NFIU receives report on N150trn ‘suspicious’ transactions in three months

About N150 trillion worth of transactions were reported as “suspicious” in the first three months of the year by the Nigeria Financial Intelligence Unit (NFIU).

In the report titled ‘Suspicious Transaction Report/Currency Transaction Reports (STR-CTRs)’, the financial intelligence agency stated that it recorded more suspicious transactions in the first quarter of 2022 than in the first three months of last year.

The N150 trillion recorded in the first quarter of 2022 is an increase of about 22.91 per cent from the N108.5 trillion suspicious transactions recorded in the same period in 20221, according to the NFIU.

”All Agency Businesses had an increase in CTR reported to the NFIU in Q1 2022 compared to Q1 2021 with the exception of Development Financial Institutions. Overall, the CTR received by the NFIU has increased by 22.91% in Q1 2022 compared to Q1 2021.”

The NFIU stated that several financial institutions and businesses in Nigeria reported to the Commission the suspected transactional fraud that was recorded over the period.

”All Agency Businesses had an increase in Suspicious Transactions Reported to the NFIU in Q1 2022 compared to Q1 2021 with the exception of Development Financial Institutions. Overall, the total number of STRs received by the NFIU across Agency Business has increased by 22.91 per cent in Q1 2022 compared to Q1 2021.”

According to the NFIU index, banks reported the highest number of cases involving “suspicious transactions” at 2,810,213 during the review period. Merchant banks were in second place with 14,810.

Also, asset management companies reported 8,237; microfinance banks reported 3,258; other financial institutions reported 2,729; insurance companies reported 2,474; first mortgage lenders reported 1,911, and stockbrokers reported 1,333.

Others include insurance brokers, which reported 467, finance firms,176; development financial institutions, 35; trustees, 264, and financial institutions.

The NFIU report stated that during the first quarter of 2022, the NFIU received reports of an estimated N149 trillion in failed “Currency Transactions” across financial sectors, an increase of about 22.91 per cent compared to reports it got in the first quarter of last year.

The report stated that in the first three months of last year, the NFIU recorded over N108.4 trillion in unsuccessful currency transactions.

According to the NFIU study, Asset Management Companies reported unsuccessful currency transactions totalling N419 billion in the first quarter of this year that did not meet their financial regulatory standards.

Banks reported over 145 trillion to the NFIU as failed currency transactions during the review period and Merchant Banks reported over N3 trillion in failed currency transactions.

Microfinance banks reported N54 billion; other financial institutions reported N248 billion; insurance companies reported N232 billion; Primary Mortgage Institutions reported N43 billion; and stock brokers reported N93 billion.

Others include trustees which reported 61 billion; insurance brokers reported 26 billion, and finance companies reported N9 billion.

NFIU said it received a total of 250 requests for information on security-related matters from the military, security agencies, authorities, and other law enforcement in the first quarter of the year.

The agency noted that there was an increase in domestic requests for information in the first quarter of 2022 compared to the first quarter of 2021 by 115 requests.

According to the report, the NFIU received a total of 103 requests for information on security-intelligence matters from the military and security agencies between January and March of this year. The Commission said it received 67 requests from the agencies in the first quarter of last year — at a difference of 36.

The financial intelligence agency said it received 101 requests for information on security-related issues from ”Other Competent Authorities” in the year 2022 and 11 were received for the last first quarter of 90.

While other ”Law Enforcement Agencies” requested a total of 46 information on security, the judiciary sector requested no information in 2022.

The NFIU received 18 security information from only 11 countries in the first quarter of 2022.

The NFIU said that it sent six security-related messages to the USA, three to the Czech Republic, two to the United Kingdom, and one each to Benin, Malta, South Africa, France, Italy, Turkey, and Taiwan.

According to the report, the number of requests for information that the NFIU forwarded to other nations in the first quarter of 2022 decreased by 26 when compared to the same period in 2021. The unit said it sent a total of 44 information requests on security-related matters to a total of 15 foreign nations.

”The UK, South Africa and Taiwan received Requests for Information from the NFIU in both Q1 2022 and Q1 2021. All other countries received Requests for Information from the NFIU in Q1 2022 or Q1 2021. Overall, there was a decline in Request for Information forwarded by the NFIU to other countries in Q1 2022 compared to Q1 2021 by 26 requests,” the report added.