In a significant statement this past Friday, the Economic and Financial Crimes Commission (EFCC) urged Nigerian banks to reinforce their integrity in the fight against financial crimes. This comes amid growing concerns that banks may inadvertently serve as channels for illicit activities, particularly as the nation strives for economic growth and stability.
During a courtesy visit from Moniepoint’s management team, led by founder and Group CEO Tosin Eniolorunda, EFCC Chairman Ola Olukoyede shared insights into the intricate relationship between financial institutions and economic crimes. Emphasizing the need for banks to champion ethical practices, Olukoyede stated, “Nigeria will be the greatest beneficiary when we do the right thing.”
This collaborative dialogue highlighted the critical role that banks, fintech companies, and regulatory bodies play in combating fraud. Notably, Olukoyede pointed out the importance of Know Your Customer (KYC) protocols, especially given the rise in financial activities among the unbanked and underserved populations. He stressed that the lack of stringent internal controls in fintechs could open the door to fraud.
“Don’t be a tool for criminal activities. Strengthening your internal systems is essential in preventing fraud,” Olukoyede advised Moniepoint, a prominent payment service provider that currently processes approximately 70% of Nigeria’s Point-of-Sale transactions.
In his remarks, Eniolorunda acknowledged the challenges presented by rapid growth within the fintech sector, stating that while efforts to provide financial services to the middle class and under-served populations have flourished, the company recognizes the associated risks of fraud. He noted the urgency of establishing a “strategic relationship” with the EFCC to address these challenges effectively.
As Moniepoint expands its footprint not only in Nigeria but also into international markets such as the UK, Kenya, and Tanzania, the pressing need for robust fraud prevention measures grows. Eniolorunda affirmed their commitment to enhancing KYC systems and collaborating with law enforcement agencies, stating, “We all see things differently. By sharing intelligence, we can unite in the fight against financial crimes.”
This partnership between the EFCC and industry stakeholders like Moniepoint represents a proactive step toward ensuring the growth of the Nigerian economy while safeguarding the financial system against corruption. With a focus on improving internal controls and adhering to ethical standards, both the EFCC and fintech companies can work together to create a more secure financial landscape in Nigeria.
As the country moves forward, maintaining a robust dialogue and fostering collaboration among all stakeholders will be essential in building a transparent and resilient financial ecosystem. This commitment to integrity not only protects the financial system but also nurtures the potential for sustained economic progress as Nigeria continues to harness the power of innovation in finance.
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