Nigeria’s anti-graft agency says banks and financial technology companies helped process at least 162 billion naira ($—) in cryptocurrency transactions and 18.7 billion naira linked to fraud, raising fresh concerns about weak controls in the fast-growing digital finance sector.
The Economic and Financial Crimes Commission said the transactions were uncovered during ongoing investigations into cybercrime, money laundering and investment scams, according to a statement released on Tuesday.
The commission said some licensed banks and fintech platforms failed to carry out adequate know-your-customer checks and transaction monitoring, allowing illicit funds to move through their systems. It added that several accounts used for the transactions have been frozen while suspects are being questioned.
Nigeria has seen rapid growth in digital payments and cryptocurrency use, driven by a young population and limited access to traditional banking. Regulators have repeatedly warned financial institutions to strengthen compliance as fraud and online scams rise.
The EFCC said it is working with the Central Bank of Nigeria and other regulators to tighten oversight of banks and fintechs, and vowed to prosecute any institution or individual found to have aided criminal activity.
Banks and fintech operators named in the investigations were not immediately identified.
