.Signs MoU with NFIU on fraudulent transactions
By Valentine Amanze
The Securities and Exchange Commission (SEC) has started verifying claims of 4,160 unpaid investors of the illegal investment scheme organised by Dantata Success and Profitable Company.
The verification exercise commenced on Monday July 15, 2019 and is expected to last till Saturday July 20, 2019, with 4,160 investors undergoing verification.
SEC said that investors were required to go along with the original receipts evidencing their payments or bank tellers for deposit into the company’s account, valid means of identification and bank account details.
It said that the commencement of the verification exercise was sequel to the appointment of joint administrators/ trustees for Dantata Success and Profitable Company and in pursuant to section 13 and 173 of the Investment and Securities Act, and consequent to an Ex parte Order granted by the Federal High Court, Kano.
A total of 478 investors were scheduled for Monday, 780 for Tuesday, 1,272 for Wednesday and Thursday, and 1,630 for Friday and Saturday.
SEC said, “The verification exercise will hold in Kano from 9:00am to 4:00pm daily. All unpaid investors are necessarily advised to attend in person as attendance by proxy is not acceptable.”
SEC had in February sealed off the premises of Dantata Success and Profitable Company in Kano for engaging in illegal capital market activities, saying its investment operations fell within fund management without registration with the commission.
It said the company was not registered and that it was using a strategy to solicit funds from unsuspecting members of the public by enticing them with returns of monthly interest on investment of between 25 to 50 per cent, depending on the nature and type of the investment.
The company sold forms to prospective investors according to their investment plans ranging from N1,000 to N3,000, with the minimum amount investable being N50,000 and a maximum amount of N5 million.
SEC had first indicated its plans to commence a verification exercise for people who invested with the company in May.
Meanwhile,
SEC and the Nigerian Financial Intelligence Unit (NFIU) have agreed to collaborate in combating crime in the Nigerian capital market to ensure that suspicious transactions are eradicated from the capital.
Ag. DG of the SEC, Ms. Mary Uduk, who spoke in Abuja during the signing of a Memorandum of Understanding, MoU with the NFIU, said the collaboration was necessary in order to close ranks in the face of insider dealings, re-awakening of Ponzi schemes, cybercrime and other fraudulent activities that have engulfed the market in the last few years.
Uduk said the Commission is paying close attention to digital transactions and was in the process of amending its rules to capture such transactions.
The acting DG disclosed that the Commission already has regulations that prohibits shell companies from operating in the capital market and implored the NFIU to assist with solutions to track suspicious transactions as they occur.
“If we have solutions that will help us track transactions, it will reduce incidence of insider dealing greatly. We would be very willing to collaborate with you on that in our determination to ensure that our markets are efficient and transparent and all investors are protected,” Uduk said.
According to Uduk, some areas where the MoU seeks Cooperation of both Agencies includes training, secondment of middle cadre officers between both organisations, cross boarder monitoring, repatriation of stolen funds from the Capital market and prosecution of offenders amongst others.
On the rising spate of Ponzi schemes in the country, Uduk stressed the need for more collaboration between both organisations and further sensitization to ensure unsuspecting Nigerians do not continue to lose their hard earned money.
In his remarks, Director of NFIU, Mr. Modibbo Tukur, Commended the SEC for the relationship that has existed between both organisations and assured that the NFIU would continue to play its part in ensuring that the financial system is safe for Nigerians to operate.
To this end, Tukur disclosed that the NFIU was making efforts to ensure that the financial system is rid of shell companies adding that for companies to exist, they should have physical addresses.
“If anyone establishes a company, it has to be a company indeed and we have to be firm on this. This has become more important now given the roll out of the ECOWAS single currency, because with that, we know that capital and investments will move across borders and it is a single currency. So we have to step up regulation to avoid fraudulent transactions.
“We will commence by September and some companies would have to be deregistered if they do not meet the criteria. We will publish the parameters and also give them enough time to regularise after which those that do not comply before the deadline will be shut down. If you have an empty company hanging in the system, it is a potential danger and we should not allow it to thrive” Tukur said.
Tukur stated that by the time the NFIU commences the due diligence on the shell companies, the information will be shared with the SEC for their further action and commended the SEC on its regulation that does not presently allow shell companies to operate in the capital market.
“Analysis would now be digital so the organisation would be able to share information on transactions as fast as possible adding that the capital market being a very sensitive one, care has to be taken on information dissemination to avoid disruptions” he added.
