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CBN Urges Nigerians To Shun Unlicensed Financial Operators

The Central Bank of Nigeria (CBN) has advised Nigerians and other residents in the country to stop dealing with unlicensed or illegal financial operators in the country in view of the risks associated with any financial transactions with them.

The apex bank gave the advice in a statement posted on its website on Monday through its Financial Services Regulation Coordinating Committee (FSRCC), gave the advice.

It stated that the illegal financial operators usually lure to defraud unsuspecting members of the public by offering extraordinary returns on investments as bait.

The CBN described the increasing activities of Illegal Financial Operators (IFOs) as worrisome, noting that such activities portend a grave risk to public confidence and the stability of the Nigerian financial system.

It advised: “The general public is advised to refrain from dealing with unlicensed or illegal financial operators, who lure and defraud unsuspecting members of the public by offering extra-ordinary returns on investments as bait.

“Members of the public are advised to visit the websites of the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC) and other relevant member agencies of the FSRCC to verify the registration and license status of such companies and schemes before investing in them.

“You are also advised to report any individual or entities suspected to be involved in such nefarious activities to the law enforcement agencies”, it added.

The apex bank further assured that financial regulatory agencies shall continue to carry out all necessary due diligence before registering or licensing any operator under their regulatory purview.

It expatiated that in addition, agencies shall refer to relevant supervisory authorities for confirmation before finalising on any registration/licensing application,” the apex bank added.

The CBN urged member-agencies to engage in regular sensitisation campaigns on the threats posed by the activities of illegal financial operators

In addition, it also urged the general public to address further enquiries to the Director, Financial Policy and Regulation, Central Bank of Nigeria, and/or the Executive Commissioner, Legal and Enforcement, Securities and Exchange Commission (SEC).

 

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