Unity Bank’s Possible Complicity in N458m Money Laundering Scandal Sparks Concerns

Unity Bank’s role in the alleged N458 million money laundering case has raised suspicions of complicity, with the Economic and Financial Crimes Commission (EFCC) presenting its first witness, Emmanuel Adeyemi, Head of Fraud Prevention and Investigation at Unity Bank, in court. Adeyemi testified that the bank’s database was compromised on December 24 and 25, 2021, resulting in the fraudulent transfer of about N458 million from nine customer accounts to various banks. ¹ ² ³

The bank’s management petitioned the EFCC, seeking assistance in investigating the fraud and identifying the perpetrators. However, critics argue that Unity Bank’s compromised database and subsequent petition to the EFCC suggest possible negligence or involvement by bank officials. ⁴

This isn’t the first time Unity Bank has been embroiled in controversy. The bank’s former chairman, Thomas Akoh Etuh, has been accused of orchestrating a massive fraud scheme, including granting excessive loans to himself and associates, resulting in significant financial losses for the bank. ⁵

Unity Bank’s former chairman, Thomas Akoh Etuh, is accused of orchestrating a massive fraud scheme, including granting excessive loans to himself and associates, resulting in significant financial losses for the bank. The Global Integrity Crusade Network (GICN) has petitioned the Economic and Financial Crimes Commission (EFCC) to investigate Etuh for alleged insider abuse and fraudulent conversion of depositors’ funds.

The allegations against Etuh include inflating Unity Bank’s Non-Performing Loans (NPLs) to over N400 billion, with seven companies linked to him accounting for N29 billion of these loans. Etuh allegedly sold Unity Bank’s loans to Frontier Capital Alternative Assets Limited (FCAAL) at a significantly undervalued price, causing losses to the bank. The sale was reportedly made to cover up Etuh’s huge NPLs, and FCAAL has made little recovery on the loans. ¹ ²

Unity Bank has refuted the allegations, stating that it has no grounds to corroborate the fraud claims against Etuh. However, the EFCC has acknowledged receipt of the petition and is expected to investigate.

Unity Bank’s former chairman, Thomas Akoh Etuh, is facing allegations of fraud and money laundering, with the Economic and Financial Crimes Commission (EFCC) receiving a petition to investigate him. The Global Integrity Crusade Network (GICN) accused Etuh of committing offences during his tenure as chairman of Unity Bank’s Board of Directors between January 2015 and October 2017, leading to significant financial losses for the bank and its customers. ¹ ²

The allegations include inflating non-performing loans (NPLs) and selling Unity Bank’s loans to Frontier Capital Alternative Assets Limited (FCAAL) at an undervalued price. Etuh’s bank accounts have been frozen due to an alleged debt of N24.9 billion ($16.1 million).