The Nigerian Financial Intelligence Unit has raised the alarm over a sharp increase in suspicious financial transactions flowing from Nigeria to Dubai and Hong Kong, which it now identifies as emerging hotspots for illicit financial activities.

In a report released in May 2025 and obtained by our correspondent on Tuesday, the NFIU disclosed that it received 401 Suspicious Transaction Reports linked to both jurisdictions between January 2021 and September 2024. The total value of these transactions was over ₦48 billion.

Of the Suspicious Transaction Reports, only 185 were linked to Dubai, yet they accounted for the bulk of the total value—₦29.6 billion.

In contrast, the remaining 216 STRs were traced to Hong Kong, with a combined value of ₦18.6 billion.

“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 revealed a troubling pattern—a sharp and consistent rise in suspicious financial transactions linked to both destinations.

In 2021, authorities flagged just two STRs worth ₦42 million. By 2024, the number had skyrocketed to 202 reports, totaling ₦32 billion.

The report uncovered a troubling trend: a sharp rise in suspicious transactions tied to both destinations. From just two STRs worth ₦42 million in 2021, the figure soared to 202 reports totaling ₦32 billion by 2024.

These conditions, the agency said, have made both regions attractive to criminal networks.

“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.

The report also cited high-profile cases, including the 2020 Dubai Leaks scandal, which revealed how individuals under international sanctions, alleged criminals, and politically exposed persons held substantial real estate assets in the city.

On Hong Kong, the report stated: “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 to the findings, the NFIU has called on Nigerian financial institutions and regulators to implement Enhanced Due Diligence measures, reinforce their transaction monitoring systems, and ensure prompt reporting of suspicious transactions connected to Dubai and Hong Kong.