The Nigerian Financial Intelligence Unit (NFIU) has raised alarm over an alarming surge in suspicious financial transactions from Nigeria to Dubai and Hong Kong —two jurisdictions it describes as emerging global hotspots for illicit financial flows.
In a report released in May 2025 and obtained by our correspondent on Tuesday, the NFIU revealed that it received 401 Suspicious Transaction Reports linked to both regions between January 2021 and September 2024, with the total value of the flagged transactions exceeding N48bn.
While only 185 of the STRs were connected to Dubai, they accounted for the bulk of the total value—N29.6bn.
The remaining 216 STRs were traced to Hong Kong, valued at N18.6bn.
“The NFIU finds it pertinent to issue this advisory to relevant stakeholders to employ Enhanced Due Diligence in the detection, deterrence, and prevention of abuse of the financial system through these hotspots,” the report stated. “Reporting suspicious transactions and activities flowing from these jurisdictions is critical to protecting the Nigerian financial system and contributing to the global fight against money laundering, terrorist financing, and proliferation financing.”
The report noted a disturbing trend: a steady and significant rise in suspicious financial activity to both destinations.
In 2021, only two STRs—valued at N42m—were reported. By 2024, that number had soared to 202 STRs with a combined value of N32bn.
The NFIU attributed this trend to a mix of complex regulatory loopholes, the proliferation of shell companies, offshore accounts, and weak enforcement mechanisms in both Dubai and Hong Kong.
These conditions, the agency said, have made both regions attractive to criminal networks.
“Dubai, a major financial and commercial centre in the Middle East, has become a focal point in the global fight against money laundering. Its strategic location, burgeoning real estate market, and business-friendly environment make it appealing to both legitimate investors and criminal actors,” the report noted.
It also referenced 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.
On Hong Kong, 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.”
In light of these findings, the NFIU has urged 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.
“This advisory is a call to arms for Nigerian financial stakeholders,” the report concluded. “Failure to act decisively could expose the country to deeper financial crime risks and serious international reputational damage.”
Madukwe B. Nwabuisi is an accomplished journalist renown for his fearless reporting style and extensive expertise in the field. He is an investigative journalist, who has established himself as a kamikaze reporter.
