EFCC Case Exposes Risks of Identity Abuse in $5.3m Money Laundering Scheme

The anti-graft agency alleged that the defendants allowed their identities to be used to incorporate companies and open corporate bank accounts through which a combined $5,296,691 was allegedly transferred in January 2025.

The prosecution of four Lagos residents over an alleged $5.3 million money laundering scheme has drawn attention to a growing tactic used by criminal networks—recruiting individuals to lend their identities for the registration of companies and the opening of bank accounts used to move illicit funds.

The Economic and Financial Crimes Commission (EFCC) on Friday arraigned Bamidele Ayodele Emmanuel, Abdullah Oriyomi, Garuba Fathiat Funmilayo and Gbenro Victor Ademola before Justice F. N. Ogazi of the Federal High Court in Ikoyi, Lagos, on separate two-count charges bordering on money laundering.

The anti-graft agency alleged that the defendants allowed their identities to be used to incorporate companies and open corporate bank accounts through which a combined $5,296,691 was allegedly transferred in January 2025.

According to the EFCC, investigations showed that the defendants provided their personal information to one Afeez Animashaun, who allegedly approached them at Mushin Market, where they conducted their businesses.

The commission said the information was used to register four companies—College Compass Eduguide Nigeria Limited, Hortifresh Solutions Nigeria Limited, Eduboost Innovation Nigeria Limited and Fixit Hardware and Tools Nigeria Limited—before corporate bank accounts were opened in the companies' names.

One of the charges alleged that Emmanuel retained $826,691 in his Wema Bank account between January 1 and 31, 2025, despite allegedly knowing, or having reasonable grounds to suspect, that the funds were proceeds of unlawful activities, an offence punishable under the Money Laundering (Prevention and Prohibition) Act, 2022.

All four defendants pleaded guilty after the charges were read to them.

During the proceedings, EFCC prosecuting counsel Bilkisu Buhari told the court that the arrangement enabled the true operators of the companies to conceal their identities while moving millions of dollars through Nigeria's financial system.

She urged the court to convict the defendants and impose appropriate penalties in line with the law.

Justice Ogazi remanded the defendants in a correctional facility and adjourned the case until August 4, 2026, for judgment.

The case underscores the increasing use of identity proxies in financial crimes and reinforces the need for stronger public awareness, stricter corporate registration processes and enhanced due diligence by financial institutions to prevent the misuse of personal identities in illicit financial transactions.