A recent report by the Nigerian Financial Intelligence Unit (NFIU) has highlighted a concerning trend of suspicious financial transactions from Nigeria to Dubai and Hong Kong.
Between January 2021 and September 2024, over ₦48 billion was moved to these destinations in questionable deals.
The NFIU received 401 Suspicious Transaction Reports (STRs) linked to both regions during this period. Dubai accounted for 185 STRs, with a total value of ₦29.6 billion, while Hong Kong accounted for 216 STRs, with a total value of ₦18.6 billion.
According to the NFIU, the rise in suspicious transactions can be attributed to complex regulatory loopholes, shell companies, offshore accounts, and weak enforcement mechanisms in both Dubai and Hong Kong.
These gaps are being exploited by criminal networks to launder money and finance illicit activities.
The report notes that Dubai's strategic location, booming real estate market, and business-friendly environment make it an attractive destination for both legitimate investors and criminal actors.
Similarly, Hong Kong's status as a major financial hub and gateway to mainland China makes it a critical node in global financial flows, but also vulnerable to money laundering activities.
The NFIU has warned Nigerian financial institutions to strengthen their monitoring systems and apply Enhanced Due Diligence procedures to detect and prevent suspicious transactions.
The agency has also urged stakeholders to prioritize early detection and reporting of suspicious activities linked to both cities.
The report highlights a sharp increase in suspicious transactions over time, with only 2 STRs worth ₦42 million recorded in 2021, compared to 202 reports with a total value of ₦32 billion in 2024.
The NFIU emphasizes that failure to act decisively could expose Nigeria to deeper financial crime risks and serious international reputational damage.
In light of these findings, the NFIU is calling on Nigerian financial stakeholders to take proactive measures to prevent and detect suspicious transactions, particularly those involving Dubai and Hong Kong. By working together, stakeholders can help protect the Nigerian financial system and contribute to the global fight against money laundering, terrorist financing, and proliferation financing.
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