NFIU Reveals New Tactics in Terrorist Financing

The Nigerian Financial Intelligence Unit (NFIU) has released its 2025 Annual Report, revealing new methods employed by terrorist financiers to obscure their identities and manage illicit funds. Key tactics include the use of pre-registered SIM cards, accounts opened in the names of women, and disconnected SIM-Bank Verification Number (BVN) linkages.

The NFIU reported that terrorist facilitators exploit gaps in the connection between mobile numbers and financial identities, utilizing SIM cards registered to deceased individuals or linked to proxies to bypass security measures. This practice allows individuals controlling illicit funds to remain anonymous, as the mobile banking notifications are sent to unconnected users.

Additionally, proxy bank accounts are often opened in women's names, while male operatives manage these accounts, a tactic described as "identity laundering." The report indicates that weak customer identification controls and limited oversight of digital financial services are significant enablers of financial crime. The findings coincide with ongoing efforts by Nigerian regulators to enhance the integration of digital identities with financial accounts.