CBN Warns Against Illegal Financial Institutions

Nume Ekeghe

The Central Bank of Nigeria (CBN) has warned Nigerians against falling prey to illegal financial operators in the country and has urged Nigerians to verify the authenticity of such institutions by visiting its website and that of the Securities and Exchange Commission (SEC). 

A statement issued by the Financial Services Coordinating Committee (FSRCC) and made available on the website of the CBN, yesterday said the operation of the illegal financial institutions portend a danger to the stability of the Nigerian financial industry. 

It states: “The FSRCC wishes to draw the attention of the general public to the worrisome increase in the activities of the Illegal Financial Operators (IFOs) which portend grave risk to public confidence and the stability of the Nigerian Financial System.

“The general public is advised to refrain from dealing with unlicensed or illegal financial operators, who lure and defraud unsuspecting members of the public by offering extra-ordinary returns on investments as bait.

“Members of the public are advised to visit the websites of the CBN, SEC and other relevant member agencies of the FSRCC to verify the registration and license status of such companies and schemes before investing in them. You are also advised to report any individual or entities suspected to be involved in such nefarious activities to the law enforcement agencies.

“Financial Regulatory agencies shall continue to carry out all necessary due diligence before registering/licensing any operator under their regulatory purview. In addition, agencies shall refer to relevant supervisory authorities for confirmation before finalizing on any registration/licensing application. Member agencies are encouraged to engage in regular sensitization campaigns on the threats posed by the activities of Illegal Financial Operators.”