Business & Economy

CBN Warns Nigerians Against Fake SWIFT Messages

Published by
Emmanuel Eze

The Central Bank of Nigeria (CBN) has raised an alarm over the increasing use of fraudulent SWIFT messages by individuals, law firms, and even government agencies to make unsubstantiated claims about foreign currency transfers. The apex bank, through a statement issued by its Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, cautioned the public against relying on such documents as evidence of funds transfers.

In recent months, the CBN has been inundated with complaints from entities alleging that foreign currency inflows meant for their accounts in Nigerian banks were being withheld either by the CBN or beneficiary banks. These claims were often supported by documents such as fake SWIFT MT103 forms or SWIFT acknowledgment (Ack) copies, which the CBN emphasized are unreliable and unverifiable on the official SWIFT network.

According to the statement, such SWIFT documents are typically fabricated and do not reflect actual transfers of funds. “The SWIFT messages are always not traceable on the SWIFT platform, and the funds have not been received to enable their application to the beneficiary’s account,” the CBN explained.

Standard Procedures for Fund Transfers

The CBN urged the public to adhere to proper procedures when dealing with issues of non-receipt of funds. In cases where a beneficiary’s bank claims it has not received foreign currency inflows, the sender (foreign entity) should contact their bank to initiate a tracer. This process allows the sending bank to locate the funds and recall them if necessary.

Importantly, the apex bank clarified that it does not act as a correspondent bank for foreign transactions nor maintain accounts for private businesses. Claims suggesting that funds are “trapped” at the CBN were dismissed as “spurious and deceitful.”

A Warning to Perpetrators

The CBN’s statement also contained a stern warning to individuals and entities attempting to use fraudulent SWIFT messages to support illegitimate claims. The apex bank vowed to refer such cases to law enforcement for thorough investigation and prosecution.

“The general public is therefore advised to be careful with such unauthentic SWIFT messages and documents containing spurious claims of non-application of substantial foreign currency funds,” the statement read. It added that any bank customer making illegitimate claims would face legal consequences.

Protecting the Financial System

This warning underscores the CBN’s commitment to safeguarding Nigeria’s financial system from fraudulent activities. With cross-border transactions increasing in volume, the apex bank is urging heightened vigilance to protect businesses and individuals from being deceived by fake documents.

Nigerians are advised to seek guidance from their financial institutions and to avoid escalating unsubstantiated claims to the CBN or law enforcement. By following established procedures, stakeholders can ensure smoother resolution of genuine fund transfer issues.

This latest advisory from the CBN serves as a reminder of the need for integrity and transparency in financial dealings.

What is SWIFT?

SWIFT, short for the Society for Worldwide Interbank Financial Telecommunication, is a global network that facilitates secure and standardized financial messages among banks and financial institutions. It enables the seamless transfer of funds, payment instructions, and other financial information across borders. Each transaction is documented through unique messages, such as the SWIFT MT103, which provides details about individual transfers. However, the legitimacy of these messages relies on their traceability within the SWIFT platform, a feature often lacking in fraudulent documents.

Emmanuel Eze

Emmanuel Eze is an early career journalist with an interest in reporting economic and business related issues

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