Money Laundering: EFCC Asks Banks to Reject Payment Instruction from NDDC *Magu worried over rising digital currency-related crimes

The Economic and Financial Crimes Commission (EFCC) on Thursday directed commercial banks not to honour any payment instruction from the Niger Delta Development Commission (NDDC).

The directive is predicated on an ongoing investigation by the agency that unraveled diversion of funds from a domiciled account at the Central Bank of Nigeria (CBN) to commercial banks.

This is coming as the acting Chairman of  EFCC, Ibrahim Magu, lamented the surge in the digital currency-related crimes in the country, saying the commission was inundated with petitions from victims. 

A copy of a letter obtained by THISDAY and addressed to the Managing Director, WEMA Bank PLC showed that EFCC was investigating a case of fraud, diversion of funds and money laundering by the Professor Nelson Brambaifa-led NDDC.

It said preliminary investigation showed that funds from the NDDC account domiciled in the Central Bank of Nigeria (CBN) were being diverted to commercial banks.

In view of the above, the EFCC asked commercial banks to reject payment instruction from NDDC to corporate bodies with accounts in commercial banks.

In the letter dated June 10, 2019  entitled: Investigation Activities: Re: Payment of Niger Delta Development Commission-NDDC", the agency said it was “investigating a case of fraud, diversion of funds and money laundering in which the above-named agency (NDDC) featured".

 “Preliminary investigation reveals that funds are being diverted from the above account domiciled in the CBN to commercial banks.

“In view of the above, you are requested to henceforth, reject any payments instruction from the accounts of the Niger Delta Development Commission to accounts of corporate bodies domiciled in your bank until further notice to forestall further diversion of the funds.”

“This request is made pursuant to Section 38 & 34 of the Economic and Financial Crimes Commission (Establishment) Act, 2004 and section 21 & 6 of the Money Laundering (Prohibition) Act, (as amended) 2011,” said the letter signed on behalf of Ahmed Lagos Zonal Head of the EFFC, Aminu Ado Aliyu.

When contacted, EFCC Spokesman, Tony Orilade, confirmed the authenticity of the document. He said the document emanated from EFCC.

Meanwhile, the acting Chairman of the Economic and Financial Crimes Commission, EFCC, Ibrahim Magu, has described as worrisome the surge in the digital currency-related crimes in the country, saying the commission was inundated with petitions from victims.

Magu raised the concern yesterday in Ibadan while delivering his speech at the opening of the 12th annual retreat for Heads of Security of Banks and Other Financial Institutions.

Themed “Fighting Financial Crimes in a Digital Economy”, the two-day retreat was organised by the Chartered Institute of Bankers of Nigeria, CIBN, with senior bank officials and heads of security agencies across the country in attendance.

In the speech delivered on his behalf by a senior official of the Commission, Hanafi Baba-Ahmed, the anti-corruption boss urged Nigerian bankers remain guided by the ethics of their profession in the discharge of their duties, adding that the commission, including other sister anti-graft agencies, would rely on their expertise to wage effective war against the digital currency fraud epidemic.