Terrorist financiers are increasingly exploiting proxy bank accounts, pre-registered SIM cards and phone numbers registered to deceased persons to conceal the identities of those controlling illicit funds, the Nigerian Financial Intelligence Unit (NFIU) has disclosed.
The disclosure was contained in the NFIU’s 2025 Annual Report, which identified weak customer identification controls, disconnected SIM-BVN linkages and limited oversight of some digital financial services as emerging enablers of financial crime and terrorist financing in Nigeria.
According to the agency, criminals have exploited gaps in the linkage between mobile phone identities and verified financial records, making it more difficult for investigators to trace the real beneficiaries of suspicious transactions.
The NFIU said pre-registered SIM cards, SIMs registered in the names of deceased persons and numbers linked to gender-based proxies are among the methods allegedly being used to disguise the identities of individuals behind illicit financial activities.
The agency said such practices can disrupt the audit trail normally followed by investigators, allowing the actual facilitators of illicit transactions to remain hidden while registered phone-number owners become the apparent subjects of investigation.
The NFIU also identified the use of women as financial proxies as another method allegedly employed by terrorist financiers to conceal the movement of illicit funds.
The agency said accounts may be opened in the names of wives, sisters or female associates while male commanders or logistics managers secretly control them through ATM cards, mobile-banking credentials and PINs.
Read also:
- How to Report Fraud Cases to the EFCC: Step-by-Step Guide for Nigerians
- EFCC Arraigns Miyetti Allah Leader Bodejo Over Alleged $2.33m Money Laundering, Court Orders Remand
- EFCC Drags Ex-Port Harcourt Refinery MD to Court over Alleged ₦218.4m Money Laundering
The NFIU described the practice as “identity laundering”, noting that the person whose name appears on an account may not necessarily be the individual exercising effective control over the funds.
The agency warned that the growing use of digital banking, electronic payments and mobile financial services has created additional opportunities for criminals to exploit weaknesses in customer identification and transaction monitoring.
The findings come amid efforts by financial regulators and identity-management authorities to strengthen the linkage between bank accounts, Bank Verification Numbers (BVN), National Identification Numbers (NIN) and SIM cards.
The report underscores the need for financial institutions to strengthen Know-Your-Customer controls, monitor suspicious transactions in real time and verify the identities of individuals who actually control accounts and payment instruments.
The development highlights the growing challenge confronting Nigeria’s financial intelligence and law-enforcement agencies as terrorist financing increasingly exploits digital channels and weaknesses in identity-verification systems.
