The Nigerian Financial Intelligence Unit (NFIU) has raised an alarm over a sharp rise in suspicious financial transactions from Nigeria to Dubai and Hong Kong—two jurisdictions it has identified as emerging global hotspots for illicit financial flows.

In a report released in May 2025 and obtained by our correspondent, the NFIU disclosed it had received 401 Suspicious Transaction Reports (STRs) linked to the two locations between January 2021 and September 2024, with the total value of the flagged transactions exceeding ₦48bn.

Although only 185 of the STRs were tied to Dubai, they accounted for the bulk of the financial outflow—₦29.6bn. 

The remaining 216 STRs involved Hong Kong, with a reported value of ₦18.6bn.

“The NFIU finds it pertinent to issue this advisory to relevant stakeholders to employ Enhanced Due Diligence in the detection, deterrence, and prevention of abuse of the financial system through these hotspots,” the report stated. 

“Reporting suspicious transactions and activities flowing from these jurisdictions is critical to protecting the Nigerian financial system and contributing to the global fight against money laundering, terrorist financing, and proliferation financing.”

The report highlighted a disturbing trend: a steady and significant increase in suspicious financial activities directed at both destinations. In 2021, only two STRs worth ₦42m, were reported. 

By 2024, the number had surged to 202 reports with a combined value of ₦32bn.

According to the NFIU, this pattern is driven by a combination of regulatory loopholes, the proliferation of shell companies and offshore accounts, and weak enforcement mechanisms in both Dubai and Hong Kong.

“Dubai, a major financial and commercial hub in the Middle East, has become a focal point in the global fight against money laundering. 

“It’s strategic location, booming real estate market, and business-friendly environment attract both legitimate investors and criminal actors,” the report noted.

It also referenced the 2020 Dubai Leaks scandal, which exposed how individuals under international sanctions, alleged criminals, and politically exposed persons held significant real estate assets in the city.

Regarding Hong Kong, the report stated: “Hong Kong, a key financial centre in Asia, similarly faces significant money laundering challenges. 

As a gateway to mainland China and a global financial hub, the city has been the site of multiple high-profile money laundering scandals involving major international banks.”

In response to these findings, the NFIU has urged Nigerian financial institutions and regulators to adopt Enhanced Due Diligence practices, bolster transaction monitoring systems, and prioritise the timely reporting of suspicious transactions linked to Dubai and Hong Kong.

“This advisory is a call to arms for Nigerian financial stakeholders,” the report added. 

“Failure to act decisively could expose the country to greater financial crime risks and serious international reputational harm.”