A startling revelation from the Nigeria Inter-Bank Settlement System (NIBSS) has exposed a critical vulnerability in the nation’s financial security, accusing Nigerian banks and fintech companies of systematically disregarding the Central Bank of Nigeria’s (CBN) daily withdrawal limits. This alleged disregard, NIBSS asserts, is enabling fraudsters to siphon off exorbitant sums of money, severely undermining the integrity of the financial system. Naija247news gathered that NIBSS’s latest fraud report details instances where fraudsters circumvented the mandated N5 million daily withdrawal limit, with one wallet alone seeing a staggering N374 million withdrawn in a single day.
Naija247news understands that this blatant violation of the CBN’s Know Your Customer (KYC) and Customer Due Diligence (CDD) requirements, specifically Section 16.0 of the Regulatory Framework for Mobile Money Services, is a major contributing factor to the escalating fraud landscape. According to Naija247news, the report highlights cases where multiple wallets received and instantly disbursed hundreds of millions of naira, pointing to a systemic failure in enforcing regulatory compliance.
Naija247news reports that NIBSS has flagged the practice of increasing maximum transfer limits on wallets and accounts without any supporting historical transaction data, a clear red flag for potential fraudulent activity. This practice, the report suggests, is providing a fertile ground for fraudsters to operate with impunity.
The allegations have ignited concerns about the effectiveness of regulatory oversight and the commitment of financial institutions to safeguarding customer funds. Naija247news gathered that the NIBSS report calls for immediate action to address the identified loopholes and enforce stricter adherence to the CBN’s directives.
The revelation of such large-scale breaches raises serious questions about the internal control mechanisms of banks and fintechs. Naija247news understands that the financial community is now demanding a swift and transparent investigation to identify the institutions involved and hold them accountable.
The NIBSS report serves as a stark reminder of the ongoing battle against financial fraud and the urgent need for robust regulatory compliance. According to Naija247news, this situation calls for a collaborative effort between the CBN, NIBSS, banks, and fintechs to strengthen security measures and restore public trust in the financial system. The scale of the fraud that is now being highlighted, has caused a level of shock to the public.
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Reporting by Agnes Ekebuike Editor, Naija247news in Lagos, Nigeria.
