ABUJA, Nigeria (VOICE OF NAIJA)-The Nigerian Financial Intelligence Unit (NFIU) has raised concerns over a sharp increase in suspicious financial transactions flowing from Nigeria to Dubai and Hong Kong two destinations it describes as emerging global hotspots for illicit financial flows.
According to a report released in May 2025 and obtained by our correspondent on Tuesday, the NFIU disclosed that between January 2021 and September 2024, it received 401 Suspicious Transaction Reports (STRs) linked to both jurisdictions.
The cumulative value of the flagged transactions surpassed N48 billion.
Of the total, 185 STRs were associated with Dubai, accounting for N29.6 billion, while the remaining 216 were linked to Hong Kong, with a total value of N18.6 billion.
“The NFIU finds it pertinent to issue this advisory to relevant stakeholders to employ Enhanced Due Diligence in the detection, deterrence, and prevention of abuse of the financial system through these hotspots,” the report stated.
“Reporting suspicious transactions and activities flowing from these jurisdictions is critical to protecting the Nigerian financial system and contributing to the global fight against money laundering, terrorist financing, and proliferation financing.”
The report highlighted a troubling upward trend. In 2021, only two STRs were recorded, valued at N42 million.
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By 2024, the number had surged to 202 reports, involving transactions worth ₦32 billion.
The agency attributed the escalation to regulatory gaps, the presence of shell companies, offshore accounts, and weak enforcement mechanisms in both regions—factors that have made them attractive to criminal enterprises.
“Dubai, a major financial and commercial centre in the Middle East, has become a focal point in the global fight against money laundering. Its strategic location, burgeoning real estate market, and business-friendly environment make it appealing to both legitimate investors and criminal actors,” the report noted.
The NFIU also cited the 2020 Dubai Leaks scandal, which revealed how individuals under international sanctions, suspected criminals, and politically exposed persons acquired significant real estate holdings in the city.
Regarding Hong Kong, the report stated: “Hong Kong, a major financial hub in Asia, is similarly challenged by money laundering activities. Its role as an international finance centre and gateway to mainland China makes it a critical node in global financial flows.
“The city has witnessed a number of high-profile money laundering cases involving major international banks. These incidents underscore the ongoing challenge of balancing financial openness with effective regulatory oversight.”
In response to these developments, the NFIU is urging Nigerian financial institutions and regulators to strengthen transaction monitoring systems, enforce Enhanced Due Diligence, and report any suspicious activity linked to Dubai and Hong Kong without delay.
“This advisory is a call to arms for Nigerian financial stakeholders,” the report concluded. “Failure to act decisively could expose the country to deeper financial crime risks and serious international reputational damage.”