The Nigerian Financial Intelligence Unit (NFIU) has raised a red flag over the growing volume of suspicious financial transactions from Nigeria to two rising hubs for illicit financial flows — Hong Kong and Dubai.
In a report released in May 2025, the NFIU noted a significant uptick in Suspicious Transaction Reports (STRs) related to transfers to these regions.
“It is pertinent to note that in 2021 only 2 STRs valued at just ₦42 million were reported. However, by 2024 the value increased to 202 STRs valued at ₦32 billion.
“Between January 2021 and September 2024, the NFIU received a total of 401 suspicious transaction reports (STRs) from reporting entities valued at over ₦48 billion. 185 of these were linked to Dubai and 216 were linked to the Hong Kong axis,” the report partly read.
As a result, the NFIU has called on financial institutions, designated non-financial businesses and professions, as well as their regulators, to strengthen due diligence processes, enhance transaction monitoring systems, and maintain rigorous reporting standards for activities tied to Dubai and Hong Kong. The goal is to effectively detect, prevent, and report suspicious activities in order to counter this emerging risk.
The report added, “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.”