CBN warns of illegal firms promising outrageous returns

Agency Report
Agency Report
CBN Building

THE Central Bank of Nigeria has warned the public to avoid dealing with unlicensed or illegal financial operators who lure and defraud unsuspecting members of the public with promises of outrageous returns.

The CBN disclosed this in the Financial Services Regulation Coordinating Committee’s public statement advisory on illegal financial operators in Nigeria posted on its website on Monday.

It stated that, “The FSRCC wishes to draw the attention of the general public to the worrisome increase in the activities of the Illegal Financial Operators which portend grave risk to public confidence and the stability of the Nigerian Financial System.

“The FSRCC in its continuing efforts to end the scourge of IFOs in Nigeria, hereby issues the following advisory:

“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.”

It urged the public to visit the websites of the CBN, Securities and Exchange Commission and other relevant member agencies of the FSRCC to verify the registration and license status of such companies and schemes before investing in them.

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

“Financial regulatory agencies shall continue to carry out all necessary due diligence before registering/licensing any operator under their regulatory purview.”

It added that agencies must refer to relevant supervisory authorities for confirmation before finalising on any registration/licensing application.

Share this Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *