The Financial Services Regulation Coordinating Committee has advised members of the public to refrain from dealing with illegal financial operators.
According to the FRSCC, the rise in the activities of IFOs portend a grave risk to public confidence and the stability of the Nigerian financial system.
It noted that the unlicensed/illegal operators lure and defraud unsuspecting members of the public by offering extraordinary returns on investments as bait, hereby urging the public to verify the registration and license status of such companies and schemes before investing in them.
FRSCC is an inter-agency body set up to deal with matters of common interest and concern to the various regulatory and supervisory authorities in the financial services industry.
What the CBN is saying
The surge in the operations of Illegal Financial Operators (IFOs), according to the apex bank, is disturbing and poses a major danger to public confidence and Nigeria’s financial stability.
The document partly reads, “The FSRCC wishes to draw the attention of the general public 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 solution for the reduction in crimes committed by the illegal IFO would largely depend on the willingness of Nigeria to do their research and abstains from unusual profit.
The partly document reads, “The general public is advised to refrain from dealing with unlicensed or illegal financial operators, who lure and defraud unsuspecting members of the public by offering extra-ordinary returns on investments as bait.”
Members of the public are urged to visit the CBN’s official website, as well as the websites of the Securities and Exchange Commission (SEC) and other relevant FSRCC member agencies, to check the registration and license status of such companies and schemes before investing in them.
The bank also asked Nigerians to report to law enforcement agencies any individual or entity suspected of being involved in such illicit activities.
Before registering/licensing any operator under their regulatory scope, financial regulatory bodies will continue to conduct essential due diligence. Hence, it would be prudent to check with the financial authorities before investing in any financial institution.
