×
  • Business - Banking & Finance
  • Updated: October 20, 2020

CBN, GTBank, Others To Clampdown On Customers Receiving 'Sudden Funds' Into Accounts

CBN, GTBank, Others To Clampdown On Customers Receiving 'Sud

GTBank, Access Bank, Zenith Bank, and other banks in Nigeria will clampdown on some of their customers due to sudden transfer of funds to their account. AllNews gathered that account holders receiving funds from unrelated third parties are suspected of frauds.

This was seen by AllNews in a circular from the Central Bank of Nigeria (CBN). The bank said Nigeria Financial Intelligence Unit (NFIU) discovered an increase in suspicious transactions, and banks must take proactive steps to address it.

It was gathered that during COVID-19 outbreak, an hike was discovered in suspicious transactions, which includes fraud, counterfeiting and substandard goods, diversion of public funds. Part of the suspicious transactions also include the use of Non-governmental Organisation to receive questionnable funds as donations.

READ ALSO: Steps For N-Power Beneficiaries To Earn Lifetime Income

Activities Of The Suspected Fraudsters Accounts

The circular stated that customers accounts with little or no activity suddenly receiving funds from one or more unrelated third parties, only for the funds to be transferred to one or more unrelated third parties.

Also, E-commerce merchant with little or no history or internet presence suddenly receiving multiple payments from unrelated third parties. The CBN circular also noted customers engaging in the supply or purchase of medical supplies, as well as payment for goods and services associated to known brands, yet the beneficiary is an individual, not corporate body.

Funds were also said to have been transferred from government account to personal accoun, while there were usual volume of transactions, including large and frequent cash withdrawals and deposits.

READ ALSO: What Every Nigerian Thinks About Loans And Why It Should Change? By Pelumi Olowoyeye

CBN Instruction To Nigerian Banks

To tackle the increase in the fraudulent activities, CBN directed Nigerian banks to, "adapt rapidly and keep abreast with emerging risks and other developments, while taking proactive steps to address the new and emerging ML/TL risks."

In the same circular, CBN told financial institutions that they hereby advised banks "to update Alert protocol in your AML/CFT monitoring tools in line with the red flags and emerging trends arising from the COVID-19 related financial crimes."

Related Topics

Join our Telegram platform to get news update Join Now

0 Comment(s)

See this post in...

Notice

We have selected third parties to use cookies for technical purposes as specified in the Cookie Policy. Use the “Accept All” button to consent or “Customize” button to set your cookie tracking settings