NFIU Investigates N48bn Suspicious Transfers To Dubai, Hong Kong

THE Nigerian Financial Intelligence Unit (NFIU) has alerted financial institutions to the surge in suspicious financial transactions from Nigeria to two emerging hotspots for illicit financial flows. Hong Kong and Dubai.
The NFIU, in a May 2025 report, noted an increasing number of Suspicious Transaction Reports (STRs) filed on transactions to these regions, saying: “It is pertinent to note that in 2021 only, two STRs, valued at just N42million were reported. However, by 2024, the value increased to 202 STRs valued at N32billion.
“Between January 2021 and September 2024, the NFIU received a total of 401 STRs from reporting entities, valued at over N48billion. 185 of these were linked to Dubai and 216 were linked to the Hong Kong axis.”
The NFIU urged financial institutions, designated non-financial businesses and professions and their regulators to apply enhanced due diligence, robust transaction monitoring and comprehensive reporting measures to transactions linked to Dubai and Hong Kong to detect, prevent and report suspicious financial transactions to mitigate the impacts of this emerging threat/vulnerability.
According to the report: “This ‘Dubai-Kong axis,’ as coined by Sussex researchers, has become a primary channel for IFFs (Illicit Financial Flows) due to its strategic positioning across Asia, the Middle East and links to former colonial networks that allow connectivity to Western financial markets.
“This axis is increasingly viewed as an attractive route for “dirty money” networks and is noted for its capacity to accommodate a range of illicit financial
activities due to differing regulatory standards and legal infrastructures.
“In view of the above, the NFIU finds it pertinent to issue this advisory to the relevant stakeholders to employ Enhanced Due Diligence (EDD) in the detection, deterrence and prevention of abuse of the financial system through these hotspots.”
NFIU cited high-profile cases, such as the 2020 Dubai Leaks scandal, which exposed how individuals facing international sanctions, alleged criminals and politically exposed persons owned significant real estate assets in the city.
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.”
As a result, NFIU charged Nigerian financial institutions and regulators to adopt Enhanced Due Diligence procedures, strengthen transaction monitoring frameworks, and prioritise timely reporting of suspicious transactions linked to Dubai and Hong Kong, adding: “This advisory is a call to arms for Nigerian financial stakeholders.
“Failure to act decisively could expose the country to deeper financial crime risks and serious international reputational damage.”