Fintech operators crucial in anti-money laundering fight – NFIU

The Nigerian Financial Intelligence Unit (NFIU) has emphasised the importance of fintech operators in combating money laundering and terrorism financing in Nigeria.

Dr Muhammad Jiya, Associate Director, Analysis and Compliance at NFIU, said this during the Third Quarter Regulators Forum Webinar organised by Fintech Association of Nigeria (FinTechNGR).

The NFIU official stressed the need for Fintechs to do robust Know Your Customer (KYC) procedures, continuous monitoring and reporting of suspicious transactions.

He said regular risk assessment, collaboration with regulatory authorities and industry players were also crucial.

Jiya said that to combat fraudulent transactions, Fintechs needed to use blockchain and emerging technologies to enhance transparency and also leverage artificial intelligence and machine learning for compliance.

“Fintech operators must provide regular staff training on Anti-Money Laundering and Combating the Financing of Terrorism (AMSCFT) and promote customer awareness,” the official stressed.

Jiya urged fintech operators to join associations like FintechNGR to streamline efforts and improve their AMSCFT compliance.

“Nigeria’s removal from the Financial Action Task Force’s (FATF) grey list depends on collective efforts,” Jiya said.

It was reported that FATF in February 2023, added Nigeria to its list of countries under monitoring, designated as “Grey List.”

This listing requires the country to implement an action plan comprising 19 items before May 2025 to avoid the greater danger of upgrade to the “Black List” which comes with dire economic consequences.

Also, Mr Opeolu Oyebanji, Head, Cybersecurity, New Media and Information Security at Nigerian Communication Commission (NCC), stressed the importance of synergy in combating economic, financial and cyber crimes.

“Cybercrime is a borderless threat, requiring collective efforts to mitigate. We must work together to stay ahead of cyber threat actors,” Oyebanji said.

He said that to curb the menace the commission was committed to protecting the nation’s communication infrastructure from cyber attacks.

“The NCC has established partnerships with key stakeholders, including the Central Bank of Nigeria (CBN), Economic and Financial Crimes Commission (EFCC) and the Nigerian Police Force National Cybercrime Centre to tackle cyber crimes.

“The commission has also launched initiatives such as the National Cyber Security Policy and Strategy, Cybercrime Act 2024, and Computer Security Incident Response Team (CSIRT) to strengthen cybersecurity defenses,” he said.

Oyebanji noted that October had been dedicated as Nigeria’s Cyber Security Awareness month to educate citizens on best practices.

The NCC official urged stakeholders to remain vigilant and proactive in addressing cyber threats, emphasising the need for continuous collaboration.

“Nigeria’s cybersecurity is a collective responsibility. Let’s work together to safeguard our digital landscape,” the official added.