In a significant shift towards proactive financial crime prevention, the Economic and Financial Crimes Commission (EFCC) has announced its new strategy to freeze suspicious funds within 72 hours of detection. This announcement was made by the EFCC Chairman, Mr. Ola Olukoyede, during a media session in Abuja, marking his third anniversary in office.

Olukoyede emphasized the importance of early detection in combating financial crimes, stating that the EFCC is moving away from a reactive approach to one that prioritizes prevention. He expressed frustration over waiting for crimes to occur, saying, "Why must we be waiting for money to be stolen? When we see money moving suspiciously, we move in and freeze. Pending 72 hours, we ask: where is this money going?"

The establishment of the Fraud Risk Assessment and Control Department (FRAC) is a key component of this new strategy. This department is tasked with monitoring unusual financial movements, particularly those involving local government accounts and cryptocurrency wallets. Olukoyede highlighted the alarming trend of public officials transferring funds into crypto wallets within a short timeframe, often using younger individuals to facilitate these transactions, which complicates recovery efforts.

The EFCC chairman pointed out the challenges posed by the rapid movement of funds into cryptocurrency, stating, "At the press of a button, you can collapse the entire banking industry in Nigeria. Most of the data we are investigating now, you can’t trace tangible assets to them."

In response to these challenges, the EFCC has licensed approximately 40 virtual asset platforms in Nigeria, enhancing its capacity to trace registered cryptocurrency wallets. Furthermore, with presidential approval, the commission has established a national confiscation wallet specifically for storing seized cryptocurrencies, addressing previous concerns about managing confiscated virtual assets.

Olukoyede also outlined a legal strategy that leverages Section 17 of the Advance Fee Fraud Act, allowing the EFCC to pursue civil asset forfeiture. This approach aims to expedite the recovery of assets without the lengthy delays associated with criminal trials, which can last for years. He noted that this method has already shown positive results in several ongoing cases involving assets linked to former officials.

On the management of forfeited assets, the EFCC does not directly oversee these assets but instead appoints professionals in accordance with the Proceeds of Crime Act 2022. For instance, real estate assets are managed by estate professionals, while virtual assets are handled by stock market experts. Recently, some high-profile hotels that were forfeited in Lagos have been placed under new management, with banks required to remit all sales and income to the EFCC.

Finally, Olukoyede called for stronger policy reforms and institutional changes to effectively combat financial crime, asserting that law enforcement alone is insufficient. He urged the media and civil society to resume their critical roles as watchdogs in the fight against corruption, highlighting the need for a comprehensive approach to close the gaps that allow financial crimes to flourish.