NFIU Seeks Advanced Technology to Combat Financial Crimes in Nigeria

The Nigerian Financial Intelligence Unit (NFIU) is ramping up efforts to combat financial crimes through advanced technology and enhanced collaboration as part of its drive to remove Nigeria from the Financial Action Task Force (FATF) grey list.

Speaking at a high-level conference organized in partnership with the London Stock Exchange Group (LSEG) Risk Intelligence, in Lagos on Thursday, NFIU’s General Counsel, Felix Obiamalu, revealed that the agency had established a special unit, “Emerging Technologies and Innovations sector” dedicated to integrating cutting-edge tools into its operations.

Obiamalu explained that the NFIU was automating processes and developing software to monitor and track financial crimes. “Criminals continuously exploit gaps in the system, but we are upgrading our capabilities and working with global software developers to stay ahead,” he said.

“The LSEG Risk Intelligence also have sophisticated technology tools that we can also leverage on to combat these financial crimes. That is the essence of such collaborations as the fight cannot be won in isolation,” he added, highlighting the role of partnerships in addressing the nation’s anti-money laundering and counter-financing of terrorism (AML/CFT) challenges.

Since being greylisted in February 2023 due to deficiencies identified during FATF’s mutual evaluation process, Obiamalu stressed that relevant stakeholders were working relentlessly.

“This conference is part of efforts to improve interagency cooperation, enhance information sharing, and ultimately build a sustainable AML/CFT framework,” he said, noting that the focus is not only on exiting the grey list but also on creating a system that can effectively address future challenges.

Che Sidanius, the Global Head of Financial Crime at the London Stock Exchange Group, highlighted the broader economic implications of Nigeria’s greylisting. “Being greylisted has a significant impact on foreign direct investment and how Nigeria is perceived internationally.

However, the commitment from both the government and private sector to address these challenges is clear, and that is the first and most critical step,” Sidanius remarked. He emphasized the need for capacity building, robust data utilization, and actionable strategies to strengthen existing frameworks.

The Chief Executive Officer of the NFIU, Hafsat Bakari, earlier in her address stressed that a coordinated approach is vital for success. “No single organization, public or private, can tackle the myriad financial crime challenges we face in isolation. Only through structured cooperation can we succeed,” she said.

Bakari pointed to the Bank Verification Number (BVN) initiative, partnership between the Central Bank of Nigeria (CBN) and commercial banks among other measures as an effective example of PPPs bolstering Nigeria’s AML/CFT framework.

“We, at the NFIU, recognize that gatekeepers in the financial and designated non-financial sectors are often the first to become aware of emerging trends and typologies. They have a wealth of intelligence and information that can contribute to more effective law enforcement responses across a variety of predicate crimes.

“It is therefore critical that we ensure a properly joined up approach, and this is reflected as a priority in our National AML/CFT/CPF Strategy. Therefore, our gathering today could not have come at a better time,” she added.