The Nigerian Financial Intelligence Unit (NFIU) has expressed concern over a significant rise in suspicious financial transactions from Nigeria to Dubai and Hong Kong—two locations it now labels as emerging global centres for illicit money flows.
According to a report published in May 2025 and obtained by Chronicle NG on Tuesday, the NFIU recorded 401 Suspicious Transaction Reports (STRs) linked to the two regions between January 2021 and September 2024. The combined value of these transactions stood at more than N48bn.
Of the total reports, 185 were tied to Dubai, accounting for the lion’s share of N29.6bn. The remaining 216 were associated with Hong Kong, with a cumulative value of N18.6bn.
“The NFIU finds it pertinent to issue this advisory to relevant stakeholders to employ Enhanced Due Diligence in the detection, deterrence, and prevention of abuse of the financial system through these hotspots,” the report stated. “Reporting suspicious transactions and activities flowing from these jurisdictions is critical to protecting the Nigerian financial system and contributing to the global fight against money laundering, terrorist financing, and proliferation financing.”
The report showed a worrying pattern, with a gradual but significant spike in such financial activities over the years. Only two STRs worth N42m were recorded in 2021, but by 2024, the figure had jumped to 202 transactions valued at N32bn.
The NFIU linked the surge to factors such as regulatory loopholes, proliferation of shell companies and offshore accounts, as well as weak enforcement systems in both Dubai and Hong Kong.
“Dubai, a major financial and commercial centre in the Middle East, has become a focal point in the global fight against money laundering. Its strategic location, burgeoning real estate market, and business-friendly environment make it appealing to both legitimate investors and criminal actors,” the report noted.
It further referenced the 2020 Dubai Leaks scandal, which uncovered how individuals facing sanctions, suspected criminals, and politically exposed persons held significant real estate assets in the city.
Regarding Hong Kong, the report added: “Hong Kong, a major financial hub in Asia, is similarly challenged by money laundering activities. Its role as an international finance centre and gateway to mainland China makes it a critical node in global financial flows.
“The city has witnessed a number of high-profile money laundering cases involving major international banks. These incidents underscore the ongoing challenge of balancing financial openness with effective regulatory oversight.”
In response, the NFIU has called on Nigerian banks, regulators, and financial entities to apply Enhanced Due Diligence practices, boost their transaction monitoring systems, and ensure prompt reporting of any suspicious activities linked to these regions.
“This advisory is a call to arms for Nigerian financial stakeholders,” the report concluded. “Failure to act decisively could expose the country to deeper financial crime risks and serious international reputational damage.”
