• 28 May, 2025
• FAITH MIMDOO KEGH
• No comment

NFIU Flags Over ₦48 Billion in Suspicious Transfers to Dubai and Hong Kong.

The Nigerian Financial Intelligence Unit (NFIU) has raised concerns over a sharp rise in suspicious financial transactions flowing from Nigeria to Dubai and Hong Kong —two

international financial hubs now identified as emerging hotspots for illicit financial activity.

In a report released this month, the NFIU revealed it had received  401 Suspicious Transaction Reports (STRs) between January 2021 and September 2024, totaling over  ₦48 billion.

Of those, 185 transactions were linked to Dubai, accounting for approximately  ₦29.6 billion, while 216 transactions were traced to Hong Kong, amounting to   ₦18.6 billion.

   These patterns show a disturbing trend,” the NFIU noted. “Financial institutions must apply Enhanced Due Diligence to detect, prevent, and report misuse of the financial system through these destinations.

  A Growing Problem

The data shows a dramatic increase in suspicious activity over just a few years. In 2021, only two STRs (worth ₦42 million) were recorded. By 2024, that number surged to 202 reports, totaling ₦32 billion.

According to the NFIU, this trend is fueled by several factors: weak regulatory oversight, widespread use of shell companies and offshore accounts, and lax enforcement in both Dubai and Hong Kong.

   Why Dubai and Hong Kong?

The report highlights the appeal of these two regions:

    Dubai has become a key location in global financial flows due to its strategic position, booming real estate market, and pro-business environment. However, it has also gained notoriety as a haven for money laundering, particularly after the 2020 Dubai Leaks, which exposed how criminals and politically exposed persons owned significant assets there.

    Hong Kong, a major Asian financial hub, faces similar challenges. Its status as a gateway to China and home to several international banks makes it vulnerable to high-profile laundering cases, even as authorities attempt to strike a balance between financial openness and regulatory control.

   A Call to Action

The NFIU is urging Nigerian banks and regulators to strengthen monitoring systems, enhance due diligence, and  report suspicious activities promptly, particularly those involving Dubai and Hong Kong.

  This is a crucial warning,” the agency concluded. “If we fail to respond, Nigeria risks becoming even more vulnerable to financial crimes—and the reputational damage could be significant.”

FAITH MIMDOO KEGH

Manager – Oversees the daily operations, editorial planning, and strategic direction of the platform. A graduate with a solid academic foundation in media and communication, Faith brings a wealth of experience to the TokinPoint.

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