Members of the public should avoid dealing with illegal financial operators, according to the Financial Services Regulation Coordinating Committee.
According to the FRSCC, the increased activities of IFOs pose a serious threat to public confidence and the financial system’s stability in Nigeria.
It was noted that unlicensed/illegal operators use extraordinary returns on investments as bait to lure and defraud unsuspecting members of the public, urging the public to check the registration and license status of such companies and schemes before investing in them.
The Financial Services Regulatory and Supervisory Cooperation Council (FRSCC) is an inter-agency body created to address issues of common interest and concern to the various regulatory and supervisory authorities in the financial services industry.
What the CBN has to say
According to the apex bank, the increase in the operations of Illegal Financial Operators (IFOs) is alarming and poses a serious threat to public confidence and financial stability in Nigeria.
“The FSRCC wishes to draw the general public’s attention to the worrisome increase in the activities of the Illegal Financial Operators (IFOs), which portends grave risk to public confidence and the stability of the Nigerian Financial System,” the document says in part.
The willingness of Nigeria to conduct research and refrain from unusual profit would be critical to reducing the number of crimes committed by illegal IFOs.
“The general public is advised to avoid dealing with unlicensed or illegal financial operators who lure and defraud unsuspecting members of the public by offering extraordinary returns on investments as bait,” the document says in part.
Before investing in such companies or schemes, members of the public should check the registration and license status of such companies and schemes on the CBN’s official website, as well as the websites of the Securities and Exchange Commission (SEC) and other relevant FSRCC member agencies.
The bank also asked Nigerians to report any individual or entity suspected of being involved in such illegal activities to law enforcement agencies.
Financial regulatory bodies will continue to conduct essential due diligence before registering/licensing any operator under their regulatory scope. As a result, before investing in any financial institution, it would be prudent to check with the financial authorities.
