From Juliana Taiwo-Obalonye, Abuja
Nigerian Financial Intelligence Unit (NFIU) has uncovered emerging tactics allegedly being deployed by terrorism financiers to conceal the identities of individuals controlling illicit funds, including the use of bank accounts belonging to women and deceased persons.
The agency also raised concerns over the use of pre-registered SIM cards and proxy accounts, warning that gaps in Nigeria’s financial and digital identification systems could make it harder to trace the beneficiaries of suspicious transactions.
The disclosure is contained in the NFIU’s 2025 Annual Report, which identified weak customer identification procedures, disconnected links between Subscriber Identification Module (SIM) registrations and Bank Verification Numbers (BVNs), as well as proxy accounts, as growing risks in the fight against money laundering and terrorism financing.
According to the report, some suspected terrorism financiers use SIM cards registered in the names of deceased persons or third parties to conceal their identities and distance themselves from transactions involving illicit funds.
The NFIU said the practice poses a challenge to investigators because phone numbers linked to mobile banking, transaction alerts and other financial services may belong to individuals with no connection to the transactions being conducted.
It said the arrangement effectively weakens the connection between SIM registration and BVN records, making it more difficult to establish the identity of the individuals ultimately benefiting from suspicious transactions.
The financial intelligence agency also identified proxy bank accounts as another method used to obscure the movement and control of illicit funds.
It said accounts are sometimes opened in the names of women, including wives, sisters and female associates, while male commanders, logistics managers or other operatives allegedly retain control of the accounts.
The NFIU described the practice as “identity laundering,” noting that the actual operators could have control of the ATM cards, mobile banking credentials and personal identification numbers attached to such accounts.
The agency further noted that some of the women whose identities are used in the arrangements may be unaware of the nature or scale of the transactions conducted through their accounts.
According to the NFIU, proxy accounts provide an additional layer between the individuals controlling illicit funds and the financial accounts through which the money is moved.
The agency said the findings underscored the need to strengthen the integration of Nigeria’s digital identity infrastructure, particularly the links between SIM registrations, BVNs and National Identification Numbers (NINs).
It also flagged weaknesses in customer identification procedures and limited oversight of some digital financial services as areas requiring urgent attention.
The disclosure comes against the backdrop of intensified efforts by Nigerian financial regulators and security agencies to disrupt terrorism financing, money laundering and other forms of financial crime.
The NFIU said closing vulnerabilities within the country’s digital identity and financial systems would strengthen the capacity of financial institutions and law enforcement agencies to trace suspicious transactions and establish the real beneficiaries of illicit funds.
(The Sun)
