The Economic and Financial Crimes Commission (EFCC) has disclosed that cryptocurrency is being used as a payment method for the illegal importation of arms into Nigeria. EFCC Chairman Ola Olukoyede revealed this during a meeting with participants of the Executive Intelligence Management Course (EIMC) 18 at the EFCC headquarters.
Key Highlights:
1. Cryptocurrency and Arms Trafficking
– Olukoyede expressed concern over the growing use of cryptocurrency by criminals to finance the illegal importation of arms, emphasizing the need for collective action to address this issue.
2. Sustained Security Challenges
– He highlighted how the flow of small arms and light weapons across borders, combined with the involvement of non-state actors in illegal activities, has exacerbated Nigeria’s security challenges, including insurgency, banditry, and kidnapping.
3. Role of Non-State Actors
– The EFCC is scrutinizing the activities of non-state actors, particularly NGOs operating in conflict zones like the Northeast. These organizations are now required to register with the Special Control Unit against Money Laundering (SCUML) and report cash movements to the EFCC.
4.International Collaboration
– The EFCC recently returned $120,548.43 and N70,602,841.46 to American, Spanish, and Swiss nationals who were defrauded by Nigerian criminals. This action demonstrates Nigeria’s commitment to international cooperation in combating financial crimes.
5. Call for Vigilance
– Olukoyede urged all stakeholders to take the issue of cryptocurrency-enabled crime seriously, noting that it poses a significant threat to national security and economic stability.
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Implications:
– The use of cryptocurrency in illegal activities underscores the need for enhanced regulatory frameworks and advanced forensic tools to track and disrupt illicit transactions.
– Strengthening oversight of non-state actors and improving cross-border collaboration are critical to addressing Nigeria’s security challenges.
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