The Nigerian Financial Intelligence Unit (NFIU) has flagged Dubai and Hong Kong as emerging global hotspots for illicit financial flows originating from Nigeria, raising fresh concerns over the integrity of the nation’s financial ecosystem.
According to a new advisory report released in May 2025 and obtained on Tuesday, the NFIU disclosed that it received 401 Suspicious Transaction Reports (STRs) linked to both regions between January 2021 and September 2024.
The cumulative value of the flagged transactions exceeded N48 billion, highlighting a troubling escalation in cross-border financial activity routed through jurisdictions known for regulatory vulnerabilities.
Of the 401 STRs, 185 were connected to Dubai, accounting for the bulk of the value—N29.6 billion. The remaining 216 transactions were traced to Hong Kong and amounted to N18.6 billion.
“In recent years, Dubai and Hong Kong have emerged as destinations of interest for money laundering networks,” the report stated. “This advisory is issued to alert financial institutions and stakeholders to strengthen their controls and enforce Enhanced Due Diligence procedures for transactions involving these jurisdictions.”
The NFIU noted a dramatic surge in the frequency and volume of such suspicious activities. In 2021, only two STRs were recorded with a total value of N42 million.
By 2024, the number had increased to 202 STRs valued at N32 billion—representing an over 7500 percent rise in transaction volume and an exponential increase in transaction value.
The intelligence agency attributes the trend to a convergence of factors, including widespread use of shell companies, offshore bank accounts, minimal enforcement of anti-money laundering regulations and a lack of cross-border oversight.
It stated that these loopholes have been exploited by criminal networks, politically exposed persons and actors involved in capital flight.
“Dubai’s status as a major financial and commercial hub, combined with a growing real estate market and investor-friendly policies, makes it an attractive environment for both legitimate capital and illicit flows,” the report noted.
The NFIU also cited previous high-profile scandals, including the 2020 Dubai Leaks, which exposed how global criminal elements leveraged the city’s financial infrastructure to hide assets and bypass sanctions.
On Hong Kong, the agency highlighted the city’s position as a critical node in global finance, acting as a gateway to mainland China.
The report referenced multiple historical money laundering incidents involving global banks, reinforcing the vulnerability of the region to regulatory exploitation.
“Hong Kong’s financial architecture, while sophisticated, remains susceptible to misuse by actors who leverage its openness and legal complexity,” the NFIU stated.
The agency has urged Nigerian banks, non-bank financial institutions, and designated non-financial businesses to implement tighter Know-Your-Customer (KYC) processes, risk-based transaction monitoring and swift reporting of suspicious transactions linked to both regions.
“This advisory is a strategic call for vigilance and immediate compliance enhancement,” the report concluded. “Failure to act exposes Nigeria’s financial system to heightened reputational and systemic risk, with implications for international cooperation in the global fight against money laundering and terrorist financing.”
The NFIU’s warning underscores growing international concerns over the use of safe-haven jurisdictions by illicit networks and the urgent need for stronger cross-border financial intelligence collaboration.
As Nigeria intensifies its anti-corruption and financial crime enforcement measures, regulatory authorities are expected to prioritize tighter surveillance and reporting frameworks for transactions involving offshore destinations with elevated laundering risks.
