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The Economic and Financial Crimes Commission says it is moving from reactive investigations to early detection and prevention of financial crimes by freezing suspicious funds before they are dissipated.
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EFCC Chairman Ola Olukoyede says the commission’s Fraud Risk Assessment and Control Department monitors suspicious transactions and can intervene within 72 hours to determine the destination and source of funds.
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The anti-graft agency is strengthening its capacity to trace cryptocurrency transactions as criminals and corrupt officials increasingly move illicit funds into virtual wallets to frustrate recovery.
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Olukoyede says the EFCC is also relying on civil asset forfeiture and improved management of recovered assets to prevent lengthy criminal trials from allowing proceeds of crime to disappear.
September 01, (THEWILL) — The Economic and Financial Crimes Commission (EFCC) has unveiled a more aggressive strategy for tackling financial crimes, with the anti-graft agency shifting from waiting for offences to occur to detecting suspicious financial activities early and freezing funds before they can be moved beyond recovery.
EFCC Chairman, Ola Olukoyede, disclosed this during a media interactive session organised to mark his third year in office, stressing that preventing the dissipation of illicit funds was becoming more effective than investigating crimes after the money had already disappeared.
Olukoyede said the commission had established the Fraud Risk Assessment and Control Department (FRAC) to monitor suspicious financial movements and enable the agency to intervene within 72 hours.
“Why must we be waiting for money to be stolen? When we see money moving suspiciously, we move in and freeze. Within 72 hours, we ask: where is this money going?” he said.
According to him, the initiative was designed to allow the EFCC to interrogate unusual transactions before the funds are transferred through multiple accounts, converted into other assets or moved outside the reach of investigators.
He cited a case involving funds allegedly transferred from a local government account to a company and subsequently moved into cryptocurrency wallets, describing such transactions as examples of the sophisticated methods now being used to conceal proceeds of crime.
The EFCC chairman said the increasing use of cryptocurrencies had further complicated the recovery of stolen public funds, particularly as corrupt officials could now move large sums into virtual wallets within a very short period.
“Public officials are now stealing funds and moving them into crypto wallets within 24 hours, often through young people,” he said, noting that such transactions could make the recovery of illicit proceeds significantly more difficult.
Olukoyede warned that the speed and anonymity associated with digital financial transactions posed a serious threat to Nigeria’s financial system.
“At the press of a button, you can collapse the entire banking industry in Nigeria. Most of the data we are investigating now, you can’t trace tangible assets to them,” he said.
EFCC Builds Crypto Tracking Capacity
To confront the growing use of virtual assets for money laundering and other financial crimes, Olukoyede said Nigeria had licensed about 40 virtual asset platforms, giving the EFCC greater capacity to trace transactions involving registered cryptocurrency wallets.
He said the commission was also working with relevant government agencies to ensure that seized cryptocurrencies could be secured rather than becoming another challenge after recovery.
According to him, presidential approval had facilitated the establishment of a national confiscation wallet where cryptocurrencies seized by law enforcement agencies can be kept pending further legal processes.
“One of the problems we used to have was where do you put confiscated virtual assets? Today we have a national wallet that we put them into,” he said.
The development, he explained, would help close a major gap in the management of digital assets recovered during financial crime investigations.
EFCC Turns To Civil Forfeiture
Olukoyede also disclosed that the EFCC was increasingly relying on civil asset forfeiture to recover suspected proceeds of crime without being compelled to wait for lengthy criminal trials to be concluded.
He said the commission was leveraging Section 17 of the Advance Fee Fraud Act to pursue assets directly where circumstances warranted such action.
“This is faster and quicker than a criminal trial. We don’t have to wait 10, 15 years when witnesses die and assets are dissipated,” he said.
Under the civil forfeiture process, according to the EFCC chairman, proceedings can be instituted against the asset itself, requiring anyone claiming ownership to explain the legitimate source of the funds used to acquire it.
He said the approach had produced results in several ongoing cases involving assets allegedly linked to former public officials.
Olukoyede maintained that the objective was not merely to prosecute individuals but to ensure that suspected proceeds of corruption and other financial crimes were recovered and prevented from being dissipated while cases remained before the courts.
The EFCC chairman also explained that the commission had strengthened its system for managing assets recovered or forfeited through court processes.
He emphasised that the EFCC itself does not directly manage every category of forfeited asset but engages professionals with the expertise required to preserve their value, in line with the Proceeds of Crime Act 2022.
“For real estate we have estate managers. For virtual assets we have stock market professionals. For a radio station we call broadcast experts,” he said.
He added that the commission had started disposing of certain assets whose values were depreciating while litigation was ongoing, with the proceeds being kept in escrow accounts until the courts determine their final status.
According to him, the approach is intended to prevent recovered assets from losing substantial value while remaining under litigation.
Olukoyede further disclosed that some high-profile hotels recently forfeited in Lagos had been placed under new management, while banks had been directed to remit their sales proceeds and income to the EFCC.
He said the commission had also created a dedicated Process and Proceeds Management (PCM) Directorate to coordinate the management of forfeited and recovered assets.
Olukoyede Seeks Institutional Reforms
Beyond investigations and prosecutions, the EFCC chairman said Nigeria must address the institutional weaknesses that allow financial crimes to occur in the first place.
He argued that law enforcement agencies alone could not win the fight against corruption if loopholes within government and financial institutions remained open.
“The most effective system is not law enforcement. It is the policy regime, institutional reforms that close leakages,” Olukoyede said.
He called for stronger policies and institutional mechanisms capable of preventing the diversion of public resources, stressing that plugging systemic loopholes would be more effective in the long term than relying solely on arrests and prosecutions.
The EFCC boss also urged the media and civil society organisations to strengthen their watchdog roles by investigating, exposing and drawing attention to suspicious financial activities and corruption.
Felix Ifijeh is a journalist with years of professional reporting experience. Known for his keen news sense, compelling storytelling and commitment to accurate, impactful reporting, he has built a reputation for turning leads into clear, engaging, and well-structured reports that resonate with readers. His work reflects deep newsroom experience and a commitment to accurate, impactful journalism.
