entities are legally obligated to file suspicious transaction reports when there is a reasonable belief that a transaction is linked to money laundering, terrorism financing, proliferation financing, or any other criminal activity. The NFIU collaborates closely with regulatory bodies like the Central Bank of Nigeria and the Securities and Exchange Commission to ensure compliance.

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Section 7 of the MLPAA requires all reporting entities, including financial institutions and designated non-financial institutions, to submit a report where there is a determination that the activity or transaction is suspicious and possibly linked to money laundering, terrorist financing or other illegal activity.