Contact us on 0700 CALL CSCS (0700 2255 2727) or [email protected]

EFCC Clarifies Red Alert on Capital Markets Scam

EFCC Clarifies Red Alert on Capital Markets Scam

On April 21, 2017, the Economic and Financial Crimes Commission, EFCC, as part of our public enlightenment campaign, made a post via our social media platforms titled: “Red Alert on Capital Markets Scam”.

The post, a routine public enlightenment, was meant to educate investors of the various antics of fraudsters in the Nigerian capital market and not any way intended to cast aspersions on the reputation of The Nigerian Stock Exchange (NSE or Exchange), the CSCS Plc and their principal officers as colluding with fraudsters; rather both firms are strategic partners of EFCC in the fight against capital market frauds.

lign=”justify”>It would be recalled that The NSE on October 4, 2013 signed a Memorandum of Understanding (MoU) with the EFCC to tackle market infractions and abuse. 

This partnership has successfully opened direct lines of communication and information sharing with the EFCC for reporting and investigations of incidents leading to a more proactive law enforcement and swift recovery of stolen securities.

The MOU also provides for a two-way training programme where we train NSE staff on the proactive prevention of capital market frauds and NSE trains our staff about key activities of the capital market.

According to Adesola Kolawole Amusan, Head, Capital Markets and Insurance Unit, EFCC, “we are aware that the NSE undertakes series of market surveillance activities necessary to rid the market of fraudster and has acquired NASDAQ’s SMARTS Market Surveillance platform to power its compliance program which is necessary to monitor the market for manipulation, including spoofing and layering. We encourage investors to subscribe to trade alerts and other services by the Exchange and CSCS that will enable them monitor their investments and report infractions as soon as they are noticed”.

He further said that “investors should familiarize themselves with the Requirements For Inter-Member Transfers From Suspended/Inactive/Expelled Stockbroking Firms as contained on the website of NSE (www.nse.com.ng)”.

It is worth noting that this collaboration between EFCC, NSE and CSCS has been yielding fruits as crimes are being prevented and prosecutions within the Nigerian capital market have increased.

Currently more than 22 cases referred to the EFCC by the Exchange are at different stages of investigation or prosecution.

Share This Post

Related Posts

Press Release

We Could Not Have Made It This Far Without You!

We Could Not Have Made It This Far Without You! Esteemed Stakeholder, What an interesting year 2022 has been! As we draw the curtain on the year, it is worthwhile to look back to admire all the twists and turns we maneuvered together; and whilst some people cannot wait to kick the dust off their shoes (and in many cases,

Adeyinka Shonekan's Portrait
Press Release

CSCS PLC Strengthens Leadership Bandwidth with Appointment of Adeyinka Shonekan as Executive Director

Lagos, Nigeria –  11 November 2022: Central Securities Clearing System (CSCS) Plc, Nigeria’s premier Central Securities Depository (CSD), has today announced the appointment of  Mr. Adeyinka Shonekan, as Executive Director on its Board. The appointment of Adeyinka as an Executive Director, results from a rigorous process to add valuable experience to the Board whilst also strengthening Management bandwidth.  Adeyinka, currently