EFCC raises fresh alarm over crypto, Ponzhi schemes, cautions NGOs, CSOs

The Economic and Financial Crimes Commission, EFCC, has, again, raised an alarm at the rate Nigerians send petitions to the Commission on fraudulent investments that promise high return with little risks to investors.

According to a statement by the spokesman of the commission, Mr. Wilson Uwujaren, the trend indicates that investment scams continue to thrive despite the enforcement and public enlightenment interventions by the Commission and other stakeholders.

“The direct implication is that hapless citizens are losing their hard-earned money to fraudsters, compounding the nation’s economic woes. Many have lost, and are still losing, money to Ponzi schemes, forex trading and most recently Bitcoin trading.

“Though risk-taking is considered by some as the oxygen that drives investment decisions, the Commission wishes to warn the public against taking unmitigated risk in desperation to earn a windfall. Investment in Bitcoin, for instance, is a high risk activity as the terrain is largely unregulated, and prone to fraud.

“The EFCC wishes to state that, while it will continue to investigate and prosecute persons complicit in fraudulent investment schemes, it is incumbent on the investing public to be circumspect in their investment decisions. Any investment that promises returns that look too good to be true should be considered a red flag.

“Nigerians are by this notice, warned to be wary of fraudulent schemes and are hereby enjoined to resist the temptation of quick gain that could end in misery.

“Those who ignore this advisory, do so at their own risks,” the statement added.

Meanwhile, the Head of the Economic and Financial Crimes Commission, EFCC, Lagos Zonal Office, Ahmed Ghali, has said that Non-Governmental Organisations, NGOs and Civil Society Organisations, CSOs, have critical roles to play, in curbing money laundering and terrorism financing in Nigeria.

He stated this on Monday at a seminar jointly organised by ECOWAS, the Inter-Governmental Action Group against Money Laundering in West Africa, GIABA,  
AML/CFT Forum, Nigeria and NGOs/ CSOs Consortium in Ikeja, Lagos.

Delivering a paper titled, “The Role of Non-Governmental Organisations and Civil Society Organisations in Countering Terrorism Financing in Nigeria”, Ghali stressed the law will not spare any NGO/CSO that allows itself to be a tool for perpetrating money laundering or terrorism financing in Nigeria.

“The varied funding sources and the ability of NGOs and CSOs to process large amounts of cash to beneficiaries and regularly transmitting funds between jurisdictions make them prone to money laundering and financing of terrorism,” he said.

According to him, it is mandatory to report to the Special Control Unit against Money Laundering, SCUML, any transaction through any formal financial channels in excess of $10,000 and any cash donations in excess of $1,000.

“Failure to do this is punishable by the law,” he said.