The Federal High Court in Lagos has ordered banks and financial technology companies to freeze 69 accounts over their alleged involvement in a N1.39 billion fraud linked to eTranzact, a payment processing firm. The order was granted following an application by the Economic and Financial Crimes Commission (EFCC), according to court documents seen by Nairametrics.
Details of the Court Order
The court order, presided over by Justice Mohammed Liman, directs the banks and fintechs to freeze the accounts for an initial period of 90 days, pending the conclusion of investigation by the EFCC. The accounts were allegedly used to launder proceeds of fraud perpetrated against eTranzact.
According to the EFCC's application, the funds were moved through multiple accounts across several banks and fintech platforms, making it difficult to trace the ultimate beneficiaries. The anti-graft agency stated that the freezing order is necessary to preserve the funds and prevent further dissipation.
EFCC's Allegations
The EFCC alleged that the accounts were used to receive and transfer funds stolen from eTranzact's settlement accounts. The commission's investigation revealed that the fraud was carried out through unauthorized transactions, with the complicity of some bank staff and fintech operators.
In an affidavit filed by an EFCC investigator, it was stated that the suspects created fictitious accounts and used them to divert funds meant for eTranzact's merchants. The investigator noted that the total amount involved in the fraudulent activities is approximately N1.39 billion.
Impact and Next Steps
The freezing order affects accounts in several commercial banks and fintech companies, including some of the largest in Nigeria. The affected institutions are required to comply with the order and provide the EFCC with statements and other relevant documents related to the accounts.
This development is part of the EFCC's broader crackdown on financial fraud in the country. The agency has urged the public to report any suspicious financial activities and assured that it will continue to pursue those involved in economic crimes. The case is adjourned to a later date for further hearing.
