Nigeria investigates suspicious transfers to Dubai and Hong Kong, citing a surge in suspicious financial flows
By Jeph Ajobaju, Chief Copy Editor
Abuja warned of an alarming surge in suspicious financial transactions from Nigeria to Dubai and Hong Kong, two countries reportedly at the centre of global hotspots for illegal financial flows.
A report by the Nigerian Financial Intelligence Unit (NFIU) said the agency received 401 suspicious transaction reports (STRs) linked to both countries between January 2021 and September 2024, with the total value exceeding N48 billion.
The 185 STRs connected to Dubai accounted for N29.6 billion and 216 STRs traced to Hong Kong N18.6 billion.
“The NFIU finds it pertinent to issue this advisory to relevant stakeholders to employ Enhanced Due Diligence in the detection, deterrence, and prevention of abuse of the financial system through these hotspots,” the report said, per The PUNCH.
“Reporting suspicious transactions and activities flowing from these jurisdictions is critical to protecting the Nigerian financial system and contributing to the global fight against money laundering, terrorist financing, and proliferation financing.”
In 2021, only two STRs – valued at N42 million – were reported. By 2024, that number soared to 202 with a combined value of N32 billion.
The NFIU attributed this trend to a mix of complex regulatory loopholes, the proliferation of shell companies, offshore accounts, and weak enforcement mechanisms in both Dubai and Hong Kong.
These conditions, the agency stressed, make both countries attractive to criminal networks.
“Dubai, a major financial and commercial centre in the Middle East, has become a focal point in the global fight against money laundering.
“Its strategic location, burgeoning real estate market, and business-friendly environment make it appealing to both legitimate investors and criminal actors,” the report noted.
It also referenced high-profile cases such as the 2020 Dubai Leaks scandal, which exposed how individuals facing international sanctions, alleged criminals, and politically exposed persons owned significant real estate assets in the city.
“Hong Kong, a major financial hub in Asia, is similarly challenged by money laundering activities. Its role as an international finance centre and gateway to mainland China makes it a critical node in global financial flows.
“The city has witnessed a number of high-profile money laundering cases involving major international banks. These incidents underscore the ongoing challenge of balancing financial openness with effective regulatory oversight.”
The NFIU urged Nigerian financial institutions and regulators to adopt Enhanced Due Diligence procedures, strengthen transaction monitoring frameworks, and prioritise timely reporting of suspicious transactions linked to Dubai and Hong Kong.
“This advisory is a call to arms for Nigerian financial stakeholders. Failure to act decisively could expose the country to deeper financial crime risks and serious international reputational damage.”
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