Cynthia Ezekwe
The Nigerian Communications Commission (NCC) says robust information and communication technology (ICT) systems are essential for combating financial crime by facilitating real-time surveillance, regulatory compliance, and secure data processing.
According to Aminu Maida, the NCC’s executive vice chairman, effective ICT use is critical for investigating financial crime and reducing the risks associated with virtual assets in the financial markets.
Maida described financial crimes as “criminal activities that involve
transactions, abuse, misuse, deception, or manipulation of financial systems for
personal gain.” He said the crimes also include a wide range of offences such as
insider abuse, money laundering, terrorism financing, embezzlement and all kinds
of fraud.
Maida noted that financial crimes not only have major economic and social repercussions, but can also be linked to violent crimes that result in loss of life. He also pointed out that they threaten the integrity, trustworthiness, stability, security, safety, and future of an entity like a country, company, or individual.
Maida observed that the scope of financial crime has widened due to the growing use of digital technologies and the emergence of new technologies. He explained that criminals exploit inherent and emerging vulnerabilities in ICT systems to cause harm to the financial sector.
“Nigeria’s telecoms sector has grown significantly, resulting in massive amounts of
data being generated on a daily basis, the advent of advanced data analytics and
artificial intelligence (AI) provides a gateway to identify suspicious digital patterns
indicative of crime. Through partnerships with financial institutions data can be
filtered to identify these suspicious patterns and nip them in the bud. These
technologies provide real-time transaction monitoring, allowing for a proactive
approach to crime prevention” he said.
To combat financial crime, Maida said innovative solutions such as blockchain, instant payments, artificial intelligence, machine learning, data analytics, regulatory technology solutions, and automated procedures are being used. He said the use of technological tools has made it easier to deal with financial crime while developing a long-term strategy to combat it.
Commenting on the commission’s efforts to mitigate financial crime, Maida noted that the Commission has established the Computer Security Incident Response Team (CSIRT) to address security incidents that can impact organisations and individuals, and it has implemented biometric authentication for telecom services and financial transactions on telecom carriers with strict enforcement of compliance by licensees.
According to Maida, public education on internet safety is key to reducing the risks associated with technological crime, and he stressed the need for increased collaboration and international cooperation to effectively combat financial crime.
He added that continued investment in ICT solutions, and a multidisciplinary and multi-stakeholder approach involving technology specialists, legal professionals, and legislators, is crucial to keep pace with emerging criminal methods.
