The Nigeria Financial Intelligence Unit (NFIU) has uncovered new methods allegedly being used to finance terrorist activities in Nigeria, including crowdfunding networks, accounts linked to deceased persons and bank accounts operated through female proxies.
The NFIU said the emerging schemes are designed to conceal the identities of terrorist financiers and make it harder for investigators to trace the movement of illicit funds.
According to the unit, some terrorist financiers have opened bank accounts in the names of women, including wives, sisters and female associates, while male commanders or logistics operatives secretly control the accounts.
The NFIU described the practice as a form of identity laundering, noting that the men may possess the account holders’ ATM cards, mobile banking credentials and PINs. In some cases, the women may not be aware of the nature or volume of transactions conducted through their accounts.
The financial intelligence agency also identified the use of telephone numbers that are not registered to the actual account holders or beneficiaries.
It said facilitators were using pre-registered SIM cards, numbers registered to deceased persons and SIMs connected to proxy account holders to weaken the link between bank accounts, telephone numbers and Bank Verification Numbers.
The NFIU said this practice can make it difficult for investigators to identify the individuals actually controlling the funds.
Crowdfunding and Digital Platforms
The agency also raised concerns about the growing use of crowdfunding and digital platforms to raise and move money linked to terrorist activities.
It said terrorist networks were exploiting weaknesses in fintech onboarding processes, including accounts that require limited identification, while digital platforms could be used to recruit unsuspecting individuals and facilitate the movement of funds.
The NFIU further identified the use of coded or detailed transaction descriptions to disguise terrorist-related financial activity.
According to the report, some cells, including those linked to the Islamic State West Africa Province, use detailed transaction narrations as an internal accounting mechanism.
Frequent logistics payments from one source to several recipients were identified as another pattern that could indicate an organised financial network.
Government Accounts Also Flagged
The NFIU said vulnerabilities in public-sector financial management remain another area of concern.
It identified the diversion of state and local government funds through accounts belonging to finance officers and third parties as a potential channel for illicit financial activity.
The latest findings highlight the growing sophistication of terrorist financing networks and the increasing use of legitimate financial and digital systems to conceal the movement of illicit funds.
The revelations come as Nigerian security agencies intensify efforts to disrupt the financial networks supporting terrorism, including operations targeting terrorist logistics, financiers and collaborators.
