Beware Of Illegal Financial Operators, FSRCC Warns Nigerians

The Financial Service Regulation Coordinating Committee has advised Nigerians to refrain and report Illegal Financial Operators (IFOs) offering extra-ordinary returns on investments as bait.

The FSRCC said its member agencies- the Central Bank of Nigeria and the Securities and Exchange Commission are stepping up efforts to sanitize IFOs from the system.

The reaction is coming few weeks after a purported investment company, Chinmark Group, carted away billions belonging to unsuspecting investors.

Chinmark, like other IFOs, promised high return as over 4,466 victims were defrauded.

The Chief Executive Officer of Chinmark Group, Marksman Ijiomah, has reportedly absconded.

The FSRCC described the growing threats of such dubious establishments as “worrisome and portends grave risk to public confidence and the stability of the Nigerian Financial System.”

FSRCC said, “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 advised to visit the websites of the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC) and other relevant member agencies of the FSRCC to verify the registration and license status of such companies and schemes before investing in them.

“You are also advised to report any individual or entities suspected to be involved in such nefarious activities to the law enforcement agencies.”

FSRCC said financial regulatory agencies will continue to carry out all necessary due diligence before registering/licensing any operator under their regulatory purview.

It added, ” Agencies shall refer to relevant supervisory authorities for confirmation before finalizing on any registration/licensing application.

“Member agencies are encouraged to engage in regular sensitization campaigns on the threats posed by the activities of Illegal Financial Operators.”