How New Generation Bank Helped Fraudster Maintain 960 Bank Accounts

The Economic and Financial Crimes Commission (EFCC) has implicated a new generation bank, over helping a fraudster maintain 960 bank accounts.

it has also stated that the new generation bank, alongside six Fintechs and microfinance banks are indeed being fingered in major financial scams amounting to huge sums of money.

The commission stated these through Director of public Affairs, Mr Wilson Uwujaren at a press briefing at the commission’s headquarters in Abuja today.

“A total sum of N18.1 billion was moved through the financial system without due diligence of customers by the banks”, the commission said, adding:

“It is worrisome that investigations by the commission showed that cryptocurrency transactions to the tune of N162 billion passed through a new generation bank without any due diligence.

“Investigations showed that a single customer maintained 960 accounts in another new bank and all the accounts were used for fraudulent purposes.

“That is bad news but the good news is that following our intervention the commission has been able to recover N33.62 million, which has been returned to some of the victims.”

The afore-stated institutions were accessories in illegal crypto currency transactions worth N162 billion.

The transactions were in the last financial year, said the commission, with the financial institutions allowing the fraudsters to safely change their ill-gotten gains into digital assets and move them to safe destinations.

These he said, were clearly in compromise of banking procedures.

He explained that the scams were in two categories, adding that the first was a syndicate of fraudsters that employed an airline discount scheme to lure their victims.

“The payment module is designed in such a way that the victims’ payment is actually made into the account of the airline.

“After payment is made the passenger’s entire funds in his bank account are emptied.

“Investigations showed that more than 700 victims have been scammed so far, with a loss of N651 million,” he said.

EFCC investigations show that the scheme is being masterminded by a foreign national, even as another scheme involved a company named Fred and Farid Investment Limited, simply called FF investment, which lured Nigerians into a bogus investment arrangement.

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“More than 200, 000 victims have been defrauded in this regard. A total sum of N18 billion was raked in through nine companies offering diverse investment packages.

“The companies are: Credio Banco Limited; Deliberty Rock Limited; Liam Chumeks Global Service; Ngwuoke Daniels Technology; and Icons Autos and Import Merchant.

“Others are : Newpace Technology Services Limited, Primepath Ways Ventures Limited, Kaka Synergy Network Limited and Sunlight Tech Hub Services Limited.”

“The Commission is calling on regulatory bodies to bring financial institutions to compulsory compliance with regulations in the areas of Know Your Customers (KYC), Customer Due Diligence (CDD), Suspicious Transaction Reports (STRs) and others.

“Deposit Money Banks, Fintechs, Micro Finance Banks found to be aiding and abetting fraudsters should be suspended and referred to the EFCC for thorough investigation and possible prosecution.

“Negligence and failure to monitor suspicious and structured transactions by banks should no longer be allowed,” he said.