Banks, fintech firms, insurance companies, capital market operators, and other reporting entities flagged 82,143 suspicious transactions to the Nigerian Financial Intelligence Unit in 2024 amid intensified efforts to detect money laundering, terrorism financing, and other illicit financial activities.
The figure was contained in the NFIU’s 2024 Annual Report, which also revealed that the agency received 25,819,719 Currency Transaction Reports and 23,364 Suspicious Activity Reports during the year under review. The report, which was recently released on the NFIU’s website, was obtained by Sunday PUNCH on Friday.
According to the report, “During the review period, the NFIU received a total of 25,819,719 CTRs, 82,143 STRs, and 23,364 SARs.” The NFIU explained that it receives threshold-based disclosures, suspicious transaction and activity reports, as well as regulatory submissions relating to anti-money laundering, counter-terrorist financing, and counter-proliferation financing measures.
It added that it works closely with regulators, including the Central Bank of Nigeria, the National Insurance Commission, the Securities and Exchange Commission, and the Special Control Unit Against Money Laundering, to ensure compliance with relevant laws and regulations.
An analysis of the report showed that Deposit Money Banks accounted for the majority of suspicious transaction filings, submitting 73,531 reports, representing about 89.5 per cent of all STRs received during the year. Other Financial Institutions filed 5,442 reports, while capital market operators and insurance companies submitted 1,796 reports.
Designated Non-Financial Businesses and Professions accounted for 1,013 reports, while Virtual Asset Service Providers, which include digital asset operators, filed 361 suspicious transaction reports. The report noted that suspicious transaction reports are mandatory whenever a reporting entity determines that a transaction or activity may be linked to money laundering, terrorist financing, proliferation financing, or other unlawful conduct.
It stated, “Section 7 of the MLPAA requires all reporting entities, including financial institutions and designated non-financial institutions, to submit a report where there is a determination that the activity or transaction is suspicious and possibly linked to money laundering, terrorist financing, or other illegal activity.” Quarterly data showed a steady increase in suspicious transaction reporting by banks throughout the year.
DMBs filed 14,744 STRs in the first quarter, 17,031 in the second quarter, 20,052 in the third quarter, and 21,704 in the fourth quarter. Other Financial Institutions also recorded sustained growth, with filings rising from 842 in the first quarter to 1,908 in the fourth quarter.
The NFIU also received 23,364 Suspicious Activity Reports in 2024. Banks again accounted for the largest share with 19,873 reports, followed by Other Financial Institutions with 2,071 reports and capital market and insurance firms with 1,382 reports. DNFBPs filed 38 SARs, while no SARs were recorded from VASPs during the period.
Beyond suspicious transactions, reporting entities submitted 25.82 million Currency Transaction Reports to the NFIU. Deposit Money Banks accounted for 23.16 million of the reports, representing about 89.7 per cent of the total, while Other Financial Institutions filed 2.53 million reports.