Abuja: The Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, announced a strategic shift in the commission’s operations towards proactive crime prevention, highlighting the introduction of a 72-hour window to freeze suspicious funds and a focus on cryptocurrency wallets.
According to News Agency of Nigeria, Olukoyede revealed these developments during a media session in Abuja, marking his third year in office. He emphasized the establishment of the Fraud Risk Assessment and Control Department (FRAC), designed to monitor and swiftly act on suspicious financial activities. “Why must we be waiting for money to be stolen? When we see money moving suspiciously, we move in and freeze. Pending 72 hours, we ask: where is this money going?” Olukoyede stated.
He provided examples of illicit financial flows, including a case where funds were funneled from a local government account into a company and subsequently into cryptocurrency wallets. Such practices, he noted, necessitate preemptive measures to combat evolving financial crimes. The chairman highlighted the challenge posed by public officials transferring stolen funds into crypto wallets within 24 hours, often with the involvement of younger accomplices.
To counteract this trend, Olukoyede disclosed that around 40 virtual asset platforms have been licensed in Nigeria, enhancing the EFCC’s ability to trace registered wallets. Additionally, with presidential approval, the commission has established a national confiscation wallet to store seized cryptocurrencies. “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 explained.
Olukoyede further discussed a shift in legal strategy, focusing on civil asset forfeiture under Section 17 of the Advance Fee Fraud Act, which allows for quicker resolution than traditional criminal trials. “This is faster and quicker than criminal trial. We don’t have to wait 10, 15 years when witnesses die and assets are dissipated,” he said.
Highlighting successful outcomes from this approach, Olukoyede shared that several ongoing cases involve assets linked to former officials. He clarified that the EFCC does not manage forfeited assets directly but engages professionals in accordance with the Proceeds of Crime Act 2022. The commission has also started selling depreciating assets under litigation, with proceeds placed in escrow accounts.
Olukoyede mentioned that high-profile hotels recently forfeited in Lagos are under new management, with banks directed to channel all sales and income to the EFCC. A dedicated Process and Proceeds Management (PCM) directorate has been established to oversee all forfeited assets.
The chairman concluded by emphasizing the need for robust policy and institutional reforms, asserting that law enforcement alone cannot win the battle against financial crime. He urged the media and civil society to actively participate as watchdogs in the fight against corruption.