By Admin
The Economic and Financial Crimes Commission (EFCC) has cautioned officials of the Central Bank of Nigeria (CBN), Benin Branch, against aiding cryptocurrency transactions linked to money laundering and terrorism financing.
The warning comes amid growing global concern over the misuse of virtual assets by criminal networks to move illicit funds across borders under the radar of regulatory authorities.
This warning was issued during a sensitisation lecture held on Thursday at the Benin office of the apex bank. The lecture, facilitated by the Benin Zonal Directorate of the EFCC, focused on the risks associated with virtual assets and the importance of anti-money laundering (AML) and counter-terrorism financing (CFT) measures.
Speaking at the session, the Head of the Special Control Unit against Money Laundering (SCUML), Superintendent Ibrahim Boyi, described money laundering as the process of disguising illegally obtained funds to make them appear legitimate.
He highlighted that terrorism financing often goes beyond just cash and may include logistical support, services, and even accommodation for criminal operations.
Boyi identified the three major stages of money laundering as placement, layering, and integration, noting that the consequences of unchecked laundering are dire. These, he said, include economic stagnation, damage to national reputation, reduced foreign investment, and erosion of public trust in financial institutions.
“Nigeria is a signatory to several international conventions and treaties targeted at combating money laundering and terrorism financing,” he stated. “Our commitment to the Financial Action Task Force (FATF) and the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) underpins the country’s resolve to clamp down on financial crimes.”
Also speaking, Deputy Superintendent of the EFCC, Joshua Abiama, delivered a presentation titled “The Use of Cryptocurrency in Money Laundering and Terrorist Financing.” He described cryptocurrencies such as Bitcoin as digital representations of value that, while not legal tender in most jurisdictions, are widely used as a medium of exchange and store of value.
Abiama noted that the anonymity and lack of Know-Your-Customer (KYC) protocols associated with cryptocurrency transactions make them attractive for criminal activities.
“Virtual currencies can be easily converted into fiat money and moved across borders with minimal oversight,” he warned. “Terrorist groups are leveraging these features to solicit donations, trade illicit goods on the dark web, and move funds undetected.”
The Acting Director of the EFCC Benin Zonal Directorate, Affa Okim, reiterated the Commission’s commitment to inter-agency collaboration. According to him, partnerships with institutions like the CBN are crucial in closing loopholes exploited by criminals.
Responding on behalf of the apex bank, the Benin Branch Controller, Akpanke Utande, expressed appreciation for the lecture, describing it as timely and insightful.
“This session has deepened our understanding of AML/CFT frameworks and enhanced our capacity to detect and prevent illicit financial activities,” Utande said.
Similarly, Mrs O. B. Smooth, Head of Currency Management Centre at the Benin branch of the CBN, praised the EFCC for honouring the bank’s invitation.
“This Knowledge Sharing Session is part of our monthly in-house training, and we found it imperative to engage the EFCC this month due to the growing complexities of financial crimes involving digital assets,” she said.
The event concluded with a renewed call for vigilance and inter-agency synergy in protecting Nigeria’s financial system from abuse.
