NFIU probes N48bn in suspicious transfers to Dubai, Hong Kong

The Nigerian Financial Intelligence Unit (NFIU) has launched a probe into a troubling rise in suspicious financial transactions totalling over N48 billion linked to Dubai and Hong Kong—two international financial hubs increasingly flagged as hotspots for illicit money flows.

In a report released in May 2025 and obtained on Tuesday, the NFIU disclosed that it recorded 401 Suspicious Transaction Reports (STRs) between January 2021 and September 2024 related to transfers to the two destinations. Dubai accounted for 185 STRs with a total value of N29.6 billion, while 216 STRs connected to Hong Kong amounted to N18.6 billion.

Describing the development as a growing threat to Nigeria’s financial system, the NFIU warned that Dubai and Hong Kong are being exploited by criminal networks due to weak regulatory enforcement, proliferation of shell companies, and complex offshore arrangements.

“This advisory is intended to alert stakeholders to deploy Enhanced Due Diligence measures in identifying, preventing, and reporting illicit flows from these jurisdictions,” the agency stated. “Failure to respond effectively may heighten Nigeria’s exposure to financial crimes and reputational risks on the international stage.”

The data shows an alarming growth trajectory in these suspicious transactions. In 2021, just two STRs valued at N42 million were reported. By 2024, this figure had ballooned to 202 STRs totaling N32 billion, signalling an unprecedented surge.

According to the NFIU, Dubai’s popularity as a destination for questionable capital stems from its strategic location, booming real estate sector, and investor-friendly climate—factors which attract both legitimate businesses and illicit actors. The report referenced the 2020 Dubai Leaks scandal that implicated individuals under sanctions and politically exposed persons in massive property acquisitions.

In a similar vein, Hong Kong’s position as a key financial gateway to China and a magnet for global banking has made it vulnerable to money laundering schemes. The city has been rocked by multiple high-profile cases involving international financial institutions, underscoring the ongoing struggle to strike a balance between market openness and regulatory control.

The NFIU has now called on Nigerian banks and other financial institutions to intensify monitoring, improve reporting timelines, and implement stronger internal checks for any transactions involving the two jurisdictions.

“The Nigerian financial system must not become a conduit for global criminality,” the report emphasized. “This is a pivotal moment for our institutions to tighten controls and demonstrate resolve in combating cross-border financial crimes.”

The advisory is part of the agency’s broader campaign to protect Nigeria’s financial sector integrity and align with global anti-money laundering and counter-terrorist financing standards.